Financial Institutions, instruments and the transition to a low-carbon, resilient economy
The financing of the transition to a low-carbon economy will require require a broad range of financial actors and the use of a variety of financial instruments. I4CE is working to better understand how different financial institutions and instruments are currently supporting these financial flows and investments, as well as looking at how this can be scaled up moving forward.
Our work to date has focused on public financial institutions have an important role to play at national level in financing a transition to a low-carbon economy. Often key players in low-carbon infrastructure projects, these institutions can facilitate the involvement of private players in the financing of sustainable transport, energy efficiency and renewable energy projects. Actions has been concentrated in three principal areas: the use of traditional and innovative approaches to link low-carbon projects with finance through enhancing access to capital; facilitating risk reduction and sharing; improving the capacity of market actors; and shaping broader market practices and conditions.
I4CE is also exploring the role of different financial instruments and their contribution to a low-carbon, resilient economy. This work looks at two principal areas: how to can individual instruments scale up and support increased end climate-consistent investment. Secondly, how can the environmental integrity of these instruments be ensured. To date, the principal areas of focus are green bonds and green credit lines.
OCDE; AFD; CDC; BID