Designing a green financing programme
A four-workstream programme to help a lender build green finance, from taxonomy and products to a green fund structured as an AIF, which went on to open a mandate linked to a development finance institution.
- Sector
- Green finance
- Scope
- Four workstreams
- My role
- Programme design
The problem
Green capital is available, but small green borrowers are hard to reach and harder to underwrite. The client needed a full programme to originate and report green loans credibly.
The approach
Taxonomy and eligibility
Define which assets and activities count as green and how each loan is tagged.Products
Design loan products with tenors and repayment matched to the asset's savings.A green fund
Structure a green fund as an alternative investment fund to pool blended capital.Measurement and reporting
Set up impact metrics and allocation reporting that hold up to verification.
Who it served
The lender
A ready programme instead of scattered pilots.Investors
A clear structure to put green capital to work.
The outcome
The programme work opened a new mandate linked to a development finance institution.