This working paper—developed under ADB’s NDC Advance technical assistance platform—sets out the important role that national climate finance vehicles can play in stimulating investment in low-carbon and climate-resilient development.
Authors
- DOI
- http://dx.doi.org/10.22617/WPS240495-2
- Dimensions
- 8.5x11
- ISSN
- 2789-0619(print) 2789-0627(PDF)
- Pages
- 60
- Published in
- Philippines
- SKU
- WPS240495-2
- pages
- 58
Table of Contents
- Contents 5
- Table and Figure 6
- Acknowledgments 7
- Abbreviations 8
- 1. Executive Summary 9
- 1.1 Background 9
- 1.2 Role of Climate Finance Vehicles 9
- 1.3 Readiness Criteria 10
- 1.4 Design Framework 11
- 1.5 Recommendations 12
- 2. Introduction 13
- 3. Market Barriers to Scaling up Climate Finance 15
- 4. Defining the Role of Climate Finance Vehicles 17
- Challenges with Climate Finance Vehicles 19
- 5. Readiness Criteria 22
- 5.1 Investment in a Strong Balance Sheet 22
- 5.2 Institutional and Policy Reforms 22
- 5.3 Legal Framework and Market Confidence 23
- 5.4 Public Investment Management Processes 23
- 5.5 Coordination with Fiscal and Monetary Authorities 23
- 5.6 Institutional Capacity and Governance 23
- 5.7 Market Conditions and Private Sector Engagement 24
- 6. Design Framework 24
- 6.1 Scope of the Vehicle 24
- 6.2 Addressing Market Imperfections 24
- 6.3 Funding Structure 24
- 6.4 Governance and Management 25
- 6.5 Investment Mandate 25
- 6.6 Concessionality 25
- 6.7 Financial Instruments and Support 26
- 6.8 Coordination and Integration 27
- 6.9 Operational Considerations 27
- 6.10 Risk Management 27
- 7. International Case Studies 28
- 7.1 Clean Energy Finance Corporation 28
- 7.2 Indonesia: PT Sarana Multi Infratruktur 36
- 7.3 Thailand Energy Efficiency Revolving Fund 43
- 8. Conclusions and Recommendations 54
- References 57
