Selecting effective financial instruments to support action on climate change
This guide presents a curated selection of resources on finance for Nationally Determined Contributions (NDCs) and Long-term Strategies (LTS). It is designed to help Global Climate Action Partnership practitioners find high-quality resources that meet their specific needs, avoiding time-consuming searches on the internet. It will be useful to individuals working on, or interested in, NDC and LTS finance in both developed and developing countries.
- 1. Understanding the situation
- 1.1 Understanding current flows
- 1.2 Assessing financing needs
- 1.3 Assessing capacity
- 1.4 Identifying and overcoming barriers
- 2. Planning and coordinating
- 2.1 Institutions and governance
- 2.2 National finance strategies
- 2.3 Investment plans
- 2.4 National climate funds
- 2.5 Green investment banks
- 4. Using public finance
- 4.1 Managing national finance
- 4.2 International climate finance
- 4.3 Climate finance readiness
- 4.4 The Green Climate Fund
- 4.5 Direct access
- 5. Designing financial instruments
- 5.1 General resources
- 5.2 Sources of private finance
- 5.3 Risk mitigation
- 5.4 Guarantees
- 5.5 Feed-in tariffs and auctions
- 5.6 Taxes and tax incentives
- 5.7 Carbon pricing
Green & resilience banks: How the green investment bank model can play a role in scaling up climate finance in emerging markets
This paper, authored by the Coalition For Green Capital, the Natural Resources Defense Council and Climate Finance Advisors, shows how green investment banks are succeeding in countries such as Australia, Japan, Malaysia, UK, and the USA. Green investment banks are specialized public financing authorities set up to persuade private investors to increase and accelerate their investment in renewable energy and energy efficiency. The paper also explores the potential of the green investment bank model in emerging and developing economies.
Green investment banks: Scaling up private investment in low-carbon, climate-resilient infrastructure
This report provides the first comprehensive study of publicly capitalized green investment banks, analyzing the rationales, mandates, and financing activities of this relatively new category of public financial institution. Based on the experience of over a dozen green investment banks and similar entities, the report provides a nonprescriptive stocktaking of the diverse ways in which these public institutions are catalyzing private investment in low carbon, climate resilient infrastructure and other green sectors, with a spotlight on energy efficiency projects. The report also provides practical information to policymakers on how green investment banks are being set up, capitalized, and staffed.
This Policy Perspective describes the relatively new phenomenon of publicly capitalized green investment banks, and examines why they are being created and how they are mobilizing private investment.
This report explores the opportunity for a green bank in India, considers its potential contribution to a number of India’s mitigation objectives, and provides other examples of green banking measures from international contexts.