Sources of Green Financing for Public Banks in North America (Canada, Mexico, and USA)

Autor: Schclarek Alfredo, Juncos Ignacio

Institución: UNC

Año: 2025

JEL: G21, H74

Resumen:

This paper examines how public development banks (PDBs) in North America can scale green lending by redesigning funding architecture. Using a Money-View T-account framework, we analyze three channels: recapitalization, green bond issuance, and originate-to-distribute securitization. Case analyses—Mexico, the U.S. Coalition for Green Capital, and British Columbia’s MFABC—show that credible payment assurance plus standardized issuance reduce spreads, extend maturities, and raise volumes. We also assess policies that shift demand (prudential treatment, collateral frameworks, refinancing windows, green QE). The paper offers a practical design menu for larger, cheaper, longer-dated finance. Our thesis: funding architecture is climate policy.