The Scope for MDB Leverage and Innovation in Climate Finance

This note, prepared as background for the G20 submission, explores the potential for Multilateral Development Banks (MDBs) to increase the volume of climate financing by leveraging and intermediating resources, through two main avenues: leveraging shareholder capital through the MDBs non-concessional windows, by raising debt from capital markets to finance climate investment; and mobilizing and 'pooling' concessional flows to support climate investment beyond the MDBs own balance sheets. The note is organized along these two lines, with the aim of providing some insights into the feasibility for MDBs to mobilize resources to leverage a significantly larger volume of climate financing assistance. The next section of this note provides information on how MDBs can support concessional flows to climate investments through pooling of external concessional flows beyond traditional balance-sheet capital. Leveraging shareholder capital and mobilizing and-pooling concessional flows are two potential avenues through which MDBs can leverage and intermediate resources to ultimately increase the volume of climate financing. The experience gained by the MDBs and their clients and donors from implementing these financing arrangements should provide helpful lessons for the development community as it considers how to develop the green climate fund and other future climate change initiatives.

Bibliographic Details

Main Authors:	Basu, Priya, Finneran, Lisa, Bishop, Veronique, Sundararaman, Trichur
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2011-10-31
Subjects:	ADMINISTRATIVE COST, ASSETS, BALANCE SHEET, BASIS POINTS, BENEFICIARIES, BOND, BOND ISSUANCE, BORROWER, BORROWING, CAPITAL ADEQUACY, CAPITAL FLOWS, CAPITAL INVESTMENTS, CAPITAL MARKET, CAPITAL REQUIREMENT, CAPITAL STRUCTURES, CARBON FINANCE, CARBON MARKET, CARBON TECHNOLOGIES, CERTIFIED EMISSION REDUCTIONS, CLEAN TECHNOLOGY, CLIMATE, CLIMATE CHANGE, CLIMATE CHANGE MITIGATION, CREDIT LOSSES, CREDIT RATING, CREDITS, CREDITWORTHINESS, CRISIS LENDING, CROSS SUBSIDIES, DEBT, DEBT INVESTMENT, DEBT ISSUANCE, DEVELOPING COUNTRY, DEVELOPMENT BANK, DEVELOPMENT FINANCE, DEVELOPMENT FINANCE INSTITUTION, DISBURSEMENT, DISSOLUTION, DONOR FUNDING, DONOR FUNDS, EARNINGS, ECONOMIES IN TRANSITION, ECONOMIES OF SCALE, ELECTRICITY, EMERGING MARKETS, EMISSION, EMISSION REDUCTION, ENERGY EFFICIENCY, EQUITY FUNDING, EQUITY INVESTMENTS, EQUITY PARTICIPATION, EQUITY RETURNS, FINANCE CORPORATION, FINANCES, FINANCIAL ASSISTANCE, FINANCIAL CAPACITY, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARY, FINANCIAL PRODUCTS, FINANCIAL VIABILITY, FINANCING COSTS, FINANCING FACILITY, FINANCING NEEDS, FINANCING REQUIREMENTS, FISCAL CONSTRAINTS, FLOW OF FUNDS, FOREST INVESTMENT, FORESTRY, FORESTS, FUNDING SOURCE, GENERATION CAPACITY, GLOBAL ECONOMY, GLOBAL ENVIRONMENT FACILITY, GOVERNANCE STRUCTURE, GRANT FUNDING, GREENHOUSE, GREENHOUSE GAS, GREENHOUSE GAS EMISSIONS, HOUSEHOLDS, IMMUNIZATION, INSURANCE, INTEREST RATES, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCE, INVESTMENT BANK, INVESTMENT FUND, INVESTMENT INCOME, INVESTMENT PLANS, INVESTMENT RISK, INVESTMENT VEHICLE, KEY CHALLENGE, LAND DEGRADATION, LENDING LIMITS, LENDING SPREAD, LEVERAGE, LOAN, LOAN MATURITY, LOAN REPAYMENTS, LOW-CARBON, MANDATE, MARKET INTEREST RATES, MINIMUM CAPITAL REQUIREMENT, MULTILATERAL DEVELOPMENT BANKS, OPERATING COSTS, OUTREACH, OUTSTANDING LOANS, PLEDGES, PORTFOLIO, PORTFOLIO RISK, PRINCIPAL REPAYMENTS, PRIVATE FINANCE, PRIVATE FINANCING, PRIVATE INVESTMENT, PUBLIC FINANCE, RATING AGENCIES, RECAPITALIZATION, RECIPIENT COUNTRIES, REGIONAL DEVELOPMENT BANKS, RENEWABLE ENERGY, REPAYMENTS, RESERVES, RETURN, RISK CAPITAL, RISK MITIGATION, RISK PROFILE, SAVINGS, SHARE OF EQUITY, SHAREHOLDER, SILVER, SUSTAINABLE FOREST, SUSTAINABLE FOREST MANAGEMENT, TRANCHES, TRANSPORT, TRUST FUND, TRUSTEE, WIND, WITHDRAWAL,
Online Access:	http://documents.worldbank.org/curated/en/325611468313510220/The-scope-for-MDB-leverage-and-innovation-in-climate-finance http://hdl.handle.net/10986/27273
Tags:	Add Tag No Tags, Be the first to tag this record!