Public Financial Institutions and the Low-carbon Transition: FIVE CASE STUDIES ON LOW-CARBON INFRASTRUCTURE AND PROJECT INVESTMENT

• Published in: OECD Environment Working Papers no. 72; p. 0_1
• Main Authors: Cochran, Ian, Hubert, Romain, Marchal, Virginie, Youngman, Robert
• Format: Paper
• Language: English
• Published: Paris Organisation for Economic Cooperation and Development (OECD) 29.10.2014
• Subjects: Alternative energy sources; Carbon; Case studies; Climate change; Development banks; Energy efficiency; Financial institutions; Infrastructure; Institutional investments; Institutions; International finance; International relations; Private sector; Project finance; Public sector; Renewable energy; Renewable resources; Risk reduction; Studies; Sustainable development; Sustainable transportation; United Kingdom > UK; France; Germany

Public financial institutions (PFIs) are well-positioned to act as a key leverage point for governments' efforts to mobilise private investment in low-carbon projects and infrastructure. The study identifies the tools, instruments and approaches used by five PFIs to directly support and scale-up domestic private sector investment in sustainable transport, energy-efficiency and renewable energy in OECD countries. Between 2010-2012, these five institutions - Group Caisse des Dépôts in France, KfW Bankengruppe in Germany, the UK Green Investment Bank, the European Investment Bank, and the European Bank for Reconstruction and Development - have provided over 100 billion euros of equity investment and financing for energy efficiency, renewable energy and sustainable transport projects. They use both 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.