Securitized Products

The document describes how securitization—pooling assets like loans into securities via special purpose vehicles—increases liquidity and capital recycling for low-carbon transportation, buildings, water, and renewable energy. It details commercial and public examples, the role of technical assistance, and the capacity requirements for issuers and regulators to scale these instruments.

• Securitized products, such as Asset-backed securities (ABS), Mortgage-backed securities (MBS), and collateralized Loan obligations (CLOs), enable the recycling of capital and access to institutional investors by pooling assets like low-carbon vehicle loans, green mortgages, and solar/wind loans.
• Commercial and public examples of securitization include the Brighte Green Trust in Australia (AUD 190m green ABS for solar and battery receivables), Sun King in Kenya (USD 156m for solar products), the Climate Investment Fund Capital Markets Mechanism (USD 500m bond), and the AfDB Room2Run synthetic portfolio securitization.
• The timeline for issuing these products varies by type, with commercial green ABS taking 6–12 months and donor-supported pilots taking 12–18 months due to approval and structuring processes.

APA

Climate Policy Initiative (2025). Securitized Products. https://www.climatepolicyinitiative.org/toolkit-instrument/securitized-products-3/

Chicago

Climate Policy Initiative. Securitized Products. 2025. https://www.climatepolicyinitiative.org/toolkit-instrument/securitized-products-3/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Securitized Products |date=21 October 2025 |url=https://www.climatepolicyinitiative.org/toolkit-instrument/securitized-products-3/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025securitized, author = {{Climate Policy Initiative}}, title = {{Securitized Products}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/toolkit-instrument/securitized-products-3/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }