Securitized Products

This guide from the Climate Policy Initiative describes the use of securitized products—such as asset-backed securities (ABS) and collateralized loan obligations (CLOs)—to mobilize finance for climate and energy transitions by pooling financial assets into tradable securities.

• Securitization enables the recycling of capital and increased liquidity by pooling assets like loans and receivables into tradable securities, often structured through special purpose vehicles (SPVs). This mechanism is applied across various sectors: transportation (low-carbon vehicle loans), buildings (green mortgage securitizations for retrofits), water (infrastructure loans), and renewable energy (solar and wind loan securitizations).
• The document highlights specific commercial and public examples of securitized products: Brighte Green Trust in Australia issued a AUD 190m green ABS for solar and battery receivables; Sun King in Kenya raised USD 156m for 1.4m solar products; the Climate Investment Fund Capital Markets Mechanism (CCMM) issued a USD 500m bond; and the AfDB Room2Run used synthetic portfolio securitization to free up capital for African infrastructure.
• The implementation of securitized products requires varying levels of capacity and regulatory frameworks. For practitioners, this ranges from basic understanding of SPV setup to the ability to design tranches and negotiate investor terms. For regulators, it involves moving from basic recognition of transactions to establishing tailored disclosure standards, taxonomies for green assets, and climate impact monitoring systems.

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} }