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Green finance in five steps.
Plain words first. Each term is marked the first time it appears: tap it for a one-line meaning, or open the glossary for the detail.
Five steps
- There is money set aside for green projects.Development banks such as EBRD and IFC lend to local banks, which lend it on to companies for things like solar panels, buildings that use less energy, or cleaner machines. This money often comes on easier terms or for longer than an ordinary loan, because it is meant to do some good as well as earn a return.
- The lender checks that the project qualifies.Each credit line comes with a list of what counts: how much energy a project saves, what it replaces, and what the money must never fund. A project fits the list or it does not, and the file has to show which.
- The lender checks for harm.Could the project hurt workers, neighbours or nature? A bank runs every loan through a fixed routine for this, its ESMS, and a larger project needs a proper study of its effects.
- The lender checks the numbers.Like any loan: can the business repay in a bad year, who else is putting money in, and what happens if the equipment produces less than promised. Being green does not lower this bar.
- The paperwork sets the timing.Approval comes with conditions: documents you deliver before any money moves, and promises you keep while the loan runs. Have them ready early and the money moves sooner.
Next
That is the idea behind this site: capital follows proof. When you are ready to test your own file:
Run a review of your fileRead the glossaryRead the guidesExporting to the EU? The CBAM guideRunning a non-bank lender? FRA Decision 36