Developers must opt for low carbon to win institutional funding

14 August 2012 - Link2, David Thorpe

Borrowers seeking loans from institutional investors must scope low carbon-emitting alternatives to potential projects before they can receive funding, in a major revision of principal investment guidelines. The guidelines in question are the Equator Principles, which are used by 77 institutional investors as a way of gauging the environmental and social implications of projects seeking backing. They already apply to project finance advisory services and project financing over $10m; and it is proposed that they are extended to cover project-related corporate loans and bridge loans.  ... Other proposed changes are new requirements related to managing the impacts of projects on climate change, and an increased emphasis on the consideration of human rights in due diligence. This includes taking into account the UN "Protect, Respect and Remedy" Framework for Business and Human Rights and Guiding Principles on Business and Human Rights.  Read More.