
Contents
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From Creditworthiness to Eco-Worthiness From Creditworthiness to Eco-Worthiness
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Greening the Bond Markets Greening the Bond Markets
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Advantages of Green Bonds Advantages of Green Bonds
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Green Banks at Work Green Banks at Work
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China Development Bank China Development Bank
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Brazilian Development Bank Brazilian Development Bank
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Regulatory Initiatives Regulatory Initiatives
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A Cautionary Perspective on Green Finance A Cautionary Perspective on Green Finance
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Obstacles and Vested Interests Obstacles and Vested Interests
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A New Default Option A New Default Option
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6 From Generic to Eco-Finance
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Published:December 2014
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Abstract
Chapter Six discusses the complementary changes in finance needed to drive through these changes in the energy and materials markets. Apart from the toxic effects of many financial derivatives, introduced without regulation and wreaking destruction, the banking and finance sector has also developed sophisticated instruments for creating credit and channeling finance to companies looking to invest in new processes. Green economy projects are looking increasingly attractive and are to be serviced by targeted finance (green banks, climate bonds). As they become adopted by institutional investors such as pension funds, these green credit instruments promise to aggregate projects and lower the cost of finance, thus making green economy projects even more attractive. Eco-finance will then emerge as the default option, offering a more stable as well as sustainable foundation for a green capitalism.
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