Next Season’s Green Bond Harvest : Innovations in Green Credit Markets
Capital markets have been a source of funding for green investments for a number of years, but until recently, financing was predominantly from equity. Private equity, venture capital, and government funding were the most accessible sources of capi...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
International Finance Corporation, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/159941486382042840/Next-season-s-green-bond-harvest-innovations-in-green-credit-markets http://hdl.handle.net/10986/26055 |
| Summary: | Capital markets have been a source of
funding for green investments for a number of years, but
until recently, financing was predominantly from equity.
Private equity, venture capital, and government funding were
the most accessible sources of capital when green
technologies such as solar and wind were in early stages of
development. More recently, as these technologies have been
tested, proven, and refined, funders have naturally
progressed along the capital structure towards public equity
and debt financing to support growth and scale. At the same
time, leading financial institutions have provided impetus
for expanded green investing. International Finance
Corporation (IFC) and the Kellogg School of Management have
collaborated to author this paper which attempts to cover
the bounty of credit tools available for harvesting by
issuers and sponsors, with the aim of attracting new
investments to green industry. This paper is the first in a
series to proffer avenues to enhance the financial
environment towards addressing this gap. This paper presents
a brief overview of efforts that can circumvent these
barriers by introducing a mix of innovative products to
attract different kinds of fixed income investors and draw
more private capital into funding green technologies. |
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