Climate Financing

Conference paper

Abstract

Renewables are often funded through specialised financing facilities that rely on subsidies or access to soft loans. This approach has at least two drawbacks. Firstly, compliance with environmental standards becomes a cost, with access to financing as its sole reward, a benefit that diminishes when excess liquidity characterises the financial market; and secondly, sustainable practices and how they influence business continuity are ignored, much less rewarded, as highlighted in BDO Unibank’s experiences. A number of cases are examined to highlight some innovative ways in which climate financing is being brought into the mainstream, among them Indonesia’s coal-to-geothermal swap concept or Aboitiz Renewables’ Tiwi Makban’s climate bond.

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Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.IESE Business SchoolUniversity of NavarraBarcelonaSpain

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