Economics
Security That Triggered a Recession Reworked to Green the Earth
- New market emerging for bonds backed by clean infrastructure
- Proposal set for support from G-20 nations this month
This article is for subscribers only.
The financial instrument that nearly collapsed the global economy is being re-engineered to create a new market with a lofty goal: to save the planet.
The chairs of a group set up by G-20 nations are kicking off an initiative to securitize bank loans for sustainable infrastructure, creating a new way to attract private sector funds for projects that aims to rein in global warming. If it works, they say that it could channel trillions of dollars to the cause, by connecting the capital markets to underlying green investments.