Charting a Path for Finance Policy in Clean Infrastructure

The paper analyzes infrastructure finance in Brazil and India, finding that despite different structural models—Brazil's centralized development bank approach versus India's decentralized system—both remain dominated by public financing and lack the financial innovation seen in developed economies. It concludes that policy environments, such as Brazil's integrated regulatory and banking systems, are more influential than the finance models themselves, though centralized models demonstrate a greater ability to achieve scale and meet national policy targets.

• Despite their different structural models, infrastructure finance in both Brazil and India is dominated by public funding, shares similar leverage levels, and lacks the financial innovation, risk assessment, and insurance models typical of developed economies.
• The differences in infrastructure outcomes between the two nations are driven more by policy environments than by the finance models themselves; Brazil's national development bank works in tandem with a cohesive national regulatory and auction system, whereas India faces significant regulatory variations between states.
• Brazil's centralized development banking model successfully fostered greater scale and helped meet government policy targets, although it failed to achieve certain benefits like risk transfer and enhanced market liquidity.
• Both investment models present distinct governance and efficiency risks: centralized models may suffer from financial inefficiency and higher costs, while decentralized models can lead to suboptimal investments due to poor off-taker financial health or relationship-based investment practices.

APA

Climate Policy Initiative (2015). Charting a Path for Finance Policy in Clean Infrastructure. https://www.climatepolicyinitiative.org/publication/charting-a-path-for-finance-policy-in-clean-infrastructure/

Chicago

Climate Policy Initiative. Charting a Path for Finance Policy in Clean Infrastructure. 2015. https://www.climatepolicyinitiative.org/publication/charting-a-path-for-finance-policy-in-clean-infrastructure/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Charting a Path for Finance Policy in Clean Infrastructure |date=8 December 2015 |url=https://www.climatepolicyinitiative.org/publication/charting-a-path-for-finance-policy-in-clean-infrastructure/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2015charting, author = {{Climate Policy Initiative}}, title = {{Charting a Path for Finance Policy in Clean Infrastructure}}, institution = {Climate Policy Initiative}, year = {2015}, month = dec, url = {https://www.climatepolicyinitiative.org/publication/charting-a-path-for-finance-policy-in-clean-infrastructure/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }