The global challenge of climate change requires an unprecedented mobilization of capital, and green and sustainable securitization is emerging as a powerful and innovative solution. By pooling and repackaging assets with verified environmental benefits, this financial mechanism allows for the efficient funding of climate-friendly projects, from renewable energy and energy efficiency to sustainable agriculture. This training course provides a critical roadmap for professionals seeking to understand and leverage this rapidly growing market, transforming a complex financial instrument into a catalyst for positive environmental impact and unlocking new opportunities for investors and issuers alike.

This comprehensive 10-day program offers an in-depth exploration of the entire green securitization lifecycle, from the initial identification of eligible assets to post-issuance impact reporting. Participants will learn to navigate the intricate landscape of global standards, verify the "green" credentials of assets, and structure transactions that attract both mainstream and ESG-focused investors. Through practical case studies and expert-led sessions, you will gain the knowledge to build credible and transparent green deals, mitigate reputational and "greenwashing" risks, and effectively communicate the environmental and financial returns of sustainable investments to a broad stakeholder base.

Duration

10 days

Target Audience

• Climate finance professionals and ESG analysts
• Structured finance and securitization specialists
• Green and sustainable bond issuers and underwriters
• Investors seeking to integrate ESG criteria into their portfolios
• Project developers in the renewable energy and clean technology sectors
• Financial regulators and policymakers
• Legal and compliance professionals
• Credit rating agency analysts

Objectives

• Define and identify eligible green and sustainable assets for securitization.
• Understand key global standards and frameworks like ICMA's Green Bond Principles.
• Structure and execute a green securitization deal from start to finish.
• Navigate the due diligence process for environmental and social risks.
• Engage with second-party opinion providers and verifiers.
• Implement robust post-issuance monitoring and impact reporting.
• Analyze the risk and return profile of green securitization.
• Mitigate greenwashing risks and ensure transaction credibility.
• Understand the role of policy and regulation in driving the market.

Course Modules

Module 1: Introduction to Climate Finance and Securitization

• The role of finance in addressing climate change.
• An overview of the green and sustainable finance market.
• Introduction to the core concepts of securitization.
• How securitization can be applied to fund climate projects.
• The growth and potential of the green securitization market.

Module 2: Defining and Categorizing Green Assets

• A framework for identifying eligible green and sustainable assets.
• Key asset classes: renewable energy, energy efficiency, sustainable real estate.
• The importance of the use of proceeds in a green deal.
• Establishing clear and measurable environmental benefits.
• Case studies in defining green asset pools.

Module 3: Global Standards and Frameworks

• An in-depth look at the ICMA Green Bond Principles (GBP).
• The role of the Climate Bonds Initiative (CBI) and its standards.
• Understanding regional standards like the EU Green Bond Standard.
• The importance of alignment with the UN Sustainable Development Goals (SDGs).
• The process of obtaining a green or sustainable label for a transaction.

Module 4: The Legal and Structural Aspects of Green Securitization

• Key legal documentation for a green deal.
• The role of the Special Purpose Vehicle (SPV) in green finance.
• Structuring the transaction to ensure proceeds are used appropriately.
• Legal clauses related to environmental representations and warranties.
• Navigating legal and jurisdictional differences in green finance.

Module 5: Green and ESG Due Diligence

• The importance of due diligence on the green credentials of assets.
• Assessing the originator's environmental policies and practices.
• Verifying the accuracy of data on environmental performance.
• Identifying and mitigating potential social risks related to assets.
• The role of external verifiers in the due diligence process.

Module 6: ESG Risk Assessment

• Integrating environmental, social, and governance (ESG) factors into credit analysis.
• Assessing physical climate risks to underlying assets.
• Analyzing transition risks and the impact of climate policy.
• The importance of social and governance factors.
• Developing a comprehensive ESG risk profile for a transaction.

Module 7: The Role of Second-Party Opinions and Verifiers

• Understanding the purpose and value of a second-party opinion (SPO).
• The process of engaging with a verifier or SPO provider.
• The criteria used by SPO providers to assess a green deal.
• The difference between a pre-issuance and post-issuance review.
• How to use an SPO to enhance transaction credibility.

Module 8: The Issuer's Perspective

• Strategic considerations for an issuer of green securitizations.
• The process of preparing a deal for the market.
• The benefits of issuing green securitizations (e.g., investor diversification).
• Mitigating "greenwashing" risk and maintaining reputational integrity.
• Marketing and communicating the transaction's green story.

Module 9: The Investor's Perspective

• The growing demand for green and sustainable investment products.
• How investors evaluate green securitization deals.
• The role of ESG ratings and indices.
• Understanding the investor's perspective on risk and return.
• The importance of transparency and robust reporting for attracting capital.

Module 10: Reporting and Transparency

• The essential components of a green securitization report.
• The use of proceeds reporting and its importance.
• Key performance indicators (KPIs) for environmental impact.
• The role of technology in automating reporting and disclosure.
• Best practices for communicating with investors and stakeholders.

Module 11: Post-Issuance Monitoring and Impact Reporting

• The ongoing obligation to monitor the environmental performance of assets.
• The process of collecting and verifying impact data.
• Preparing an annual impact report for investors and stakeholders.
• Dealing with potential changes to assets or environmental policies.
• The importance of transparency in post-issuance reporting.

Module 12: Case Studies in Green Securitization

• An analysis of successful green securitization deals from around the world.
• A deep dive into the transaction structure and asset classes.
• Lessons learned from market leaders and innovators.
• The challenges and opportunities encountered in real-world deals.
• A discussion on the impact of these transactions.

Module 13: Regulatory and Policy Drivers

• Global and regional policies driving the green finance market.
• The role of central banks and financial regulators.
• Understanding carbon pricing and its impact on asset valuation.
• The importance of tax incentives and subsidies.
• The future of green finance regulation.

Module 14: Innovations in Green Securitization

• The role of FinTech in green finance.
• Exploring the potential of blockchain and tokenization for green assets.
• The development of new asset classes for securitization (e.g., climate tech loans).
• The role of parametric insurance in mitigating climate risk.
• Future trends and emerging opportunities in the market.

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 7 working days before commencement of the training.