Assessing the Investment Climate for Climate Investments : A Comparative Clean Energy Framework for South Asia in a Global Context
Mitigating climate change while addressing development needs will involve a massive scale-up of investments in Renewable Energy (RE) and Energy Efficiency (EE). Most of these climate investments will come from the private sector, which will be the...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/114171468302459485/Assessing-the-investment-climate-for-climate-investments-a-comparative-clean-energy-framework-for-South-Asia-in-a-global-context http://hdl.handle.net/10986/26739 |
| Summary: | Mitigating climate change while
addressing development needs will involve a massive scale-up
of investments in Renewable Energy (RE) and Energy
Efficiency (EE). Most of these climate investments will come
from the private sector, which will be the main driver of
low-carbon growth in both developing and developed
countries, provided that countries have the right investment
climate for climate investment. The enabling environment for
climate investment in each country depends on a variety of
factors. These include macroeconomic determinants such as a
functioning bureaucracy and banking system; as well as a
narrower set of policy determinants such as renewable energy
targets, mandatory standards, preferential power tariffs,
waiver of import duties, and other fiscal incentives. While
the exact mix of policies, regulations and incentives will
depend on country-specific circumstances, the fact that they
exist sends the right signal to climate investors, by
providing them with legal certainty and lowering their costs
and risks. Policies, regulations and incentives also help to
level the playing field for climate investors in the face of
market realities that tend to favor the continued use of
carbon intense energy sources, such as support for fossil
fuels and the high costs of renewable energy technologies. |
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