Using Credit Lines to Foster Green Lending: Opportunities and Challenges

The scoping study Using Credit Lines to Foster Green Lending: Opportunities and Challenges aims at identifying the opportunities and the challenges related to the deployment of credit lines to support the low-carbon climate-resilient transition in developing countries.

The report demonstrates that credit lines, and more generally financial intermediation instruments, can be useful tools in addressing some of the supply- and demand-side barriers to green lending. Nevertheless, barriers related to the general investment environment require broader policy interventions and usually cannot be tackled by financial intermediation instruments alone.