Vehicles, Availability, and Governance of International Public Finance for Climate-Friendly Investment

The report examines the role of public policy in catalyzing private investment for climate mitigation and adaptation, specifically in the energy, forestry, agriculture, transport, building, and waste sectors. It analyzes success stories from Brazil, China, and India, highlighting the effectiveness of targets, carbon pricing, and regulatory instruments. Additionally, it surveys 17 international public funding sources, including multilateral funds like the Climate Investment Funds and bilateral initiatives such as the Amazon Fund, detailing their governance, eligibility, and financial instruments.

• Public policies are critical for attracting climate-friendly investment by reducing risk and uncertainty and improving profitability. The report notes that "strong policies that provide long-term certainty and enable credible mid- to long-term risk assessment" are commended by investors, while policy uncertainty in the United States has led capital to seek opportunities elsewhere.
• Brazil has successfully attracted clean energy investment through a mix of renewable energy standards, tax incentives, and auctions. In 2010, Brazil's clean energy investment totaled US$7.6 billion, and it has implemented specific programs such as PROÁLCOOL for ethanol and PROINFA for alternative electric energy sources.
• China leads globally in clean energy investment, totaling US$54.4 billion in 2010. Its success is attributed to strong government determination and a comprehensive set of laws, including the Renewable Energy Law (2005) and the Energy Conservation Law (1998), which create significant market signals.
• India's approach to clean energy involves a combination of renewable energy standards, tax credits, and the Jawaharlal Nehru National Solar Mission, which targets 20 GW of solar power by 2022. In 2010, India's clean energy investment reached US$4 billion.
• International public finance for climate-friendly investment is fragmented across various multilateral and bilateral vehicles. The World Bank serves as the trustee for seven of the ten analyzed multilateral funds, including the Clean Technology Fund and the Strategic Climate Fund.
• There is a significant gap between pledged and deposited funds in international climate finance. Of US$26.3 billion pledged to the analyzed funds, only US$10.1 billion (38.6 per cent) had been deposited as of the reporting period.
• The Adaptation Fund, funded by a 2 per cent share of proceeds from the Kyoto Protocol's Clean Development Mechanism, focuses on concrete projects that are "country-driven and based on the needs, views and priorities of eligible Parties."
• The Climate Investment Funds (CIF) consist of the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF). The CTF focuses on low-carbon technologies in power, transport, and energy efficiency, while the SCF manages programs like the Pilot Program for Climate Resilience (PPCR) and the Forest Investment Program (FIP).
• Bilateral funds often have more restricted eligibility and are managed under the institutional structures of the donor countries. Examples include the Amazon Fund (Brazil), the Indonesia Climate Change Trust Fund, and Germany's International Climate Initiative.

APA

Brauch, M. D., & Cosbey, A. (2011). Vehicles, Availability, and Governance of International Public Finance for Climate-Friendly Investment. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/vehicles_availability.pdf

Chicago

Brauch, Martin Dietrich, and Aaron Cosbey. Vehicles, Availability, and Governance of International Public Finance for Climate-Friendly Investment. International Institute for Sustainable Development, 2011. https://www.iisd.org/system/files/publications/vehicles_availability.pdf.

Wikipedia

{{cite report |last1=Brauch |first1=Martin Dietrich |last2=Cosbey |first2=Aaron |title=Vehicles, Availability, and Governance of International Public Finance for Climate-Friendly Investment |publisher=International Institute for Sustainable Development |date=May 2011 |url=https://www.iisd.org/system/files/publications/vehicles_availability.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{brauch2011vehicles, author = {Brauch, Martin Dietrich and Cosbey, Aaron}, title = {{Vehicles, Availability, and Governance of International Public Finance for Climate-Friendly Investment}}, institution = {International Institute for Sustainable Development}, year = {2011}, month = may, url = {https://www.iisd.org/system/files/publications/vehicles_availability.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }