8 ways green bonds can advance the EU Capital Markets Union agenda / come to our seminar in Brussels 9 July to learn more
Submitted on Fri, 2015-06-12 01:54By Beate Sonerud, Climate Bonds policy analyst
By Beate Sonerud, Climate Bonds policy analyst
Across Europe and a number of other regions bank recapitalisation pressures have led to a reduction in business and project lending - and thus reduced renewable energy lending.
This is a problem because the bulk of project finance (95% globally) comes from bank lending.
The development of a market for securitized renewable energy and energy efficiency assets and loans, allowing banks to quickly recycle limited loan capital, is going to be vital to ensuring banks deliver the project finance needed as we “green” energy systems.
The European Investment Bank (the EIB), the EU's bank, is the world's largest clean energy lender. True! Yet their lending is not (yet) enough to achieve the transition to a low-carbon economy the EU needs and has mandated by 2050.
1. BofA Merrill Lynch announced this week that it would offer World Bank (WB) green bonds to its wealth management clients.
Friends: I'm at the COP16 Conference in Cancun, aiming to talk about climate bonds as a mechanism to divert private investment to building a low-carbon economy. Here are six snippets from my first 24 hours: