ABSTRACT
The Green Fund System (GFS) was introduced in 1992 as a joint operation between the Dutch government and the financial sector. In the Netherlands the financial sector is actively involved in implementing the government's environment policy, and it plays an important role in mechanisms to promote investments in clean technology and energy-saving equipment. The interest levels of green loans and those issued by commercial institutions are linked to some extent. The government had various objectives in introducing the GFS. In the Netherlands the basic quality of the environment is maintained through the use of a system of permits, and through the enforcement of environmental standards. A bank that intends to develop a GF is subject to the national regulations governing financial companies. The environmental aspects of GFS projects are checked by the Ministry of the Environment or its agencies during the processing of Green Certificates and during the term of the green loan.
