Green Finance: Mind the Gaps

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This article explains green finance and the levels of unprecedented finance required in infrastructure to sustain population growth and aid the transition to a low carbon economy and meet net zero carbon commitments.

Interest and capital flows into green finance are accelerating and this paper takes stock of some of the issues unique to infrastructure which require long term thinking to ensure green outcomes are realised. These include: standards defining what constitutes “green”; the importance of incorporating these standards into the valuation of assets; ensuring financial terms and contracts are aligned to meet desired environmental outcomes; and environmental performance criteria are defined as early as possible and monitored over the life of the asset.

To make a success of “green” investment and to move at pace, will require more joined-up thinking from different disciplines and also ensuring their involvement is aligned.