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Table 5 Examples of green banking products and services

From: Transition towards green banking: role of financial regulators and financial institutions

CategorySub-categoryConcept and example
LoanCorporateLoans 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
PersonalLoans 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 financeLong-term, usually non-recourse and syndicated loans to finance large scale renewable energy projects and climate-resilient infrastructure projects
InsuranceAuto insuranceCharge lower insurance premium for eco-friendly actions such as using electric/hybrid vehicle and recycled parts when repairing a damaged vehicle
SecuritizationBondsUse green bonds including asset-backed securities (ABS) and mortgage-backed securities (MBS) to finance green projects and refinance existing green assets
WarehousingCarry out the warehousing of the assets until the target amount is reached
Equity investmentVenture capitalInvest in start-ups and venture firms developing green and climate-smart technologies
Private equity fundInvest in a fund dedicated at financing green projects
Brokerage and market- makingBrokerageBuy and sell green bonds and carbon credits on a client’s behalf to facilitate and promote green investments
Market-makingBuy and sell green bonds and carbon credits using a bank’s own accounts to help facilitate the market
Technical assistanceAdvisoryOffer advisory services with fees or on a pro-bono basis for financial structuring of a project
Capacity buildingProvide capacity building support and consulting services to borrowers or developers to better access a bank’s products