Debt and equity

 

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).The financing solutions that encompass a debt or equity element are listed below.

Crowdfunding

Approach for projects, organizations, entrepreneurs, and startups to raise money for their causes from multiple individual donors or investors.

Debt for nature swaps

Agreement that reduces a developing country’s debt stock or service in exchange for a commitment to protect nature.

Enterprise challenge funds

Funding instrument that distributes grants (or concessional finance) to profit-seeking projects on a competitive basis.

Environmental trust funds

Legal entity and investment vehicle to help mobilizing, blending, and overseeing the collection and allocation of financial resources for environmental purposes.

Green bonds

Bonds where proceeds are invested exclusively in projects that generate climate or other environmental benefits.

Impact investment

Investments made with the intention to generate a measurable social and environmental impact alongside a financial return.

Remittances (Diaspora Financing)

Private unrequited transfers sent from abroad to families and communities in a worker's country of origin.

Social and development impact bonds (Results-Based Financing)

A public-private partnership that allows private (impact) investors to upfront capital for public projects that deliver social and environmental outcomes in exchange for a financial interest.

Related blogs

The sum needed to achieve the 2030 Agenda is unprecedented. How can governments effectively mobilise and manage money for real development results?

A look at the current state of development funding shows a stark contrast between the price tag to eliminate poverty and protect the planet by 2030, and the actual financial resources that are…

How to tackle various forms of risk – from extreme weather events to commodity price shocks, disease outbreaks and over-indebtedness – was high on the agenda of the 2017 Financing for Development…

As today’s celebration coincides with the International Year of Sustainable Tourism, it is worth noting the role biodiversity and ecosystems play as the backbone of tourism in many places, and equally…