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The Bujagali Hydropower Project in Uganda serves as a case study for the use of combined risk mitigation instruments—specifically the International Development Association's (IDA) partial risk guarantee (PRG) and the Multilateral Investment Guarantee Agency's (MIGA) political risk insurance (PRI)—to attract private capital in high-risk environments. The project mobilized nearly $300 million in commercial loans and private equity, achieving a ratio of almost one U.S. dollar of private capital for every two U.S. dollars of public financing. These instruments enabled commercial banks to offer loans with maturities of 16 years and lower interest rates, which reduced the required initial electricity tariff by between 7% and 60%. The resulting levelized cost of energy (LCOE) was approximately 107 USD/MWh, significantly lower than the cost of the emergency thermal power it replaced. While effective, such complex structures have been underutilized due to high transaction costs and restrictive DFI policies, though recent World Bank Group modernizations aim to expand these tools to smaller-scale renewable energy projects like solar and wind.

The report argues that while land use generates approximately a quarter of global greenhouse gas emissions and is highly vulnerable to climate change, current financial flows are predominantly 'business-as-usual' (BAU). To address this, the authors introduce three tools: the Landscape of Land Use Finance, the Financial Viability Gap Analysis tool, and the Public Finance Mapping tool. These tools are designed to help low and middle-income countries identify financial blockages, assess the viability of green projects, and ensure policy coherence to scale up private sector investment in climate-resilient agriculture and forestry.

The report argues that credit rating agencies may be artificially inflating the value of companies contributing to global warming by failing to account for climate risks, potentially repeating the systemic underestimation of risk seen during the credit crisis.

The report argues that high currency hedging costs in India make foreign debt nearly as expensive as domestic debt, hindering renewable energy targets. It proposes a government-sponsored FX hedging facility that could reduce hedging costs by nearly 50% and government support costs by up to 54%. The analysis suggests that while the expected cost of such a facility is 3.5 percentage points per year, the government would need a capital buffer of approximately INR 14.26 million/MW over 10 years to maintain a BBB- sovereign rating.

The report assesses the global climate finance landscape, highlighting the critical role of public finance in catalyzing private investment. It examines various financial tools—including green bonds, carbon pricing, and risk mitigation instruments—and analyzes the performance of multilateral development banks and bilateral agencies. The document emphasizes that while global flows have increased, significant gaps remain in tracking private finance and achieving the USD 100 billion goal due to low carbon prices and a lack of stable enabling environments in developing nations.

The paper argues that high currency hedging costs in India negate the benefits of cheaper foreign loans, increasing renewable energy costs by 30% compared to the US. Using a stochastic model, the authors find that a government-sponsored FXHF could provide a 10-year currency hedge at an expected cost of 3.5 percentage points, which is 50% lower than market rates. Such a facility could reduce the delivered cost of renewable energy by up to 19% and government support costs by up to 54%, provided the government manages extreme currency risks. To achieve a credit rating equivalent to India's sovereign rating of BBB-, the paper estimates a cumulative capital buffer of approximately 30% of the underlying loan would be required.

The Gümüşköy Geothermal Power Plant (GPP) represents the first instance in Turkey where the private sector financed the exploration of an unproven geothermal field. Developed by BM Holding, the 13.2MW project utilized a combination of USD 15.1 million in private equity and USD 34.5 million in debt, including a USD 24.9 million loan from the EBRD-funded Mid-size Sustainable Energy Finance Facility (MidSEFF) channeled through Yapikredi. The project's financial viability was secured by a ten-year USD-denominated feed-in tariff (FiT) of 10.5 USD¢/kWh, which increased equity returns from 10% to 16%. The study finds that while Turkey's geothermal sector grew rapidly from 30MW in 2008 to 405MW in 2014, most projects relied on government-proven fields. Gümüşköy demonstrates that private-led exploration can be cost-competitive, with an LCOE of 10.3 USD¢/kWh, and can build local banking capacity for sustainable energy finance. However, the report warns that scaling the sector requires addressing high carbon emissions from non-condensable gases, suggesting binary systems and carbon capture for industrial use as solutions.

The document argues that green project bonds can provide a viable alternative to traditional bank lending for green infrastructure PPPs, especially in the wake of Basel III regulations. It details the characteristics of project bonds, the risks involved—such as construction risk and negative carry—and the necessity of credit enhancements to achieve investment-grade ratings. The paper also provides guidance for public procurers on integrating bond financing into tender processes and highlights the growing global market for climate-themed bonds.

The report details the corporate structures and financial standings of Ecoener and Hidralia Energía, two Spanish companies involved in the Hidro Santa Cruz dam project in Guatemala. Ecoener holds an 85% stake in Hidro Santa Cruz, while Hidralia Energía holds 15%. The document outlines the financial assets and liabilities of both firms as of 2012-2013 and identifies the financial institutions supporting the dam project, including Norfund and CIFI.

The Global Landscape of Climate Finance 2014 executive summary analyzes global climate finance flows for 2013, noting a decrease in total investment and highlighting the role of falling technology costs and domestic policy frameworks in driving climate finance.

The report examines the high financial stakes of investor-state arbitrations, noting a rise in multibillion-dollar claims and the systemic risks posed to host states. It analyzes compensation claims, interest awards, and legal costs, ultimately recommending reforms such as streamlining processes, improving state defense capacities, and exploring alternatives like an international investment court.

The report identifies geothermal energy as a cost-competitive, low-carbon baseload power source, but notes that its deployment is hindered by high resource risks and long development timelines. It finds that 76-90% of geothermal project investments rely on public debt or equity, as the private sector is generally unwilling to fund the high-risk exploration phase. The document argues that while current policy support often focuses on the operational phase, public finance should be redirected toward the early stages of project development to attract more private capital.

The document outlines the systemic shifts required to integrate low-carbon energy, arguing that traditional power plant financing and grid structures are ill-suited for renewables. It proposes new financing models like YieldCos and Muni Finance to lower costs, emphasizes the need for regionally integrated transmission and updated balancing markets to manage variability, and discusses the disruptive impact of distributed generation and demand-side flexibility on traditional utility models.

The report identifies that current investor-owned utility and independent power producer models are ill-suited for the low-carbon transition, potentially raising renewable energy costs by up to 20%. It proposes a systemic evolution across five segments: generation (matching financing to risk profiles), transmission (improving renewable integration), market operation (valuing flexibility), distribution (adapting to distributed generation), and customer management (integrating demand response and electric vehicles). The document highlights the emergence of new financing models like YieldCos as a way to provide secure cash flows and lower costs.

The document outlines the financial requirements for Kenya's transition to a low-carbon economy, estimating that Ksh 1,085 billion is needed for the 2013-2017 National Climate Change Action Plan. It identifies key barriers to private investment, such as arduous project development processes, and suggests improvements including the implementation of the draft Climate Change Bill 2014. While Kenya has a strong track record in renewable energy investment and voluntary carbon markets, the briefing warns that compliance carbon markets are currently limited by oversupply and lack of access to the EU-ETS. It lists several domestic and international funding mechanisms available to Kenyan businesses for clean technology and energy efficiency.

The Rajasthan Sun Technique CSP plant in India was made viable through a combination of subsidized power purchase agreements (PPAs), long-maturity debt from international public lenders, and a first-mover strategy by a financially strong private developer. While the project achieved low investment and production costs, the broader National Solar Mission (NSM) phase one faced significant deployment delays due to the 'winner's curse' in reverse auctions, overestimation of solar resources, and financing challenges. The project demonstrated high local content (61-71%) and the benefits of linear Fresnel technology, though it lacked energy storage. Key recommendations for scaling CSP in India include improving auction design, incentivizing storage, and mobilizing local private finance to reduce reliance on foreign public debt.

The IFC-PPCR project in Nepal aims to build climate resilience in the agricultural sector by incentivizing private actors to train farmers in improved agronomic practices and expanding access to climate-adaptive finance. The project targets 15,000 farmers growing rice, maize, and sugarcane in the Terai region. Key strategies include using PPCR grants to cover start-up training costs for agribusinesses and developing a risk-sharing facility to encourage local commercial banks to lend to the high-risk agricultural sector. While agribusinesses see a business case through improved crop supply and quality, banks are motivated by market potential and regulatory mandates to increase agricultural lending. The project highlights the importance of early consultation and tailored capacity building to overcome public and private sector reluctance in Least Developed Countries.

The document identifies various project-level barriers to climate investment, such as externalities, financial market imperfections, and regulatory risks, and suggests tailored financial instruments—including grants, concessional loans, guarantees, and equity—to address them. It emphasizes that financial support should target projects that are societally beneficial but commercially unattractive, and that such instruments must be supported by a consistent policy environment to be effective.

The Kalimantan Forests and Climate Partnership (KFCP) was a publically funded demonstration project (2009–2013) aimed at rehabilitating degraded peat swamp forests in Central Kalimantan, Indonesia. While it did not fully achieve its objective of demonstrating effective rehabilitation at scale, it provided critical technical data, an innovative canal-blocking design, and a model for community engagement through 'Village Agreements'. The study estimates that if such projects can save 26 million tons of carbon over 30 years, they could be financially viable for private investors at carbon prices between AUD 4 and AUD 23 per ton. However, significant barriers remain, including contradictory land-zoning laws, uncertain revenue-sharing frameworks, and the need for robust national measurement, reporting, and verification (MRV) systems.

The executive summary of 'The Global Landscape of Climate Finance 2013' reports that global climate finance flows have plateaued at USD 359 billion, a figure significantly lower than estimated investment needs. The document emphasizes that public policies and resources act as the 'engine room' of the system, necessary to reduce risks and costs to attract private capital, which is essential for scaling low-carbon and climate-resilient growth.