The Philippines' first real estate investment trust, or REIT, focused on clean energy made its debut on the country's stock market last year. China now has its eye on the financing channel too. Does this new mechanism come with drawbacks?
The innovative cocktail of public, private and philanthropic money was first touted as a solution to close the funding gap for the sustainable development goals in 2015. But eight years on, its promise to close a trillion-dollar financing gap rings hollow.
Developing nations say they do not want to be saddled with debt dealing with a climate problem they did not cause. But repayment-free money has been hard to come by, and may remain so at least in the short run.
Increasing investor scrutiny, alongside macroeconomic uncertainty, has led to a slowdown in the issuance of sustainability-linked bonds globally. How can this emerging financing instrument be structured to ensure greater transparency?