Transition and emerging economies have difficulties developing their financial markets to a level that would provide access to long-term debt finance at an affordable cost. This report examines opportunities beyond the public sector for financing water and other environmental infrastructure. Specifically, opportunities for accessing savings through private financial and capital markets have been examined. The report identifies bottlenecks to the development of local financial markets for environmental infrastructure and discusses policy recommendations to tackle them.

Foreword
Executive Summary
Part I. Local Credit Markets and Environmental Investment: Lessons Learnt from Economies in Transition
-Introduction
-Local borrowing in support of urban environmental investment
-Three key requirements
-Developing local credit markets for environmental investment
-References
Part II. Country Case Studies
-China
-Kazakhstan
-The Russian Federation
-Ukraine