From: Transition towards green banking: role of financial regulators and financial institutions
Category | Sub-category | Concept and example |
---|---|---|
Loan | Corporate | Loans to micro-, small-, medium- and large-sized enterprises for them to invest in green projects such as renewable energy, energy efficiency, forestry and climate-smart agriculture |
Personal | Loans to individual clients for them to install small scale renewable power and more energy efficient and climate-smart equipment, appliances, houses and vehicles and purchase climate-resilient seeds | |
Project finance | Long-term, usually non-recourse and syndicated loans to finance large scale renewable energy projects and climate-resilient infrastructure projects | |
Insurance | Auto insurance | Charge lower insurance premium for eco-friendly actions such as using electric/hybrid vehicle and recycled parts when repairing a damaged vehicle |
Securitization | Bonds | Use green bonds including asset-backed securities (ABS) and mortgage-backed securities (MBS) to finance green projects and refinance existing green assets |
Warehousing | Carry out the warehousing of the assets until the target amount is reached | |
Equity investment | Venture capital | Invest in start-ups and venture firms developing green and climate-smart technologies |
Private equity fund | Invest in a fund dedicated at financing green projects | |
Brokerage and market- making | Brokerage | Buy and sell green bonds and carbon credits on a client’s behalf to facilitate and promote green investments |
Market-making | Buy and sell green bonds and carbon credits using a bank’s own accounts to help facilitate the market | |
Technical assistance | Advisory | Offer advisory services with fees or on a pro-bono basis for financial structuring of a project |
Capacity building | Provide capacity building support and consulting services to borrowers or developers to better access a bank’s products |