0 Replies Latest reply: Sep 1, 2017 3:13 AM by kmzz RSS

    ADB proposed creation of national green financing vehicles via GFCF

    kmzz C4D Expert

      In earlier posts, we discussed questions of how to make the transition from a fossil based to a low-carbon economy (Iraq case) and how to shift more investment into addressing sustainability challenges we have (here on shifting to green bonds "only").

      The Asian Development Bank (ADB) has proposed the creation of national green financing vehicles to promote environmentally and financially sustainable infrastructure investments.

      In their report "Catalyzing Green Finance: A Concept for Leveraging Blended Finance for Green Development" (Aug 2017), the bank proposes an integrated approach to transforming countries’ financial systems so they could develop a large pipeline of bankable green infrastructure projects.

      Their concept idea is a green finance catalysing facility (GFCF), which would serve as a model for countries to create their own financing vehicles and implementation. A GFCF would leverage public funds to secure finance from private sources for green infrastructure investments. Public money would be used to mitigate investors’ risk and mobilise additional funds from the capital markets.

      Perhaps interesting to Mohammed Yousif Ahmed as a concept (despite Iraq is not an ADB member country).