While institutional investors anecdotally invest in

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while institutional investors anecdotally invest in privately placed corporate bonds, no public record is currently available). Figure 5. A “matrix frame” to map channels for institutional investment in green bonds Note: Coloured boxes are examples of green bonds invested in by selected institutional investors (named in brackets where information is publicly available – bonds will have more than these listed investors). Colours represent technologies. Although not shown here, diversified corporates can also issue a green bond where the proceeds are reserved for “green projects or activities. “Pure-play” refers to entities focused on only one industry or product e.g. a solar PV company. Source: OECD (2015b; 2016 forthcoming) IMPLICATIONS FOR INSTITUTIONAL INVESTORS . 19 D C B A H G F E SolarCity (Aviva, Blackrock, Transamerica Life) Touwsriver CPV Plant (South Africa pension funds) EDF (Jupiter Fund Management) Export Development Canada (Calstrs) No public information available on institutional investment in an unlisted corporate green bond fund No public information available on institutional investment in a privately placed corporate green bond fund World Bank Green Bonds (Diverse institutional investors) No public information available on institutional investment in an unlisted green project bond fund Westmill Solar Cooperative (Lancashire County Pension Fund) Diversified sustainable energy Hydro Waste to energy Biomass Biofuels Geothermal TECHNOLOGY KEY Solar – CPV Wind – diversified Solar – PV Solar – CSP Wind – offshore Wind – onshore Unlisted Listed Debt L I S T E D L I S T E D ( D i r e c t ) U N L I S T E D ( D i r e c t ) P R O J E C T P U R E - P L A Y C O R P O R A T E S I N T E R M E D I A T E D U N L I S T E D Debt Debt Debt Equity Equity Equity Equity Channel to access clean energy investment Investment destination: project or company POLICY PERSPECTIVES
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Barriers to scaling up The speed at which green bond markets develop and mature hinges on many variables, including policy and regulatory factors (e.g. policies that create the demand for green projects) and market conditions (e.g. interest rate developments and the credit cycle). These conditions will differ across the jurisdictions in which green bonds have been issued; the sub-national, national and regional markets that add up to an investor base of green bond demand with a global outlook. 7 Additionally, the evolving green bond market faces a range of specific challenges and barriers to its further evolution and growth. Policy makers have a suite of options available to overcome these barriers and help to grow a sustainable green bond market with integrity. The OECD modelling scenarios suggest that if there is a concerted push by policy makers and market participants to develop it, the green bond market can scale up rapidly to raise and finance the debt capital that will be needed for a transition to a low-carbon economy.
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