IORDACHI-1-2024
SUSTAINABLE FINANCING OF THE BUSINESS ENVIRONMENT IN
THE REPUBLIC OF MOLDOVA: CHALLENGES AND SOLUTIONS
Victoria IORDACHI, Assoc. Prof., PhD
National Institute for Economic Research, AESM
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Universal Decimal Classification: 658.14/17:504.3
JEL Classification: Q56, G21, G28
Abstract
In a rapidly changing world, sustainable financing has become a necessity for economic and social development. With limited natural resources and growing environmental impact, the imperative for sustainable economic growth is globally recognized. Despite increased interest and initiatives in sustainability, significant challenges persist, including climate change, energy security, and natural resource depletion. This paper explores the landscape of sustainable financing in the Republic of Moldova, analyzing current practices,
challenges, and opportunities. Drawing on fact-finding, comparative analysis, and correlation studies, the research methodology assesses the state of sustainable financing in Moldova. The literature review encompasses legislative acts, monographs, articles, and reports from international financial institutions. Findings reveal limited access to international funds through local banking institutions, hindering the development of green lending activities. To address this, increased cooperation with international investment funds is recommended, alongside the promotion of green lending products by local banks. Furthermore, there is a call for mandatory environmental management reporting by commercial banks to enhance transparency and accountability. Given the significant role of Small and Medium-sized Enterprises (SMEs) in Moldova's economy, the imperative arises to make their operations more environmentally sustainable. This entails reducing their environmental footprint and opening up avenues to international markets. Moreover, transitioning towards renewable energy sources and adopting energy-efficient technologies is underscored as vital for decreasing reliance on fossil fuels and addressing climate change. In essence, cultivating a culture of green financing in Moldova requires collaborative efforts, cooperation, and responsible investment practices. These measures are essential to safeguard environmental sustainability while promoting economic growth.
Keywords: green financing, circular economy, sustainability, Sustainable Development Goals, sustainable
