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

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  • Schclarek Alfredo
  • Juncos Ignacio

Abstract

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.

Suggested Citation

  • Schclarek Alfredo & Juncos Ignacio, 2025. "Sources of Green Financing for Public Banks in North America (Canada, Mexico, and USA)," Asociación Argentina de Economía Política: Working Papers 4839, Asociación Argentina de Economía Política.
    • Handle: RePEc:aep:anales:4839
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing

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