Offering green products and services | Mainstreaming Climate in Financial Institutions

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Why? Many financial institutions are developing and using a variety of targeted financial instruments to finance climate-related activities and investments to seek out new investment opportunities.

How? While “green bonds” are the climate-related products the most well-known, institutions have also developed climate-related loans or intermediated debt financing products. These products typically use climate-related eligibility criteria. This in turn implies that institutions assess investments against these criteria – as well as develop a system for ex-ante assessment, monitoring, reporting and verifying to ensure that criteria are met. Additionally, institutions may use a robust external auditing of climate-related criteria, such as via second party opinions.

Key resources

Green Bonds: what contribution to the Paris Agreement and how to maximize it?

Operationalization Framework on Aligning with the Paris Agreement

Green bonds: Experience Sharing from Issuers and Investors

Finance instruments and engagement strategies for the energy transition

Japan International Cooperation Agency (JICA) promotes climate change-related projects through program loans

EIB’s experience shows that Green Bonds can be a market-based process to promote accountability and engagement in climate finance

YES BANK through its Green Bonds, has shown it as an accepted instrument and has encouraged responsible investment in debt capital markets in India

EBRD – Pathways to Paris: Development of Green Products

TSKB’s Turkey & CEEMEA regional Green/Sustainable Bond