Full Title: Financing a Greener Planet: Bridging the Gap between Green Investment and Investors
Author(s): Eric G. Lee, Edward L. Morse
Publisher(s): Citi GPS
Publication Date: February 23, 2021
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Given the scale of the issue, Citi GPS has published Financing a Greener Planet in two volumes. This volume, Volume II — Bridging the Gap between Green Investment and Investors — is dedicated to the financial options available to close the massive climate investment gap. Volume I — Catalyzing Private Capital for a Net Zero Emissions World — focuses on the three factors which indicate we are at a tipping point on climate action — policy and regulation, innovation, and green momentum in the investor community.
This volume examines green financing options: from projects to primary and secondary markets draws on the expertise of financial professionals across Citi to cover a large part of the landscape of green finance. At the project level, this includes the financing of green projects at the asset level, via project finance (Chapters 1 and 2), venture capital (Chapter 3), and private equity. Efficiency investments can be financed on the basis of a stream of future savings, including the “Efficiency as a Service” model (Chapter 4). Development finance institutions (DFIs), export credit agencies (ECAs), and multilateral institutions help to finance green investments worldwide, including in developing countries (Chapter 5), helping to de-risk EM-related risks, including sovereign, political, and currency risks. Financial institutions and corporates can influence companies along the supply chain to decarbonize as part of reducing Scope 3 emissions (Chapter 6). At the primary and secondary market levels: green, social, and sustainability bonds are growing quickly, with KPI-linked bonds providing performance measures rather than use of proceeds criteria (Chapter 7).