Financial Engineering of Climate Investment in Developing Countries

Title

Copyright

CONTENTS

LIST OF FIGURES AND TABLES

Figures

Tables

LIST OF ABBREVIATIONS

FOREWORD

PREFACE

Chapter 1 INTRODUCTION

Part I What Is

Chapter 2 CLIMATE CHANGE AND NATIONALLY APPROPRIATE MITIGATION ACTION

The Identity of a NAMA

PoAs and NAMAs

Defining Appropriateness

The Substance of NAMAs

Summing Up

Chapter 3 LEARNING FROM THE CDM

The CDM Experience

It’s a market – live with it

Thriving on domestic finance

Small is beautiful . . .

Cost inefficient emissions reduction

Additionality revisited

Reverse engineering the CDM

Summing Up

Chapter 4 DEFINING NAMA FINANCE

Government Investment Motives

Private Investment Motives

Summing Up

Chapter 5 THE FINANCING TOOLS . . .

Public Sector Sourcing Instruments

Environmental Fiscal Reform

Prices on products and services

Present tax-payers

Future tax-payers

Non-domestic sources

Public Sector Operational Instruments

Grants

Taxes

Loans and guarantees

What happened to the carbon credit?

Summing Up

Chapter 6 . . . AND THE FINANCIERS

The Institutional Investor

The Insurance Companies

Hybrid Sources of Financing

The philanthropic foundation trustees

The Banks

Multilateral development banks

National development banks

Green Bonds

Blending

Summing Up

Chapter 7 ENGINEERING AND LEVERAGING THE FINANCE

Transformation

Leveraging Finance from Different Sources

The ‘who goes first’ dilemma

Additional domestic public funding

Approaching international financiers

Engaging the local private sector

Attracting Foreign Direct Investment (FDI)

The Right Order of Leveraging

Summing Up

Part II What Ought to Be

Chapter 8 CHALLENGES TO NAMA FINANCE – MANDATES, AGGREGATION AND LACK OF INSTRUMENTS

The Aggregation Gap

The guarantee system and its shortcomings

The ECAs as aggregators

Mandates

Summing Up

Chapter 9 ROLES OF THE GREEN CLIMATE FUND

The Green Climate Fund and Risk

The Green Climate Fund and Green Bonds

The Green Climate Fund and Equity

The Green Climate Fund as Aggregator

Other Options

Putting the Pieces Together

Summing Up

Chapter 10 CONCLUSION

How to Start?

NOTES

Chapter 1 Introduction

Chapter 2 Climate Change and Nationally Appropriate Mitigation Action

Chapter 3 Learning from the CDM

Chapter 4 Defining NAMA Finance

Chapter 5 The Financing Tools . . .

Chapter 6 . . . And the Financiers

Chapter 8 Challenges to NAMA Finance – Mandates, Aggregation and Lack of Instruments

Chapter 9 Roles of the Green Climate Fund

Chapter 10 Conclusion

REFERENCES

INDEX