The CEO of iSwiss Bank proposes a pragmatic approach to support green projects, even in emerging countries.
At COP29 in Baku, Azerbaijan, Christopher Aleo, CEO of iSwiss Bank, is set to present an innovative solution to one of the central challenges of the global energy transition: making renewable energy investments more accessible and appealing to private investors. With extensive experience in structured finance, Aleo will introduce securitization as a key tool to attract billions in private capital for clean energy projects, including those in less developed countries.
COP29, one of the premier international events in the fight against climate change, gathers delegates from over 190 countries to develop shared strategies and innovative solutions to reduce greenhouse gas emissions and mitigate the effects of climate change. This year's key goal is to raise one trillion dollars to fund sustainable initiatives an ambitious challenge that underscores the complexities of the transition to a low-carbon global economy. Climate finance will be a core focus of the conference, with participants examining how to mobilize large-scale capital and distribute it effectively.
Christopher Aleo is among the anticipated key figures at this year's COP. A finance innovator, he introduced securitization for renewable energy projects in Europe, transforming revenue streams from wind farms, solar plants, and other sustainable sources into tradable securities. This model enables the conversion of future project revenues into attractive financial instruments for private markets. "We can't expect to meet the growing global energy demand with just solar or wind without adequate financial structures to support and expand these projects," Aleo said. "Making these investments appealing to private investors is essential to accelerating the energy transition."
Securitization could revolutionize access to financing for renewable energy. This approach allows sustainable projects to become attractive investments for private investors, delivering a combination of financial returns and positive environmental impact. In practice, securitization reduces the risk associated with individual projects, facilitating the flow of private capital into green initiatives.
In 2024, iSwiss Bank has already allocated over one billion euros to the securitization of energy projects, solidifying its position as a leader in this field. Aleo will also present practical examples at COP29, such as recent projects launched in Nigeria, where securitization raised one billion euros to finance renewable energy installations. With the support of iSwiss Hedge Fund, the group's investment fund based in New York, Aleo aims to expand this model globally, targeting at least 12.4 billion euros in funding by 2025.
For Aleo, climate finance is more than just an investment strategy; it's a personal mission. "It's a great honor for me and my family to contribute so significantly to the future of our planet," he said. "I hope our work will send a positive message at COP29 and encourage other financial institutions to join us in this vision for a sustainable future." His proposal stands out not only for its innovative approach but also for its concrete potential to make renewable energy projects accessible in areas that have historically struggled to attract investment.
COP29 in Baku represents a critical opportunity to discuss and decide on concrete climate actions. As the world faces unprecedented challenges, such as rising global temperatures and extreme weather events, the role of finance is becoming increasingly central to enabling the energy transition. Christopher Aleo's intervention marks a pivotal moment in this context, offering a clear path for private capital to join the fight against climate change and to build a sustainable future on a global scale.
