Enhancing Climate Finance Readiness: A Review of Selected Investment Frameworks as Tools of Multilevel Governance

University of Delaware, Center for Energy & Environmental Policy, Working Paper Series. January 2018

44 Pages Posted: 15 Dec 2017 Last revised: 26 Mar 2018

See all articles by Lawrence Agbemabiese

Lawrence Agbemabiese

University of Delaware - Center for Energy and Environmental Policy (CEEP)

Joseph Nyangon

Center for Energy and Environmental Policy, University of Delaware

Jae-Seung Lee

Korea University - GREEN SCHOOL (Graduate School of Energy and Environment)

John Byrne

University of Delaware - Center for Energy and Environmental Policy (CEEP)

Date Written: January 3, 2018

Abstract

The International Renewable Energy Agency (IRENA) has estimated that to reduce greenhouse gas emissions and limit global mean temperature rise to well below 2° Celsius, new forms of low-carbon investment must be unlocked and cost-effectively doubled by 2030. This level of deployment of low-carbon solutions require doubling current investment in renewable energy to US$500 billion per year up to 2020 and tripling in the 2020s to reach US$900 billion each year up to 2030. However, the mechanisms for scaling up such investments remain constrained by high transaction costs, insufficient investment size, and limited market liquidity. We explore recent development of climate investment readiness frameworks (CIRFs) and their application in support of low-carbon development strategies. The paper focuses on two objectives driving the creation and use of such frameworks: (a) barriers to attracting large-scale private investment in climate-sensitive technologies, and (b) how these barriers can be reduced through effective capacity building mechanisms. We consider the utility of the main investment readiness (IR) frameworks with a particular focus on their contributions to developing a climate investment-friendly policy regime through appropriate governance reforms and technical capacity building measures. Important connections between the performance of climate investment readiness frameworks and broader governance issues are highlighted. Conclusions for strengthening such frameworks as tools of multilevel governance regimes are offered.

Keywords: Climate investment readiness, Renewable energy, Climate finance, Investability, International finance institutions, Public policy

JEL Classification: P28, F33, F55, F53, F13, F38, K32, O33, O32, O44, G18

Suggested Citation

Agbemabiese, Lawrence and Nyangon, Joseph and Lee, Jae-Seung and Byrne, John, Enhancing Climate Finance Readiness: A Review of Selected Investment Frameworks as Tools of Multilevel Governance (January 3, 2018). University of Delaware, Center for Energy & Environmental Policy, Working Paper Series. January 2018. Available at SSRN: https://ssrn.com/abstract=3082542 or http://dx.doi.org/10.2139/ssrn.3082542

Lawrence Agbemabiese

University of Delaware - Center for Energy and Environmental Policy (CEEP) ( email )

Graham Hall
Newark, DE 19716
United States

HOME PAGE: http://ceep.udel.edu/

Joseph Nyangon (Contact Author)

Center for Energy and Environmental Policy, University of Delaware ( email )

278 Graham Hall
Newark, DE DE 19716
United States

Jae-Seung Lee

Korea University - GREEN SCHOOL (Graduate School of Energy and Environment) ( email )

1 Anam-dong 5 ka
Seoul, 136-701
Korea, Republic of (South Korea)

John Byrne

University of Delaware - Center for Energy and Environmental Policy (CEEP)

Graham Hall
Newark, DE 19716
United States

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