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This section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the PPPLRC at ppp@worldbank.org.

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Emission Reduction Program
Mobilizing ERC Finance
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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.

 

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Financing structures to address key risks

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.

Sections

Equity: The London Stock Exchange and Foresight… Equity: The London Stock Exchange and Foresight Sustainable Forestry
Fund: Liveligoods Carbon Fund 3 The Livelihoods Carbon Fund 3 (LCF3) launched in 2021 and combines equity capital from some international investors… more
Debt: Example of Emission Reduction-Linked Bond… Example of Emission Reduction-Linked Bond from Vietnam.
Note/s:

This section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the PPPLRC at ppp@worldbank.org.