Glossary

Capital market

The collective term for any source of debt (bonds) and equity (shares) financing. Advocates of private sector climate finance argue that the main investment in climate-related projects is likely to come from capital markets, rather than from bank loans or public grants. This reflects a redefinition of the concept of climate finance away from climate debt, and tends to reduce the perceived role of the public sector to leveraging private finance through reducing the perceived risk to investors.

 

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