Long-term projects that finance climate and environmental protection often fail to generate short-term yields. Project volume, project risk and lack of technical know-how related to green technologies hamper access to direct (capital-market) financing. Public banks play a key role in reducing such tensions. They have extensive expertise in the financing of ecologically and socially beneficial projects. Through public-funding programs or risk-sharing between the public and private sectors, public banks enable many long-term investments which could not otherwise be realised.
The Association of German Public Sector Banks, VÖB, and its member institutes actively participate in the promotion of sustainable financial markets. adelphi advises the VÖB on questions related to green financing. Green bonds in particular are currently experiencing high momentum, with the aim of creating conducive framework conditions and positive empirical values. adelphi has already supported the VÖB in implementing the GreenBond Initiative Germany in the first half of 2017, for which a stakeholder workshop was conducted and a study written to promote the German green bond market.