The rapid expansion of the green finance market presents an unprecedented opportunity to drive a global transition to a sustainable, low-carbon economy. However, as capital flows into a diverse range of environmental projects, from renewable energy to sustainable agriculture, a unique set of financial and non-financial risks emerges. Traditional risk assessment frameworks, which often focus on conventional metrics, may not adequately capture the complexities inherent in green projects. These new risks, which can include technological and market risks specific to a green project, require a specialized understanding of a project's environmental and social impact, its regulatory landscape, and its long-term viability.

This training program is meticulously designed to provide a comprehensive understanding of the risks involved in green financing. You will learn to move beyond a conventional risk assessment and develop a robust framework that integrates environmental, social, and governance (ESG) factors into your analysis. The curriculum covers everything from an innovative project finance structure to the role of a green bond and its associated risks. By the end of this course, you will be equipped to identify, measure, and mitigate a risk in a green financing project, helping your organization to make a sound financial decision while contributing to a sustainable future.

Duration: 10 days

Target Audience:

• Banking and financial professionals
• Corporate finance and treasury professionals
• Impact investors and fund managers
• Project finance specialists
• Risk and credit analysts
• Professionals from public and private sectors engaged in green projects
• Consultants specializing in sustainable finance
• Anyone interested in the intersection of finance and sustainability

Objectives:

• Understand the core concepts of green finance and its unique risk profile
• Learn to identify and quantify financial and non-financial risks in green projects
• Master the principles of an integrated risk management framework for green financing
• Gain proficiency in applying specialized risk assessment techniques
• Understand and mitigate the risks of a green bond and its issuance
• Learn to navigate the regulatory and reporting requirements for green projects
• Develop skills in communicating and reporting on green-related risks
• Prepare for a future change in regulations and their impact on risk
• Implement a continuous monitoring system for green projects
• Learn to use data and analytics for a more accurate risk assessment

Course Modules:

Module 1: Foundations of Green Finance and Risk

• The history and evolution of green finance
• The different types of green projects
• The unique risk profile of green financing
• The key stakeholders in green finance
• The importance of a clear and consistent definition of "green"

Module 2: Project-Specific Risk in Green Financing

• The importance of a technology risk
• The role of a market risk and its volatility
• The challenges of a regulatory risk
• The importance of an operational risk
• The impact of a social and environmental risk

Module 3: Green Bonds and Their Risks

• The importance of a green bond and its structure
• The role of a second-party opinion
• The challenges of a "greenwashing" risk
• The importance of a clear use of proceeds
• The impact of a reputational risk

Module 4: Risk Assessment for Renewable Energy Projects

• The importance of a resource risk (e.g., wind, solar)
• The role of a technology and performance risk
• The challenges of a power purchase agreement
• The importance of a grid connection risk
• The impact of a regulatory and policy risk

Module 5: Risk Assessment for Energy Efficiency Projects

• The importance of an energy savings guarantee
• The role of an operational and maintenance risk
• The challenges of a project measurement and verification
• The importance of a technical feasibility
• The impact of a behavioral risk

Module 6: Risk Assessment for Sustainable Agriculture and Forestry

• The importance of an environmental risk
• The role of a climate change risk
• The challenges of a supply chain risk
• The importance of a social and community risk
• The impact of a biodiversity risk

Module 7: Integrating ESG Factors into Risk Analysis

• The importance of an ESG data and its quality
• The role of an ESG rating
• The challenges of an ESG integration in a credit analysis
• The importance of a materiality assessment
• The impact of a non-financial risk

Module 8: The Role of an Innovative Financial Instrument

• The importance of a blended finance
• The role of a climate-linked bond
• The challenges of a carbon credit
• The importance of a guarantee and a credit enhancement
• The impact of an insurance product

Module 9: Documentation and Regulatory Requirements

• The importance of a green bond framework
• The role of an environmental and social impact assessment
• The challenges of a climate-related financial disclosure
• The importance of a consistent reporting
• The risks of a non-compliance and penalties

Module 10: The Use of Data and Analytics

• The importance of a data-driven approach
• The use of a satellite imagery and a remote sensing
• The role of a machine learning in risk assessment
• The importance of a continuous monitoring
• The challenges of a data availability and reliability

Module 11: The Role of an International Standard

• The importance of a Green Bond Principle
• The role of a Climate Bonds Initiative
• The challenges of a different national standard
• The importance of an alignment with a global standard
• The impact of a standard on a market liquidity

Module 12: The Use of Guarantees and Collateral

• The importance of a clear legal agreement
• The challenges of a cross-border guarantee
• The role of a collateral and its valuation
• The importance of a clear and transparent documentation
• The risks of an unenforceable guarantee

Module 13: Stress Testing and Scenario Analysis

• The importance of a stress test
• The use of a physical and a transition risk
• The role of a reverse stress test
• The importance of a clear and actionable result
• The challenges of communicating stress test results to stakeholders

Module 14: Case Studies and Best Practices

• A deep dive into successful green financing deals
• The challenges of a real-world implementation
• The importance of a strong cross-functional team
• The role of a leadership in adopting a sustainable culture
• Lessons learned from the field

Module 15: Final Project and Discussion

• A hands-on project to build a green financing risk framework
• The role of a new technology (e.g., carbon capture)
• The future of a green finance
• The importance of a continuous learning mindset
• A final discussion on a remaining challenge and an opportunity

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.