EXECUTIVE SUMMARY

This paper focusing on the topic of Green Investment: a future strategy. It will defined more
on the green in term of technology and what could be include in terms of investment. As the
term ‘Green’ is in color, it brought the positive message of saving and preservation of the earth.
The investment could vary between the institution and its intended purpose. As in Kyoto
Protocol, it touches part of the Six Greenhouse gas that is emitted. While other could define
the Green Investment is an investment that is made in the production of a new product that is
more environmentally friendly such as Bio-gas or Bio-Fuel.
It could be a future strategy. However, there are variables in the Green Investment schemes
that in to be look in to. This is because, the results in each variable could be differ in terms of
the aim and intention the investment that to be made of. There are also long term and short
term run to be taken into account. The variables are also include in the institution reputation,
rules and regulation and other internal and external factors that could effect the rate of returns
of the investment.

1.0 INTRODUCTION
In the current situation, world globalization has taken its place, our world is now
focusing on the preservation of the earth. Since almost all of our natural resource has been used
up, the earth to survive for a longer time. Hence, the term ‘Green’ is about the preservation of
natural resources. The tagline ‘Saving the Earth’ and ‘Green Technology’ has been used almost
everywhere as a reminder for the Earth people in regards to the preservation procedures. All
that we know of is any definition that is related to ‘Green’ is the meaning of anything that will
be related to the earth’s preservation.
The definition of ‘Green Investment’ can vary depending on the type of ‘Green’ an
institution is intended to. It can be explained in more direct meaning. For example, ‘Green
Investment’ is an investment made in a technology that is more environmentally friendly.
Various scholars have come up with different definitions of ‘Green Investment’. According to
the definition stated in Investopedia, Green Investing is considering an investing activity that
is influenced by environmental business practices and the alteration of natural resources.
More or less, all the definition concerning ‘Green Investment’ is the investment that is
related to environmental safety. The build-up of factories causes the emission of toxic gas that
is harmful to the surrounding, the greenhouse effect, and global warming that causes the ice to
melt and leads to the rise of sea level and many other consequences that need to be paid for due
to the current development. All of this causes permanent damage to the earth that needs to be
repaired pronto.
Therefore, scientists, engineers, and technologists have come up with a solution that
kept the development ongoing while preserving the earth on what could be saved. This is where
the ‘Green Investment’ could take place. Institutions in the monetary bodies are in their hands
all together to come up with schemes and funds to make the ‘Green’ project a reality. According
to the definition from (IMF, 2008), ‘Green Investment’ is the investment that was made in
preserving the earth. Any technology invested that led to earth preservation and mitigates
pollution and harmful effect is considered a ‘Green Investment.
Various type of study has been carried out regarding the Green Investment Schemes
and it is one of the factors that leads to the Kyoto Protocol. The various definition carried out
could be in terms of technology or both ecological reasons.
The Green Investment (GI) could also be classified into 3 different components. The
first component is the Low-emission energy supply. It is applicable in GI that the shifting of
energy supply from the fuels created from fossils to other options creates less pollution such as
the usage of renewable natural resources. Examples of these resources are wind, solar, nuclear,
hydropower and others. The usage of GI in these components also can be found in biofuel. The
second component that is classified in the GI is Energy efficiency. This is where the investment
occurs in the reduction amount of energy that is required in the production of goods or services.
The efficiency can also be found in the usage of the electrical power transportation of solar
power plant that helps to convert into electrical energy to be used in various services. The third
component in the GI is Carbon sequestration. It occurs as the product of the combustion of
fuels. It is also widely be found in deforestation and agriculture. Traditionally, in agriculture,
there are country that burn their crops. This activity, creates a large amount of CO2 that is
produced by combustion. On the other hand, the mitigation process of to these variables could
lead to a large sum of capitals and hence not many of the business owners will to take part in
the investment. Hence, their info are limited.
There are many ways that could be used in measuring GI. The measurement is covered
of the Financial investment in the renewable technologies, the capacity of the investment in the
nuclear sector, the selected energy-efficient technologies, and lastly the investment is done in
the research and development programs.
2.0 DISCUSSION
The Kyoto Protocol was a Protocol that is developed in order to the earth preservation.
It is the United Nations Framework Convention on Climate Change the operationalization of
the industrial country to limit their emission of greenhouse gases to within its safe limits. There
are policies that have been agreed upon within the country to measure and recorded the
emission activities and report it periodically. The Kyoto Protocol establishments have opened
up to the ‘Green Investment Scheme’ (GIS). The aim of GIS is to promote environmental
efficacy through the transition economy in selling the surplus of assigned amount units
(AAUs). In principle, the GIS is set up as a multi-lateral structure that is operationalized on
concentrating the implementation of the bilateral agreement. This is whereby the GIS is set up
by the government and reverting the funds into climate change activities, that advance the
climate mitigation efforts.
The GIS has created interest in promoting the environmental efficacy of the Kyoto
Protocol. It also aids in protecting domestic action cases and the development of technologies
in the buying countries. The high price allocated for the GIS is depending on the amount of
insulation provided for this market to enable covering the carbon prices. It also has the intention
to maintain access to and development of the future supply of low-cost allowances that meets
the Kyoto Protocol aims.
In my personal point of view, the green investment scheme is a scheme where the
process of selling the harmful gas emission to the buyer could convert the usage of their
products. This is aligned with the preservation of the environment where the harmful chemicals
emitted through the combustion are reusable to other technological processes. In addition, the
transfer technologies here are what attract the investor to invest. This can be said as killing two
birds with one stone. It is a good future strategy where an investor is planning to invest in the
Green Investment Scheme.
The concept of another man’s trash as another man’s treasure is adapted in this
situation. In Kyoto Protocol, it covers the six emissions of greenhouse gases namely Carbon
dioxide, Methane, Nitrous Oxide, Hydrofluorocarbons, Perfluorocarbons, and Sulphur
Hexafluorides. The deal is to emit less of these gases. This category could also be categorized
under renewable energy. Whereby the gas emitted would be used again in another form.
The ‘Green Investment’ could vary other than what is covered under the Kyoto
Protocol. The technology made for new Green products such as the Bio-Fuel where the
definition of Green here is more on producing a safe product for the environment.
 ‘Green Technologies’ are being implemented in every part in the world. Institutions
are making money while saving the environment. Some may say, that the Green Investment
Scheme is high in price. However, some scholar has agreed that in a long term the rate of
investment is multiplied. In short term, the ROI could be small. On the other hand, if it was
looked in a bigger picture and longer period of time, the ROI would be high.
There is research that has been carried out. This research has concluded that the
meaning carried out by ‘Green Investment’ are various by the mean term of the economic and
the institutional aspects. There are scandals that has been detected involving the changes of
unanimities such as biofuel and biogas and doubt in regards to waste, financial services, or
even in biodiversities and conservation. The ‘Green Investment Scheme’ could include the
means of Sustainable responsibility investing, responsible investing, sustainable investing, and
other concepts which are complementary to each other. The researcher has also suggested that
Extra consideration in terms of ecological, scientific evidence, religious tension, and ethical,
and also political issues to be taken into account. Another aspect is regarding the compliance
and fiduciary duty which includes the domestic law and regulations, international conventions,
voluntary industry codes, and good governance code that need to be assured in foregoing the
‘Green Investment Schemes.
The difference in technology carried out, could bring different returns to the investors.
As some investors would invest in terms of controlling the by-product form the factory such as
what is stated in the Kyoto Protocol. There are also other investors that would be willing to
contribute in the development of renewable and sustainable energy such as bio-fuel and other
bio-related product. The development of the environmentally product could last the investment
period to be longer. This is because the use of the biodegradable product is less harmful to the
environment. Usually, the waste and the byproduct from this could be converted to a new
product. This could save up in capital as the product could be reused and repurposed. As an
investor, using all of the current resources withing having to spend more on new things would
be a wonderful strategy.
On the other hand, there are also risks that is need to be paid attention to. Nowadays, it
can be seen that anywhere in the world has factories and new technologies that is being
implemented. This new development has helped in the innovation is Green Technology that is
aligned with the preservation of natural resources. The awareness on conservation has reach all
over the world including third-world countries.
3.0 CONCLUSION
The Green Investment strategy is indeed a future strategy that needs to be implied by
the world organization. It is not just going to be beneficial towards the earth but also in terms
of investment. The investment made would give a high return on investment rate. In some
developed countries could be emitting a high amount of CO2, while other institutions could
make use of the CO2 without the usage of natural resources.
In terms of business and trading, the technology transfer and conversion in the form of
greenhouse gases to the monetary scheme, it could be sold like a treasure. On the other hand,
there are questions that is need to be raised regarding the ‘Green’ Term. IN terms of the
definition of an institution, green should be emphasized more to its meaning and application.
More explanation to be made to the investors since the advancement in the technology
nowadays. The development of new ‘Green’ technology would also be known under the same
scheme of ‘Green Investment.
There are various of data obtained that has shown the positivity of the Green
Investment. In addition to the development and advancement of new technologies would help
in adapting through the Green Investment strategy. More and more innovations and developing
countries has taken part in the Green Investment project. The adaptation of the Green
Investment also has help to increase the FDI inflows of the country. This is where it helped the
country to gain more capital and investing more in the development of the Green Technology.
and lowering costs of these technologies assures them a better profitability (accounting for
green cost) in their fight with high carbon emission fossil fuels.