responsAbility publishes practitioners’ survey on potential, risks and challenges

Green lending in developing economies: an enormous opportunity for those who know how to do it

Zurich, 6 December, 2017 — Development investments specialist responsAbility is dedicating its latest publication to the topic of green lending in developing countries, analysing the opportunity, risks and entry barriers for financial institutions on developing a loan product for energy efficiency and renewable energy.

Emerging economies is where energy demand will grow the most over the coming decades. One way to mitigate climate change in spite of increased consumption is to encourage the use of energy efficient equipment as well as renewable energy.

This idea is at the core of green lending, i.e. loans that are dependent on environmental criteria for the planned use of funds. In developing economies, green lending is increasingly becoming a topic, especially for financial institutions eager to unlock the business opportunity.

In a survey conducted among green lending experts from around the developing world responsAbility explores financial institutions’ motivations to engage in green lending and how they assess the market potential.

The key results:

  • Growing client demand makes financial institutions want to introduce green lending.
  • 80% of respondents expect high to very high growth opportunities in the field.
  • A lack of institutional capacity and knowhow are the main challenges banks face.

Luke Franson, Head Green Lending at responsAbility and co-author of the study, advocates an intense cooperation with a knowledgeable partner when embarking on the green lending journey: “We are currently working with financial institutions in 18 countries worldwide. From this experience we know that strong partnerships can significantly lower the barriers to green financing – opening up the enormous green lending opportunity in developing countries.”

The study:

Green Lending – Unlocking the opportunity in developing economies: A practitioners’ survey

Contact
responsAbility Investments AG
Ulli Janett, Media Relations
+41 44 403 06 33
ulli.janett [at] responsAbility.com

About responsAbility Investments AG (responsAbility.com)
responsAbility Investments AG is a leading asset manager in the field of development investments that offers professionally managed investment solutions to private, institutional and public investors. The company supplies debt and equity financing to firms in emerging economies and developing countries. responsAbility currently has USD 3.3 billion of assets under management invested in over 550 companies in 97 countries. In the area of green lending, a dedicated responsAbility-led climate fund works with financial institutions in xx countries. Together, these institutions have disbursed over xx,000 green sub-loans with a total value of USD xxx million since the fund’s inception in 2009.

Legal Disclaimer

This information was produced by responsAbility Investments AG together with its partners with the greatest of care and to the best of its knowledge and belief. However, responsAbility Investments AG provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this information material are those of responsAbility Investments AG at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This material is provided for information purposes only. It does not constitute an offer or a recommendation to buy or sell financial instruments or services and does not release the recipient from exercising his/her own judgment. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this information material nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person. responsAbility Investments AG is not an investor and does neither provide direct nor indirect financing. The mentioned investments in the specific markets, countries, companies, institutions, instruments, or sectors are exclusively transacted by the investment vehicles managed or advised by responsAbility Investments AG. Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor's reference currency. It should be noted that historical returns and financial market scenarios are no guarantee of future performance.