1830166_1477413 - Contracts for Climate Change Campaign_FV_…

1830166_1477413 - Contracts for Climate Change Campaign_FV_…

Contracts for Climate Change Summary of Green Finance Clauses

Each of the precedents has a child’s name chosen by the drafting team. This is to encourage long-term thinking and to focus on the next generation as they will be most affected by the serious consequences if we fail to effectively respond to the climate crisis.

GREEN LOAN STARTER PACK — HARRISON’S CLAUSES

SUSTAINABILITY-LINKED LOANS — CASPER’S CLAUSE

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Issue More green loans need to be issued to mobilise green finance if UK is to meet its Net Zero obligations, yet there is no template wording available for use in green loans. Solution Harrison’s Clause would provide a template for a standardised set of green loan terms aligned with existing Green loan frameworks such as the Green Loan Principles. Impact The clause would mobilise more green finance to fight Climate Change by making green loan products accessible to a broader range of borrowers.

Issue Currently there are no precedent clauses to incorporate sustainability-linked (SLPs) principles into traditional finance documentation, standard terms and conditions, and finance products. Solution Casper’s Clause would provide a framework of precedent clauses which incorporate SLPs into lending products through optional riders that are divided into product categories and ESG goals. Impact The clause would foster more climate finance as the availability of accepted terms allowed for finance linked to sustainable goals would make it easier for lender to focus their practices on achieving ESG targets.