GCPF and 16 financial institutions pave path towards green lending
23 May 2019
On 6 May 2019, the Global Climate Partnership Fund held a workshop on green lending at the United Nations Conference Center in Bangkok with over 40 participants joining from 16 financial institutions within the region. For three days the participants explored the journey of paving the path toward green lending in their respective markets, client segments and institutions.
MEET the challenge
“Climate change is a global challenge. To mitigate it there is an urgent need to invest in green technologies. Local banks have an important role to play in this. The good news is: Green lending is also an exciting business opportunity. Still, it’s new, and banks tend to shy away from it because of the perceived complexities. The goal of this workshop was to ease their journey towards green lending and to build a supporting network around it.”
Antoine Prédour, Head of Global Climate Partnership Fund, responsAbility
BUILD a network
For many institutions, entering the space of green lending is like peeling off the highway towards climate change onto a path less traveled; it takes maneuvering and feels risky, but is also the obvious way forward. By building a community around green lending and through peer to peer learning, common challenges are tackled in a more efficient way.
Green technological advances are now mainstream resulting in lower costs, higher efficiency and a more attractive investment case. GCPF provides its partner institutions with a tool box of insights into green technologies and approaches to identifying market drivers and barriers. It also brings portfolio screening techniques to aid the participants in exploring opportunities for green lending in their institutions and their markets.
GAIN expert insights
‘Every expert was once a beginner’. Supported on that premise, the event hosted experts of various backgrounds to share their learning journeys and provide participants with tricks and tools toward success. As part of the leading technology pack experts dove into the world of ESCOs, Fintech and Blockchain. They shared inspiring industry success stories using cutting edge technologies. One expert speaker showed his innovative spirit by asking to be compensated through the purchase of mangrove trees which store significantly more carbon than their land-based counterparts and protect coastlines. More info on these carbon storing champions here
Backed by peer support, a wider understanding of green technologies and new insights into industry trends, the participants developed a green lending implementation plan. This plan lends itself as a starting point to build upon with all the necessary stakeholders. For additional support and resources GCPF provides Technical Assistance as well as the Green Lending Forum.
“Institutions are already expressing interest in portfolio screening support and ESCO financing opportunities. To keep this momentum going I recommend taking advantage of the Green Lending Forum and to continue the peer learning via this new fantastic network. In response to several inquiries about green technology lending we will offer a study tour where we will visit institutions that are green lending champions for deeper insights and learning.”
Sathish Dhanapal, Senior Energy Specialist, responsAbility