The European Commission has published a report by Trinomics and Ricardo-AEA as part of the Scaling up Climate Finance in 2014 and beyond project. The report assesses the financing of meaningful climate mitigation initiatives in Chile, India, Vietnam, Ecuador and South Africa. The case studies focus in the transport and industrial energy efficiency sectors, as well as the renewable energy sector in Ecuador. The work specifically emphasises bankable ‘best practices’ of equity-based solutions and debt finance options with profitable project returns that have a large potential for upscaling to other sectors and countries. The roles for other types of financial instruments and interventions (e.g. risk mitigation, aggregation, grants) are also considered, as well as non-financial instruments (e.g. policy, capacity-building). The results, outcomes and suggestions in this report are evidence-based, drawing on in-country interviews, literature review and ‘real-life’ examples. This report informs financial institutions, institutional investors, and other private sector stakeholders regarding financing options in different countries and sectors, providing a basis for developing future business cases. Policy and regulatory options are provided for potential consideration by national governments (as well as Development Finance Institutions and Multilateral Development Banks), including incentives for engaging private sector actors and institutional investors from both developed and developing countries and the creation of a financially attractive environment for low-carbon investment.
The report can be found in the EU Bookshop.