The paper Harnessing Public Trade Finance to Foster a Green Economy in Developing Countries: Current State of Play and Way Forward investigates the potential to harness trade finance to foster the development of a green economy in developing countries.
The objectives of this paper are twofold. First, the current state of play in trade finance is investigated. The authors show a double centralization of flows - sectoral and geographical - fuelled by the undermining of institutions’ original mandates. They also highlight the shortcomings of the recent ‘do no harm’ regulations implemented in the sector. Secondly, building on the ever-increasing interest in green trade, they formulate recommendations for public agencies to ‘do good’ by bridging the financing gap and being a driving force of the shift to a sustainable world.
In order to tackle these questions, this research conducts a quantitative and qualitative analysis of trade finance flows from the world’s leading trade finance institutions over the last decade. Data is taken from the International Union of Credit & Investment Insurers and the Organisation for Economic Co-operation and Development. The theoretical analysis builds on an extensive literature review and the examination of reforms undertaken in the public and private trade finance sectors.