Citi explores new deal structures in battered offsets market

“A voluntary carbon credit can be blended into a green transaction as a first-loss layer,” Citi's Collins said. — Bloomberg

NEW YORK: Citigroup Inc is exploring entirely new deal structures it says have the potential to entice risk-averse investors to emerging markets via a controversial corner of climate finance.

The market for carbon credits, which has yet to be regulated, has untapped applications that – if done right – would help mobilise capital for climate projects, according to Jay Collins, vice-chairman of banking, capital markets and advisory at Citi.