The Lab features Pay As You Save for Clean Transport

The Global Innovation Lab for Climate Finance has published a new profile for PAYS for Clean Transport as part of the The Lab: Driving Sustainable Investment class of 2018.

PAYS for Clean Transport was selected from a pool of over 100 crowd-sourced, competitive ideas to mobilize needed investment for low-carbon, climate-resilient development.

From the profile:

“Meeting transportation decarbonization targets by 2030 is essential in every climate stabilization scenario and requires accelerating transit electrification today. PAYS for Clean Transport will implement debt-financed iterations of the transaction for creditworthy utilities in leading emerging-market cities. Analysis to-date suggests Mexico City, Santiago, Bogotá, and Cape Town may be particularly suitable for pilot projects; however, there remains significant potential in many other parts of the world.

Later iterations of PAYS for Clean Transport will utilize a project finance capital structure that insulates capital providers from balance sheets of less-creditworthy utilities, and allows PAYS to accelerate electrification in a wider variety of contexts. Once operating at scale, a larger pipeline of PAYS for Clean Transport projects with well-documented environmental benefits can form the basis of a bespoke green bond issuance for greater liquidity, investor diversification, and accessible low-cost capital in many markets.”