Lessons and Innovations to Spur Green Investment in Developing Countries

The document outlines 14 key lessons for boosting low-carbon and climate-resilient investment. It highlights the role of fiscal policy in sustainable land use, the importance of government-backed assurances in Power Purchase Agreements to unlock debt finance, and the utility of public-private partnerships like the Global Innovation Lab for Climate Finance to develop bespoke financial instruments. Specific solutions mentioned include currency hedging to reduce renewable energy costs and guarantees for energy efficiency savings.

• Fiscal policy adjustments can promote sustainable land use by taxing production areas instead of volumes or profits, integrating sustainability indicators into tax holiday criteria, and linking local government revenue support to performance standards.
• National governments and development finance institutions can unlock private investment by addressing risk barriers, specifically through Power Purchase Agreements that include government-backed letters of credit and letters of comfort to secure long-term debt finance.
• Public-private partnerships, such as the Global Innovation Lab for Climate Finance and the India Innovation Lab for Green Finance, can identify and solve investment barriers through targeted consultations, crowdsourcing, and the development of innovative instruments.
• Specific financial instruments can address distinct barriers: currency hedging solutions reduce foreign exchange risk for renewable energy, and guarantees for energy efficiency savings address viability and risk gaps.
• There is a significant global gap in adaptation finance, particularly in climate-smart agriculture for small-scale businesses, where public-private instruments are needed to de-risk investments and close knowledge gaps.

APA

Climate Policy Initiative (2017). Lessons and Innovations to Spur Green Investment in Developing Countries. https://www.climatepolicyinitiative.org/publication/lessons-innovations-spur-green-investment-developing-countries/

Chicago

Climate Policy Initiative. Lessons and Innovations to Spur Green Investment in Developing Countries. 2017. https://www.climatepolicyinitiative.org/publication/lessons-innovations-spur-green-investment-developing-countries/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Lessons and Innovations to Spur Green Investment in Developing Countries |date=4 April 2017 |url=https://www.climatepolicyinitiative.org/publication/lessons-innovations-spur-green-investment-developing-countries/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2017lessons, author = {{Climate Policy Initiative}}, title = {{Lessons and Innovations to Spur Green Investment in Developing Countries}}, institution = {Climate Policy Initiative}, year = {2017}, month = apr, url = {https://www.climatepolicyinitiative.org/publication/lessons-innovations-spur-green-investment-developing-countries/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }