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FINANCING ISSUES OF GREEN INVESTMENTS IN THE AGRICULTURAL SECTOR

Anita Csiba, Gergo Wenner, Árpád Ferencz, Zsuzsanna Deak

First published: 2025-12-27https://doi.org/10.5593/sgem2025v/4.2/s20.77View metrics

Abstract

Nowadays the green finance is a very actually topic, which is becoming increasingly important in the agricultural sector. The sustainable agricultural production is more and more important in the European Union. The requirements and regulations are becoming stricter therefore we have to use sustainable technologies in the agricultural production and we need more and more green investments and financial sources to establish sustainable plants. In this study, we examined a case study and calculated the costs and the return on investment of a newly established poultry manure fermentation plant. The main examined parameters, that we used were the Payback Period and the Return on Investment. Among the so-called dynamic indicators that take into account the time value of money, the values of the Net Present Value (NPV), the Internal Rate of Return (IRR) and the Profitability Index are analyzed. Experts frequently use the Payback Period as a static indicator because it provides information quickly regarding the rate of return on the investment. It shows the time it takes to recover the investment from the income generated over the life of the asset. The payback period is the most critical period in the life of the asset, when the level of economic risk is greatest. It is worth considering investments to be made from own capital and possibly with subsidies, as the latter can significantly reduce the payback period. Another static indicator is the Return on Investment. This indicator expresses the expected annual return on the equity invested. We can compare the investments, that can we realize with our own capital investment and those, that require subsidies with the mentioned methods applying.

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Publication details

Title
FINANCING ISSUES OF GREEN INVESTMENTS IN THE AGRICULTURAL SECTOR
Authors
Anita Csiba, Gergo Wenner, Árpád Ferencz, Zsuzsanna Deak
Proceedings
25th International Multidisciplinary Scientific GeoConference Proceedings SGEM 2025, Energy and Clean Technologies
Publisher
STEF92 Technology
Year
2025
Pages
703-716
SWS Citekey
Csiba202520703716
ISSN
1314-2704; 13142704
ISBN
9786197603934
Language
en
Publication type
Conference Paper
Proceedings contents
Open official contents
Keywords
green financegreen investmentsgreener agriculture
References15

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