About this page:
Aligning investments with the 1.5°C goal of the Paris Agreement enables fund managers to support the global transition to a low-carbon economy. It helps reduce climate risks, capture new opportunities, and contribute to a more sustainable and resilient future.
A. Green Lending Handbook
The Green Lending Handbook begins by introducing the terms climate finance, green finance, and sustainable finance. It then defines what constitutes a green loan and explains the Green Loan Principles. It goes on to examine the types of green projects that can be financed under Green Loan Principles, beginning with the eligible categories outlined in the use of proceeds component and then considering how other taxonomies may be applied. It then explains how the Green Loan Principles can be applied across the lifecycle of a loan, from project selection and appraisal through to disbursement and post-disbursement stages. It concludes with guidance on reporting at the level of the green loan portfolio
B. Green Loan Principles
The Green Loan Principles have been developed by an experienced working party consisting of representatives from leading financial institutions active in the green loan market. Their aim is to promote the development and integrity of green loans by creating a high-level framework of market standards and guidelines. This framework provides a consistent approach across the green loan market, while allowing for flexibility and supporting the integrity of the green loan market as it evolves.
Learning objectives:
- Explain the four Green Loan Principles:
- Use of proceeds
- Process for project evaluation and selection
- Management of proceeds
- Reporting
- Explain the type of projects that can be financed under the Green Loan Principles.