Financing structures to address key risks

Financing Structures to Address Key Risks

Find three recent examples that demonstrate some of the latest advances in structuring ERC finance.

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Financing Structures to Address Key Risks, businessman planning for green business strategy in office

Watch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below, or visit Strategic Guidance for Country System Assessments, Guidance for Countries in Assessing ERC Projects, and Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.

Though the ERC market is still in the lower half of its financing curve, see Figure 5, there are some promising examples of financial structures that have successfully tapped into capital markets or a highly diverse base of international investors.

Most have raised capital on a small to moderate scale (e.g., up to about $150M). While not yet reaching the scale required to meet the increasing demand for ERC financing, various examples demonstrate promising elements of financing structures to address key risks that could be used in other contexts to help unlock greater levels of private sector finance.

Overviews of three recent examples that demonstrate some of the latest advances in structuring ERC finance comprise the remainder of this chapter.

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