What green offerings are made by corporate and investment banking?

Green project finance- Service divisions or team have been created by banks to devote a large-scale renewable energy finance projects where groundbreaking finance measures are employed for large-scale clean fuel and renewable energy projects.

Green securitization- Variety of securitization techniques have been created like Forests bonds.

Green venture capital and private equity- Environmental issues are gathering more importance in terms of financing opportunities. Capital market and banks are becoming a profitable assistant with IPOs (Initial Public offering) to provide clean technology, developing carbon credits, and to promote environmental products and services. A capital base is also established by banks for environmental projects by specialized private equity units.

Green indices- Indices are very well-known features available from banks that are taking future environmental opportunities and threats into account. Merrill Lynch is one of the examples that can be considered for developing an energy efficiency index that solely focuses on energy conservation and management on the demand side.

Carbon commodities- An arrangement by EU Emissions Trading Scheme that used over 12,000 European industrial sites under carbon constraint is serving the client’s compliance needs where a tradable product can be supplied to the bank’s desks with most of the carbon credits.

Source:- Handbook of Green Finance by Jeffrey D. Sachs et al.

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