Green Finance

Green Finance

Today’s production and consumption patterns strain both the climate and the environment – from the local to the global levels. The use of existing low-emission and environmentally friendly technologies depends upon financing possibilities suited to the particular characteristics of green investment. In many countries, however, the markets and conditions for sustainable investment are currently under-developed. Financial institutions, investors, and businesses often lack the necessary capabilities to translate the risks and opportunities of green growth into the corresponding investments.

adelphi works with various stakeholders on the design and implementation of green investment and financing approaches worldwide. We offer advisory services for the implementation of credit lines, conduct research on political and economic framework conditions for green finance, and organize dialogue events and trainings, amongst other things. We moreover support companies in developing countries and emerging markets in the development of financing strategies and advise government institutions on how to access international climate finance.

  • Businesses need capital for green investments. Specially tailored financial products and services can help to direct available funds and foster a low-carbon, sustainable economy. adelphi supports development banks and their national partner banks in developing, providing, and marketing green financial products. We prepare feasibility studies and advise banks in determining credit criteria and in setting up systems for impact monitoring. We also conduct capacity building measures for bank management and employees.

    Excellent knowledge of the demand side is essential for providing high-quality advisory services to the partner institutions. Together with local experts, we are also helping businesses and municipalities in securing capital for their green investments. In parallel, adelphi supports the growth of green and sustainable capital markets, e.g. by developing criteria for sustainable investment.

  • By actively managing the environmental and climate risks of their operational activities and portfolios, financial institutions and investors can encourage sustainable development while simultaneously becoming more resilient themselves. However, they often lack the necessary information, skills, and structures to be able to address such risks.

    adelphi advises financial service providers on the development of environmental guidelines and on setting up management systems to account for environmental, social and governance risks (ESG) in their portfolios. Particular focus is on taking long-term ESG risks into account and on building up the financial institutions’ capacities for mitigating green risks. For this purpose, we also assess the sustainability performance of investment portfolios and contribute to the establishment of networks bringing together representatives of sustainable financing.

  • The availability and attractiveness of green finance depends on the legal and regulatory frameworks of the financial system. Possible instruments to promote the “greening” of the financial industry include, for example, green bond standards and financial incentives for green investors. Green public funds and financial institutions can act as examples for other market actors and channel green capital to where it is needed the most.

    adelphi works with governments, financial institutions, development agencies and other stakeholders to identify opportunities and risks for green and sustainable finance and to provide policy recommendations for the development of the necessary framework conditions. We design criteria and develop standards for green financing, and we contribute to the development of institutions for and institutional knowledge on green finance. We also support governments in setting up relevant criteria for international climate finance.