Working PaperFinance

Lessons and Innovations to Spur Green Investment in Developing Countries

Climate Policy Initiative, New Climate Economy

This brief compiles key lessons on how governments and public finance institutions can reduce risks and costs and thus attract green investment.

Authors

Climate Policy Initiative

New Climate Economy

Overview

April 2017

This brief compiles key lessons observed by Climate Policy Initiative (CPI) in original, peer reviewed reports and briefs published in 2015 and 2016. For over five years, CPI has documented, assessed, and designed a range of public finance interventions and inventions that aim to boost low-carbon, climate-resilient investment, especially in developing countries. This brief brings together lessons of how governments and public finance institutions can reduce risks and costs and thus attract green investment, including by:

  1. Identifying the key gaps that public policies and resources can address in order to drive green investment from the private sector.
  2. Providing insights on how effective fiscal policy design in Indonesia could incentivize more productive and sustainable forms of land use.
  3. Sharing lessons learned in Kenya on how national governments and development finance institutions can leverage private investment.
  4. Revealing the process of developing innovative financial instruments to address persistent barriers to private investment through public-private partnerships, such as the Global Innovation Lab for Climate Finance and the India Innovation Lab for Green Finance, and discussing specific instruments.

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