This report outlines the measures that South Africa and its partners can take to reduce climate transition risk, avoid potential economy-damaging risk concentrations and in so doing, reduce the costs associated with the decarbonisation of the South African economy.
A sustainable reduction in the cost of capital for renewable energy projects will take a multi-pronged approach, which could herald a range of broader changes to institutional investor/asset manager relations across a range of timescales. The most effective catalyst will depend on the market.
This paper by the Climate Policy Initiative (CPI) examines two financing models for better infrastructure development in emerging economies. The paper compares the more centralized, development bank driven infrastructure investment model in Brazil with the decentralized model in India.
Europe’s policy and finance environment has enabled some of the fastest deployments of renewable assets globally. In 2016, it became the first region in the world to surpass 100GW of solar PV capacity, with 140GW of wind power installed.
This report examines the availability of capital for renewable energy, the cost-effectiveness of different mixes of capital and investors used in meeting Germany’s medium and long-term deployment goals, and the potential impact of policies on this mix of investment.
Given their convening power, technical expertise and their ability to mitigate risks, multilateral and national development banks are particularly well placed to coordinate these activities, globally, and at the regional and country levels.