Assessing the Investment Climate for Climate Investments : A Comparative Framework for Clean Energy Investments in South Asia in a Global Context

• Main Author: Mani, Muthukumara S
• Format: Publication
• Language: English
• Published: World Bank, Washington, DC 01.09.2012
• Subjects: AIR; ALTERNATIVE ENERGY; ALTERNATIVE ENERGY DEVELOPMENT; APPLIANCE STANDARDS; APPROACH; APPROPRIATE TECHNOLOGY; AQUIFERS; AVAILABILITY; BALANCE; BATTERIES; BIOMASS; BIOMASS POWER; BIOMASS ­ GASIFICATION; CAPITAL COST; CAPITAL COSTS; CARBON; CARBON EMISSIONS; CARBON ENERGY; CARBON TECHNOLOGIES; CARBON TRADING; CLEAN DEVELOPMENT MECHANISM; CLEAN ENERGY; CLEAN ENERGY TECHNOLOGIES; CLEAN ENERGY TECHNOLOGY; CLEAN TECHNOLOGIES; CLEAN TECHNOLOGY; CLIMATE; CLIMATE CHANGE; CLIMATE RISK MANAGEMENT; CLIMATE VARIABILITY; CLIMATES; CLOUD COVER; CO2; COAL; COMBUSTION; COMMERCIAL BANKS; COMPARATIVE ANALYSIS; COMPLIANCE COSTS; CONDITIONERS; CONSTRUCTION COST; CONSTRUCTION MATERIALS; CONVENTIONAL ENERGY; DEVELOPED COUNTRIES; DEVELOPING COUNTRIES; DEVELOPING COUNTRY; DIESEL; DIESEL GENERATORS; DIFFUSION; DISCOUNT RATES; DISTRIBUTION LOSSES; DISTRIBUTION OF ELECTRICITY; ECONOMIC DEVELOPMENT; ECONOMIC GROWTH; ECONOMICS; ELECTRIC POWER; ELECTRIC POWER GENERATION; ELECTRIC UTILITIES; ELECTRIC VEHICLES; ELECTRICITY; ELECTRICITY BILLS; ELECTRICITY GENERATION; ELECTRICITY PRICES; ELECTRICITY SUPPLY; EMERGING MARKETS; EMISSION; EMISSION TARGETS; EMISSIONS ABATEMENT; EMISSIONS TARGETS; EMPIRICAL EVIDENCE; EMPLOYMENT; ENABLING ENVIRONMENT; ENABLING ENVIRONMENTS; ENERGY CONSERVATION; ENERGY CONSUMPTION; ENERGY COSTS; ENERGY DEMAND; ENERGY ECONOMICS; ENERGY EFFICIENCY; ENERGY EFFICIENCY STANDARDS; ENERGY MARKET; ENERGY POLICIES; ENERGY POLICY; ENERGY PRODUCTS; ENERGY SAVINGS; ENERGY SECURITY; ENERGY TAXES; ENERGY USAGE; ENERGY USE; ENVIRONMENTAL; ENVIRONMENTAL BENEFITS; ENVIRONMENTAL ECONOMICS; ENVIRONMENTAL PROTECTION; ENVIRONMENTAL REGULATION; ENVIRONMENTS; EXCHANGE RATE; EXTERNALITIES; FEEDSTOCK; FINANCIAL ASSISTANCE; FINANCIAL CRISIS; FINANCIAL INCENTIVES; FINANCIAL SECTOR; FINANCIAL SUPPORT; FIXED COSTS; FOREIGN EXCHANGE; FOREIGN INVESTMENT; FOREIGN INVESTORS; FORESTRY; FORESTS; FOSSIL; FOSSIL FUEL; FOSSIL FUEL IMPORTS; FOSSIL FUELS; GENERATION; GHG; GLOBAL ENVIRONMENT FACILITY; GREENHOUSE; GREENHOUSE GAS; GREENHOUSE GAS EMISSIONS; GREENHOUSE GAS REDUCTIONS; HEAT; HEAT RECOVERY; HIGH ENERGY INTENSITY; HIGHER ENERGY PRICES; HOST COUNTRIES; HYDRO POWER; HYDROPOWER; INCOME; INDUSTRIAL WASTE; INSURANCE; INTELLECTUAL PROPERTY; INTEREST RATE; INTERNATIONAL BANK; INTERNATIONAL FINANCE; INVESTMENT ACTIVITY; INVESTMENT CLIMATE; INVESTMENT CLIMATES; INVESTMENT DECISIONS; INVESTMENT RISK; IRRADIATION; LOW-CARBON; MACROECONOMIC STABILITY; MACROECONOMIC VARIABLES; MARKET CONDITIONS; MARKET FAILURE; MARKET FAILURES; MARKET PRICES; MATURITY; MINERAL RESOURCES; OIL; ONSHORE WIND; OPPORTUNITY COSTS; PENALTIES; PERFORMANCE STANDARDS; POLICY ENVIRONMENT; POLICY INSTRUMENTS; POLICY MAKERS; PORTFOLIO; POTENTIAL INVESTORS; POWER; POWER GENERATION; POWER INVESTMENTS; POWER PLANT; POWER PLANTS; POWER PRODUCER; POWER PRODUCERS; POWER PROJECT; POWER PURCHASE AGREEMENTS; POWER SECTOR; POWER SOURCES; PRIVATE INVESTMENT; PUBLIC GOOD; PUBLIC UTILITIES; PURCHASING POWER; RAW MATERIAL; RAW MATERIALS; REAL ESTATE; REGULATORY FRAMEWORK; RENEWABLE ENERGY; RENEWABLE ENERGY DEVELOPMENT; RENEWABLE ENERGY SUPPLY; RENEWABLE PORTFOLIO STANDARDS; RENEWABLE POWER; RENEWABLE SOURCES; RENEWABLE TECHNOLOGIES; RISK MANAGEMENT; RULE OF LAW; SILICON; SMALLER TURBINES; SOLAR CELLS; SOLAR ENERGY; SOLAR PANELS; SOLAR POWER; SOLAR PROJECTS; SOLAR RADIATION; SOLAR SYSTEMS; SOURCE OF ENERGY; STREAMS; SURPLUS POWER; SUSTAINABLE DEVELOPMENT; SUSTAINABLE ENERGY; TARIFF STRUCTURE; TAX; TAX CREDITS; TAX EXEMPTIONS; TAX INCENTIVES; TECHNOLOGICAL CHANGE; TOTAL COST; TRANSMISSION FACILITIES; TRANSMISSION LINES; UNEP; UTILITIES; UTILIZATION OF RENEWABLE ENERGY RESOURCES; VOLTAGE; WIND; WIND ENERGY; WIND EQUIPMENT; WIND POWER; WIND POWER CAPACITY; WIND POWER GENERATION; WIND SPEED; WIND SPEEDS; WIND TURBINES

One of the strong messages that came out of the recent United Nations Climate Change conference in Durban was that the private sector has to play an important role if we are to globally move toward a low carbon, climate resilient -- or "climate compatible" -- future. However, private investment will only flow at the scale and pace necessary if it is supported by clear, credible, and long-term policy frameworks that shift the risk-reward balance in favor of less carbon-intensive investment. The private sector also needs information on where to invest in clean energy in emerging markets, and it needs policy support to lower investment risk. Barriers to low carbon investments often include unclear and inconsistent energy policies, monopoly structures for existing producers, stronger incentives for conventional energy than clean energy, and a domestic financial sector not experienced in new technologies. With the long-term goal of promoting and accelerating the implementation of climate mitigation technologies, this study aims to facilitate development of a policy framework for promoting sustainable investment climates for clean energy investments in South Asia and elsewhere. A key aspect of the study is also the pilot construction of the Climate Investment Readiness Index for several countries. The index is a tool to objectively evaluate the enabling environment for supporting private sector investment in select climate mitigation or low carbon technologies.