Putting People and Planet at the Heart of Green Equity
Summary
This paper examines 'green equity'—the use of equity investments to ensure climate-compatibility of projects under the Paris Agreement—and 'greening equity,' a strategy used by the International Finance Corporation to reduce coal exposure in its client financial institutions.
Key insights
- The document defines 'green equity' as the use of equity investments or shares in a client to promote environmental sustainability and ensure that projects and programmes are climate-compatible, specifically in alignment with the mandates of the Paris Agreement.
- Examples of 'green equity' include investments by dedicated climate funds or public development banks into private equity funds that support renewable energy, or acting as anchor investors in mitigation or adaptation actions to signal and leverage additional financial inputs.
- The International Finance Corporation (IFC), the private sector arm of the World Bank, employs a 'greening equity' strategy. This involves using its equity stakes in financial institutions and commercial bank clients to mandate the elimination and reduction of coal exposure, although this strategy does not cover deforestation or exposure to oil and gas.
Cite the original document
- APA
- TrendAsia (2021). Putting People and Planet at the Heart of Green Equity. Trend Asia. https://trendasia.org/en/putting-people-and-planet-at-the-heart-of-green-equity/
- Chicago
- TrendAsia. Putting People and Planet at the Heart of Green Equity. Trend Asia, 2021. https://trendasia.org/en/putting-people-and-planet-at-the-heart-of-green-equity/.
- Wikipedia
- {{cite report |last1=TrendAsia |title=Putting People and Planet at the Heart of Green Equity |publisher=Trend Asia |date=14 October 2021 |url=https://trendasia.org/en/putting-people-and-planet-at-the-heart-of-green-equity/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{trendasia2021putting, author = {TrendAsia}, title = {{Putting People and Planet at the Heart of Green Equity}}, institution = {Trend Asia}, year = {2021}, month = oct, url = {https://trendasia.org/en/putting-people-and-planet-at-the-heart-of-green-equity/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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