/ Publications / Rationale, potential and pitfalls of green securitization
Rationale, potential and pitfalls of green securitization
13 May 2020
AUTHOR:PETIT Christy Ann, SCHLOSSER Pierre
The purpose of this paper is to take stock of green securitization’s rationale, potential and pitfalls. It does so by first describing what green securitization is, and, identifying the diversity of asset-backed securities’ types used. The specificities of green securitization are illustrated with examples and two deeper case studies. A critical assessment on benefits, risks, costs and limitations of green securitization in fostering green finance is then provided. Before concluding, the paper also engages with public incentives and general public support measures that could sustain the growth of green securitization.
Highlights: Current estimates of marginal abatement costs suggest that achieving zero or net-zero emissions requires much higher carbon prices than ever experienced. Depending on how well they are addressed, competitiveness [...]