Green Securitisation: unlocking finance for small-scale low carbon projects

The document explains how green securitisation transforms pools of illiquid low-carbon assets into tradable securities, improving access to and lowering the cost of capital for small-scale projects. It notes that green Asset-Backed Securities (ABS) grew to USD 5bn in 2016 and could reach USD 280-380bn annually by 2035. The author recommends public sector interventions, such as providing guarantees for junior tranches and supporting the standardisation of green loan contracts, to mitigate risks and drive market growth.

• Green Asset-Backed Securities (ABS) issuance grew from USD 1.9 bn in 2014 to approximately USD 5bn in 2016, representing 6% of the market share.
• The OECD projects that annual green ABS issuance for low-emission vehicles, energy efficiency, and renewable energy could reach between USD 280 billion and USD 380 billion by 2035.
• Green securitisation benefits small-scale low carbon projects by aggregating loans to reach adequate deal sizes for bond markets and potentially offering a lower cost of capital than bank financing in high interest environments.
• The public sector can scale green securitisation markets through specific policy actions, including developing consistent 'green' definitions, offering guarantees for junior and mezzanine tranches to attract institutional investors, and supporting financial warehousing of standardised loans.

APA

Climate Bonds Initiative (2017). Green Securitisation: unlocking finance for small-scale low carbon projects. https://www.climatebonds.net/files/drupal-files/files/March17_CBI_Briefing_Green_Securisation.pdf

Chicago

Climate Bonds Initiative. Green Securitisation: unlocking finance for small-scale low carbon projects. 2017. https://www.climatebonds.net/files/drupal-files/files/March17_CBI_Briefing_Green_Securisation.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Green Securitisation: unlocking finance for small-scale low carbon projects |date=February 2017 |url=https://www.climatebonds.net/files/drupal-files/files/March17_CBI_Briefing_Green_Securisation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2017green, author = {{Climate Bonds Initiative}}, title = {{Green Securitisation: unlocking finance for small-scale low carbon projects}}, institution = {Climate Bonds Initiative}, year = {2017}, month = feb, url = {https://www.climatebonds.net/files/drupal-files/files/March17_CBI_Briefing_Green_Securisation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }