Local Capital Markets for Environmental Infrastructure : Prospects in China Kazakhstan Russian Federation and Ukraine 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.