Raising US$23 Trillion : Greening Banks and Capital Markets for Growth
In December 2015, at the Conference of the Parties 21 (COP 21) in Paris, France, 196 countries came together to forge a climate change agreement that pledged to keep global warming to 2 degrees Celsius or less. To bring the world to this 2-degree t...
| Main Authors: | , , |
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| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/995131540533377620/Raising-United-States-U-S-23-Trillion-Dollars-Greening-Banks-and-Capital-Markets-for-Growth-G20-Input-Paper-on-Emerging-Markets http://hdl.handle.net/10986/30919 |
| Summary: | In December 2015, at the Conference of
the Parties 21 (COP 21) in Paris, France, 196 countries came
together to forge a climate change agreement that pledged to
keep global warming to 2 degrees Celsius or less. To bring
the world to this 2-degree track, the international energy
agency estimates that the cumulative investments needed in
energy supply and efficiency reach United States (U.S.) 53
trillion dollars. Based on the International Finance
Corporation (IFC) analysis of U.S. 23 trillion dollars in
climate-smart investment opportunities in emerging markets
between 2016 and 2030, this paper analyzes the role of the
banking sector and debt capital markets to provide the
financing necessary. Banks will need to rely on debt capital
markets to help with the necessary maturity transformation
to match primarily longer dated assets with long-term
liabilities. The paper concludes with several case studies
that showcase how lenders leverage debt capital markets to
increase their lending capacity to meet the significant
financing needs that the climate transition presents. |
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