Will ‘Green Finance’ Save Our Climate? – Interview with Danetha Doe

If you’ve been paying attention for the last 10 to 100 years, you’ll clearly see that humanity has had a devastatingly negative effect on our climate. Wildfires are raging across forests, floods are enveloping entire communities, and politicians can’t agree on what to do about it – despite the many solutions from scientists. 

One such issue would be investing in climate change or ‘green finance.’ While some in the higher echelons of the financial world think investing in climate change would be a ‘waste of time,’ there are others who are absolutely certain of its need. 

Our friend Danetha Doe, financial expert and creator of Money & Mimosas, took the time to answer our questions about green finance and its critical importance when coming to protecting our climate and our future. 

Do you believe that green finance is necessary for our future?

Investing in climate change infrastructure is absolutely necessary. According to the 2021 Banking on Climate Chaos report, we have under 10 years to cut global climate pollution in half in order to accomplish what the UN’s Intergovernmental Panel on Climate Change says is necessary to avoid the catastrophic consequences of exceeding 1.5°C of warming. 

That means fewer than 10 years to transform almost every aspect of our industrial economies. Therefore, it is critical that we prioritize investments in climate change infrastructure.

What role can financial institutions play in protecting our climate? 

Financial institutions play a huge role in climate change infrastructure efforts. They can choose to be a positive form by investing in green solutions or a negative force by investing in fossil fuels. 

According to the 2021 Banking on Climate Chaos report, 60% of the world’s largest private sector banks financed fossil fuels to the tune of $3.8 trillion. If that money had instead gone towards climate change infrastructure, we would be on a much better trajectory as a globe.

How can the average person make a difference if they wanted to invest in green finance? 

I am a big fan of investing in transparent solutions such as Steward and Carbon Collective’s Green 401(k) plan. 

Steward gives the average person the opportunity to build wealth by supporting regenerative agriculture by being a lender to local, sustainable farmers. 

Carbon Collective conducts extensive research to determine if a company is genuinely green and meets its ESG standards, before adding it to your 401K options. Most 401K plans invest in fossil fuels or companies that are not genuinely green.

How can we help keep these large financial institutions accountable? 

Media can help play a role. Journalists like you and Owner’s Mag can do research on financial institutions, ask executives tough questions and report back to the public. Raising the public’s awareness will help hold financial institutions accountable.

The United States just passed the Inflation Reduction Act, which addresses climate change in a big way, how do you think this will help the fight to protect our climate?

The passing of the Inflation Reduction Act is a monumental moment in our history. While there is still a lot of work to be done, this is moving us in the right direction regarding climate change.

I believe the average person in the United States will be able to benefit from the Act personally. The bill contains many tax incentives to encourage the average American consumer to switch to renewable energy in the home.

I’m disappointed in the fact that there are certain hedge fund companies that will not be subject to the 15% corporate tax. I would also like to see more penalties assessed against corporations that do not switch from fossil fuels to renewable energy.
We send a big, big thank you to our friend Danetha Doe. Remember to check out Money & Mimosas for more personal finance advice.