1. The Indian government is planning to use the proceeds from their new coal tax to help set up a green bank to fund renewable energy projects. Now that's a good idea for countries like the US, Australia and Brazil!
2. New article: We can learn from Japanese state banks how to use Climate Bonds to fund the transition to a low-carbon economy.
Climate Bonds Advisory Panel member Prof. John Mathews argues that Governments should use the model of setting up Japanese state banks for the development of a low-carbon economy, using them as marketplace aggregators, channelling savings from insurance and pension funds to multiple, policy-driven, investment destinations, small and large.
For investment destinations identified as being essential to transitioning to a low-carbon economy, investor risks are kept low through careful discrimination of projects eligible for funding (unlike the case of open capital markets) and through indirect government guarantees in the form of tax breaks and subsidies to eligible projects.
Prof. Mathews muses that perhaps some Treasuries would be more comfortable with licencing banks rather creating new ‘Green Banks’ using public funds.
