Banyan Infrastructure’s Post

The emerging model that looks to be best placed for GGRF in the United States involves leverage pooled loan funds, a strategy that already happens to be gaining traction with municipal and state agencies as a means to fund initiatives aimed at reducing greenhouse gas emissions.

📌 Fund With a heart 📝by Amitanshu Verma & Nancy Pathak 🏞️ "Banks need to fully assess the risks and engage with the local communities and seek free, prior and informed consent before investing in projects. Banks and FIs need accountability mechanisms for all their project financing operations and not only for those demarcated as ‘green’. The assessment of ‘financial risk’ before disbursing loans needs to be accompanied by an evaluation of the ‘impact risk’ of a proposed project on climate and communities." https://lnkd.in/gXWuGRmW

Let's have a conversation about Result Based Finacing (RBFs). Specifically, we need to decide how we define the "R" in the #RBFs. Results. That's the problem. Why? Because we tend to confuse the outputs for results. then they are not results. A connection to the grid is an output. While the use of electricity [after the cinnection] is the result. And yet we count the outputs for the results. I do think we make some really big assumptions when we think the output is automatically translating to the results we hoped for. ln the age of #SDGs results ought to be sustainable. Can we achieve real, tangible, quantifiable and sustainable results from our RBFs? Link to a blog and a few questions at the end to get us rethinking #Results.

Just in case you missed the press release, it is with great excitement, that I announce the Sustainable Infrastructure Finance Academy (SIFAC). A hearty thank you to Lenwood V Long Sr and Alexandria McBride for adding their supportive voice to our work. The origins of SIFAC extend nearly 6 years ago as a platform to train the next generation of diverse climate finance professionals. The creation of the GGRF provides an opportunity to update and expand our approach. The urgency of this moment means that we can’t wait years to train climate finance professionals, but we must provide community lenders, developers and governments with the hands-on support they need to finance sustainable infrastructure activities now.    Think of SIFAC as more vocational than ivory tower. Our aim is to help folks, get “stuff” done!!!   SIFAC is largely designed based on Sustainable Capital Advisors first-hand experience supporting and advising loan funds, MDI’s, credit unions, green banks, environmental justice and community based organizations, project developers, municipalities and more. Our experience evaluating transactions, developing finance models, structuring credit enhancement, assessing risk and closing deals, provides the perspective and understanding to provide the hands-on support that is needed at this moment. At our core, we are bankers, advisors, and developers who recognize that the only way to effectively address our changing climate is to finance transactions and SIFAC is focused on supporting, just that.    So think of SIFAC as the place you go, when your financing doesn’t look like the case study or when your financing model is not synching to the developers, or when you need a third eye to evaluate the risk profile of a new product, or when you don’t know what you need but you need it. SIFAC enables organizations to expand their sustainable infrastructure finance capabilities - now, through the direct support provided by the SIFAC team. The SIFAC subscription model is designed to allow organizations to select the level of support they need based on their availability and budget.     If the SIFAC platform is of interest, please visit www.sifac.org to sign up and let us know how we can best support you.   Likewise, if you have expertise and talents that you can contribute to this work, please reach out to me as well. It's going to take all of us to support our community lenders, developers, community-based organizations, municipalities and others at this critical time. https://lnkd.in/gXq7db_c

The Sparinvest #Valueinvesting team continues its efforts to deliver meaningful results from #engagement. In late 2023, Sparinvest - part of Nykredit Asset Management - co-filed with ShareAction and various other investors a resolution at Barclays in relation to climate. The Sparinvest value equity team appreciates the intensive and constructive engagement with Barclays' senior leadership surrounding the resolution. We recognise that the energy policy released today introduces significant new commitments relating to oil and gas financing, underpinned by increasing acknowledgement of the need to divert financing away from oil and gas expansion.   However, robust implementation is crucial to ensure that these policies have concrete impact in fostering transition and reducing the risk of exposure to stranded assets. We therefore urge Barclays to take further steps.   While we recognise that the International Energy Agency (IEA)'s Net Zero Emissions (#NZE) Scenario highlights the misalignment of new long-lead time upstream oil and gas projects, we do not interpret this as meaning that unrestricted expansion of new short-lead time projects would be consistent with the scenario, and we would welcome further steps to address the risks in financing short-lead time expansion.   We therefore appreciate the commitment from Barclays' senior management to our ongoing #engagement. Viewing the revised policy as a meaningful step forward in the context of that ongoing dialogue, we decided to withdraw our resolution and look forward to monitoring progress and encouraging further commitments. https://lnkd.in/dTSgwh43 #financedemissions #strandedassets #sustainableinvesting ➕ #valueinvesting

Financial products are increasingly being linked to sustainability key performance indicators - KPI's. Adoption and implementation of impactful ESG strategies, goals based methodologies to internationally recognised standards and frameworks offer the opportunity to unlock finance and business development opportunities. Aviva Investors & BNP Paribas complete first sustainability-linked transaction for Associated British Ports Associated British Ports (‘ABP’) announces it has completed a sustainability-linked interest rate swap repack transaction with Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), and BNP Paribas. The 30-year Sterling Overnight Index Average (SONIA) linked interest rate swap transaction is believed to be the first SONIA-linked interest rate swap institutional repack transaction and the first institutional repack transaction to have sustainability-linked key performance indicators (KPIs) attached to it. The performance targets were subject to second party #verification by ISS Corporate Solutions, to ensure they were both sufficiently material and ambitious in nature, whilst also remaining aligned to Loan Market Association sustainability-linked loan principles. As part of the deal, a discount is offered to ABP on its hedging rate, provided that ABP meets certain #sustainability-linked #KPIs. These KPIs require ABP to achieve a significant reduction in its combined #Scope1 and #Scope2 emissions by 2030, building on the 36% reduction it has achieved in its absolute greenhouse gas emissions since 2014. Munawer Shafi, Head of Structured and Private Debt at Aviva Investors, said: “We are delighted to have completed this innovative transaction with ABP and BNP Paribas. It further demonstrates our ability to incorporate sustainability considerations into bespoke transactions, while continuing to deliver the desired economic outcomes for all parties, as well as attractive risk-adjusted returns for our clients. We are committed to deploying capital to where it is needed to help our clients achieve their #sustainability goals, and hope that this transaction will speed the adoption of #ESG-#linked transactions in the swap repack space.” Get in touch: - No obligation 60 minute Masterclass on 'ESG in Maritime'. - Explore how Blue ESG unlocks ESG opportunity for your business. Email: [email protected] Blue ESG - Maritime ESG Made Easy ---------------- Green Pays Off: $4 #Trillion Revenue Boost for Growth of ESG-Focused Businesses Source: International accounting bulletin --------------- #esg #esgreporting #esgstrategy #unlock #finance #opportunity #emissions #goalbased #scope1 #scope2 #scope3 https://lnkd.in/d6mh5zgF

Financial products are increasingly being linked to sustainability key performance indicators - KPI's. Adoption and implementation of impactful ESG strategies, goals based methodologies to internationally recognised standards and frameworks offer the opportunity to unlock finance and business development opportunities. Aviva Investors & BNP Paribas complete first sustainability-linked transaction for Associated British Ports Associated British Ports (‘ABP’) announces it has completed a sustainability-linked interest rate swap repack transaction with Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), and BNP Paribas. The 30-year Sterling Overnight Index Average (SONIA) linked interest rate swap transaction is believed to be the first SONIA-linked interest rate swap institutional repack transaction and the first institutional repack transaction to have sustainability-linked key performance indicators (KPIs) attached to it. The performance targets were subject to second party #verification by ISS Corporate Solutions, to ensure they were both sufficiently material and ambitious in nature, whilst also remaining aligned to Loan Market Association sustainability-linked loan principles. As part of the deal, a discount is offered to ABP on its hedging rate, provided that ABP meets certain #sustainability-linked #KPIs. These KPIs require ABP to achieve a significant reduction in its combined #Scope1 and #Scope2 emissions by 2030, building on the 36% reduction it has achieved in its absolute greenhouse gas emissions since 2014. Munawer Shafi, Head of Structured and Private Debt at Aviva Investors, said: “We are delighted to have completed this innovative transaction with ABP and BNP Paribas. It further demonstrates our ability to incorporate sustainability considerations into bespoke transactions, while continuing to deliver the desired economic outcomes for all parties, as well as attractive risk-adjusted returns for our clients. We are committed to deploying capital to where it is needed to help our clients achieve their #sustainability goals, and hope that this transaction will speed the adoption of #ESG-#linked transactions in the swap repack space.” Get in touch: - No obligation 60 minute Masterclass on 'ESG in Maritime'. - Explore how Blue ESG unlocks ESG opportunity for your business. Email: [email protected] Blue ESG - Maritime ESG Made Easy ---------------- Green Pays Off: $4 #Trillion Revenue Boost for Growth of ESG-Focused Businesses Source: International accounting bulletin --------------- #esg #esgreporting #esgstrategy #unlock #finance #opportunity #emissions #goalbased #scope1 #scope2 #scope3 https://lnkd.in/dki54GW

Global Credit Ratings (GCR Ratings) has reaffirmed InfraCredit's "AAA" credit rating for the seventh consecutive time with a stable outlook. GCR highlighted InfraCredit's strategic role as an Infrastructure credit guarantee provider in Nigeria, with a “complete non compete” competitive business nature, strong capital and leverage position, robust funding, liquidity and sound risk profile. InfraCredit’s risk position was also considered a positive rating factor by GCR, underpinned by stringent underwriting criteria and the absence of any called guarantee. GCR further accorded the rating to InfraCredit’s stable management team, with a sound risk and portfolio management experience. Additionally, GCR recognized InfraCredit's strong ESG implementation and significant progress in clean energy transition within the power sector portfolio. Please read more: https://bit.ly/4coYUH8

Very happy, with Matt Posner, to share our thoughts (and love) for pooled loan programs in a new article out on ImpactAlpha and how they can perhaps be an effective tool for scaling green finance in the US. SRFs, HFAs, already doing the work, now perhaps with more tools. https://lnkd.in/e29XZvRj

Green Finance 1.      Green Finance as a broad umbrella term that refers to the major shift in financial flows required to support projects that benefit the environment and society by reducing pollution or tackling climate change. 2.       Green Financing, UN Environment Program, ‘is to increase the level of financial flows (from banking, micro-credit, insurance, and investment) from the public, private and not-for-profit sectors to sustainable development priorities 3.      Financing of public policies that encourage implementation of environmental mitigation and adaptation projects 4.      Voluntary Target for Green Finance - As a part of their commitment to scale up lending for green finance, the Reserve Bank seeks to encourage banks to set a voluntary funding target to increase green funding with the approval of their Board 5.      The banks may set an incremental target for green finance over short, medium and longer term towards certain identified sectors 6.      In order to green the banking processes by making them more environment-friendly, Banks could consider converting their branches to green branches by eliminating / limiting the use of paper in their operations, 7.      renewable energy for sourcing power for the data centres, etc. and implement guidance provided by established frameworks like the Green Data Centre Rating Systems. 8.      The framework is applicable to Scheduled Commercial Banks. 9.      The Green Investment Bank aims to reach a ‘double bottom line’ of both achieving significant green impact and making financial return 10.  The Green Investment Bank aims to reach a ‘double bottom line’ of both achieving significant green impact and making financial return 11.  Green finance is a broad term with multiple definitions and is used interchangeably with “sustainable finance” and “climate finance” depending on context.