Effect of Green Finance on Cost Reduction

Research Proposal on Effect Of Green Finance On Cost Reduction 1
RESEARCH PROPOSAL ON “EFFECT OF GREEN FINANCE ON COST REDUCTION”
CASE STUDY ON ABU DHABI NATIONAL OIL CORPORATION TOGETHER WITH
ABU DHABI GAS INDUSTRY LIMITED IN UAE
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Research Proposal on Effect Of Green Finance On Cost Reduction 2
Table of Contents
Executive summary.........................................................................................................................3
Introduction......................................................................................................................................3
Literature review..............................................................................................................................3
Research methodology including the research aim.........................................................................5
Survey questions..............................................................................................................................6
Primary question.......................................................................................................................6
Secondary questions.................................................................................................................6
Research hypothesis.........................................................................................................................6
Survey Methodology.......................................................................................................................7
Ethical Issues...................................................................................................................................8
Population and samples...................................................................................................................8
Budget of Project.............................................................................................................................8
Time plan.........................................................................................................................................9
Project management.........................................................................................................................9
New and relevant research.............................................................................................................10
Conclusion.....................................................................................................................................10
List of References..........................................................................................................................11

Research Proposal on Effect Of Green Finance On Cost Reduction 3
Executive summary
This research proposal aims at examining impacts of green finance on cost reduction. The major
industries under examination on this work comprise of Abu Dhabi National Oil Corporation
together with Abu Dhabi Gas Industry Limited that operates in UAE. Moreover, this research
focuses on quantitative technique of research in gathering and analysis of data. This study aims
at offering general idea concerning the impacts of green finance on cost reduction among firms,
as the number of companies that use green finance is ever-increasing in UAE.
Introduction
Green finance refers to a financial device that consists of debt, equity, grant, sales, purchase, or
tool for managing risk in operations of organizations. Example of green finance comprise of
investment guarantee, commodity insurance, insurance product, derivative rate of interest or
credit. The credit is mostly issued under contract of an organization, individual, project, facility,
or private agency or public with environment that are real, verified, and additional to business
operations as usual (Mathews and Kidney 2012, p. 339). The green finance always affects
operations of different organizations in terms of increasing or decreasing rate of their
productions. Therefore, primary objective of this paper is to propose a research work on impacts
of green finance on cost reduction between two companies namely Abu Dhabi National Oil
Corporation together with Abu Dhabi Gas Industry Limited in UAE.
Literature review
Green finance provide lasting loan that plays a significant role in improving service delivery and
development of corporations around UAE. Furthermore, green finance has made Abu Dhabi
National Oil Company to actively integrate sustainable principles in their operations to help in

Research Proposal on Effect Of Green Finance On Cost Reduction 4
reducing operating costs (Gueldry and Liang 2016, p. 221). It has enabled the management of oil
industry to focus on reducing money that they use for management by ensuring that every action
that they take focus on saving amount of energy that they use in achieving their business goals.
Green finance has helped Gas Industry to reduce cost of operations and management by
improving ideas of innovation and production of new products to its clients. Green finance is not
often quick in development stage for operations and not always commercially viable, making its
technologies to be more expensive and riskier ventures. It helps in improving the advancement of
companies such as Abu Dhabi National Oil Company by reducing the cost of capital through
provision of debt or loans to improve its operations. Loans provided by green finance remain to
be the most common source of finance that this corporation uses to up-front and improve
ongoing project costs (Bracking 2015, p. 2341). Low-cost debt provided by green finance is
essential in improving business operations of Abu Dhabi National Oil Company. It has also
helped the oil and gas industry to grow in reaching new clients and markets within short duration
making it compete with other companies around UAE markets. Additionally, it has helped Gas
Industry Limited to strengthen different equity profile of projects because of the lower
repayment priority of the financial device (Özev 2017, p. 1001). Green finance offers a hybrid of
debt and finance, and it gives the lender to have the right to convert outstanding debt to equity
that helps in reducing costs in operations of the bank.
Through green finance, Abu Dhabi National Oil Company has been able to reshape its economy
as well as consolidate different state-owned organizations to cope with low prices of oil.
Moreover, Green finance has helped Abu Dhabi State Oil Corporation to reduce its costs of
management with operations by improving its composition of business portfolio (Hwang, Lee,
and Müller 2017, p. 661). It has helped the company in regulating risks that do occur during