by Loanboox | Dec 2, 2021 | Borrow, Invest
The World Climate Conference COP26, which ended mid-November, delivered important results against climate change. We show these and explain what sustainable finance means and what role the financial sector is playing in the fight against climate change.
The goal of the 26th World Climate Conference COP26 in Glasgow was to advance measures to achieve the goals of the Paris Agreement and the UN Framework Convention on Climate Change.
Achieving Net Zero: The contribution of the World Climate Conference COP26
The Glasgow Climate Pact was adopted at COP26 – almost 200 countries agreed to it. Aside from the one-sentence explanation of keeping the temperature rise below 1.5°C, these are the main points discussed by the delegates:
- Coal will be “phased down”.
- $500 billion to developing countries in the next 5 years to help them cut emissions and cope with the impacts of the climate crisis.
- A database, communications and reporting system (Santiago Network) for countries and organisations to identify and catalyze opportunities and mobilize assistance to address loss and damage from climate change.
Some countries and NGOs described the results as “disappointing”. However, most countries agreed that the deal was balanced at this point, given their differences. The New Zealand chief negotiator summarized it as follows: “The text represents the ‘least bad’ result.”
More information about COP26 and its results can be found here.
What is the connection between the measures mentioned and the financial world?
The importance of sustainable finance
The way the world is currently managing its economy is not sustainable. The ecological level is overstretched and has reached its capacity limits. The financial sector has a central role to play in fighting climate change. On the one hand, enormous sums must be invested to promote sustainable measures, such as renewable energies. This is in order to achieve the UN’s Sustainable Development Goals. On the other hand, huge amounts of money are still flowing into organizations, projects and investments that do not meet sustainability criteria.
What role does finance play in net zero?
One of the key objectives identified in the run-up to COP26 was to mobilize finance. The Glasgow Financial Alliance for Net Zero (GFANZ) was launched to raise standards, drive ambition and ensure that Net Zero commitments are transparent, credible and consistent. Trillions must flow from the private and public sectors for Net Zero to be achieved.
“The private sector is realizing that climate risks are very important for their portfolios and they need to align them to a more sustainable way of doing things.”
Patricia Espinosa, Executive Secretary of the UN Framework Convention on Climate Change
500 global financial services firms have responded and agreed to align $130 trillion – 40% of the worlds’ financial assets – with the goals set out in the Paris Agreement, including limiting global warming to 1.5°C. An encouraging sign.
In the next article, we will do a deep-dive on the roadmap and the role of institutional investors, governments and cities to financing Net Zero.
by Loanboox | Nov 26, 2021 | Borrow, Insights, Invest
Now available at Loanboox in the SDG Portal
The United Nations’ 2030 Agenda comprises 17 Sustainable Development Goals (SDGs). They serve to promote sustainable peace and prosperity and to protect our planet. What is so big starts small: Where measures become effective and tangible for people on a daily basis.
Supporting municipalities in their key role
“Municipalities play a central role in implementing the 2030 Agenda. Many municipalities have already set out on the path to a sustainable future, and many more are currently working on strategies and measures,” says Marc Wolinda of the Bertelsmann Stiftung.
In order to support municipalities in impact-oriented sustainability management, leading municipal associations, the Bertelsmann Stiftung and other partner organisations have created the SDG portal. “For example, the portal offers 56 SDG indicators with data for all municipalities with a population of 5,000 or more, SDG measures and a reporting tool,” Marc Wolinda explains further.
SDG portal now integrated on Loanboox
With one click on the SDG portal linked on the platform, all the goals already pursued by the municipality appear with stored indicators. The information, which can be accessed quickly, is an added value for investors as an orientation, since the importance of sustainable financing is becoming more and more important.
For municipalities, a whole catalogue of measures and examples for the implementation of the SDGs is available as inspiration for their own sustainable development. In addition, there is the possibility of comparison with other municipalities as well as the documentation of their own sustainable development through a reporting function.
by Loanboox | Oct 6, 2021 | Insights, Media
A start-up that broke new ground by digitising municipal lending in Germany is celebrating its 5th anniversary: Loanboox. With 23 billion euros in closed financings in seven countries, the financing platform started off successfully and is rapidly developing its offerings further.
Since its launch in 2016 in Zurich as a platform for municipal finance, borrowers have completed more than 2,100 transactions with a volume of 23 billion euros in seven countries. A team of 40 employees serves 3,000 registered municipalities, cities, public institutions, large companies as well as institutional investors and banks and is rapidly developing the platform.
“The high demand shows the need for efficient debt capital markets,” comments Philippe Cayrol, CEO of Loanboox. “In 2021, we enabled the creation and expansion of municipal infrastructure, such as kindergartens and school buildings, broadband expansion and road construction. It makes us proud to make the debt capital markets easier and faster for all market participants, while contributing in a small way to tomorrow’s society.”
The idea behind Loanboox was radical and bold: to create a digital marketplace for large loans. Borrowers submit their loan requests online, professional investors bid on them – saving time and creating transparency. ”The largest requests so far are 450 million euros. As the business matures, we are also seeing an increasing rush from very established borrowers” adds Cayrol.
A lot has happened since the first days. Loanboox has developed automation and analysis tools for its clients. Advisory services such as financing planning and support for more complex mandates complement the services. 150 active capital providers benefit from more efficient processes, data insights and co-development of new products.
In the last 6 months, the company has celebrated a number of firsts on its platform: The first sustainable loan, the first secured financing and the first transactions in Eastern Europe. These developments pave the way for a successful and sustainable future, both for clients and Loanboox.
The fintech Loanboox is Europe’s leading platform for debt financing and is represented in six countries. Four years after going live, the 20 billion mark in closed volume has been broken. Since its launch at the end of 2016, more than 1600 deals have been completed. Clients are municipalities, municipal companies and municipal utilities as borrowers, institutional investors and banks as capital providers. You can find more information about Loanboox here.
Contact details for questions
Ralf von Cleef, Managing Director
Andrea Gazzetto, Marketing Communications Managerin
Neue Weyerstr. 9, 50676 Köln
0221 – 98654220, firstname.lastname@example.org
by Loanboox | Sep 10, 2021 | Borrow, Events
Digitally and by phone, we have been at your side over the last few months. Finally, we meet again in person.
From one day to the next, there was a home office instead of an office, digital meetings instead of meetings in person, digital contact instead of face-to-face meetings. Communication had to be scheduled, technically implemented and precisely planned. We proved last year that this works.
But what we also sensed: The exchange at a face-to-face meeting is hard to replace.
We are all the more excited to see you and talk to you at several events after more than a year. You will meet us at these state working conferences of the Professional Association of Municipal Treasurers:
What are the current challenges in your work? How can we support you in simplifying processes and further digitalising the treasury? We will listen to you and continue to be at your side.
You can make an appointment to talk to us at one of the events here. We look forward to meeting you!
by Loanboox | Jul 15, 2021 | Borrow, Insights, Invest
The Corona-Crisis in Germany had a massive impact on everyone, including communes. They needed a large financial assistance package from federal and state governments. The generated surplus is solely based on those aids. Without them, the biggest deficit in history would be standing in the budget books!
Meanwhile, the communal investments reached an all-time high. Whether or how these can be realized, is not predictable. Find out more.
The communal finance report published by the Bertelsmann Stiftung analyses, which financial burdens for communes arose during this crisis and what impact the governmental financing aides had.
Do you want more details? You can download the entire report from the Bertelsmann Stiftung for free.