De La Gorce noted that – after playing a key role in the take-off of the green bond market – development banks “now appear to be on the decline, representing 11% of labelled green bond issuance in 2017, compared with 60% in 2013”. She told Environmental Finance: “Although we believe that development banks are likely to remain important issuers in the market, we think that their role is likely to shift, from market leaders to market supporters, providing financing for more risky investments.”
De La Gorce also expects that green securitisation is a trend that will attract a lot of attention this year. “Green securitisation is one of the emerging instruments for green financing,” De La Gorce added. “It generally allows smaller-scale assets to be pooled to reach large capital-market investors. It can therefore provide a suitable mechanism for pooling green loans or mortgages for green buildings, so that banks can take them off their balance sheets.”
To read the segment in Environmental Finance’s Green Bond Round-Up, please click here.