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The document outlines CPI's approach to defining climate finance, distinguishing between project-level costs and revenues and broader whole-economy expenditures. It defines climate finance as the sum of total investment costs and public framework expenditures, explicitly excluding revenue support to avoid double counting. The brief also identifies three primary entry points for public intervention to close 'viability gaps'—the difference between total project costs and generated revenues—which include increasing revenues, reducing project costs, and improving the overall investment climate through framework expenditures.

The document argues that public finance is essential to close the 'viability gap' for CSP, as more than 98% of plants built by 2012 required such support. It highlights that while international financial institutions (IFIs) provide critical long-term debt and concessional finance, currency hedging costs often offset these benefits. The authors suggest that deploying 5-15GW of CSP could reduce electricity production costs by 14-44%, potentially making the technology competitive in Morocco and South Africa. Key recommendations include moving away from flat tariffs to remunerate the flexibility provided by thermal storage and transitioning from international to local private debt to ensure long-term sustainability.

The report identifies that U.S. residential solar PV installation labor is significantly less efficient than in Australia and Germany, with U.S. installers averaging 9.4 labor hours per kW compared to 6.1 in Australia and 4.3 in Germany. It argues that the U.S. can reduce its installation time to approximately 7 labor hours per kW by adopting four key interventions: optimizing pre-installation, redesigning base installation (especially for clay tile roofs), using integrated racking, and reducing the number of system meters. The document attributes Australia's success to high market competition, a flat-rate payment structure for installers, and a regulatory environment that minimizes permitting and interconnection costs.

The research analyzes wind power contracts under Brazil's PROINFA feed-in tariff scheme, finding that a nonlinear payment structure led wind farms to systematically misreport capacity factors (CFs). By comparing reported and realized CFs for 41 operational projects, the authors demonstrate that reported values clustered around price schedule cutoffs, while realized values did not. This misreporting resulted in wind farms being contracted for 14% more energy than delivered and 12% of first-year payments being over-payments. The paper concludes that a simple 1% interest rate penalty on overpayments would have effectively eliminated the incentive to misreport.

The analysis evaluates the effectiveness of national mitigation policies across major emitting economies relative to their 2020 pledges. It finds that while India, China, and Russia are projected to exceed their targets, others like Canada and the USA likely require additional policies to fully deliver their pledges. The report also notes a widespread adoption of renewable energy targets and car efficiency standards among these nations.

The report analyzes 33 barriers across various sectors in Kenya that hinder private sector action on climate change, as identified in the National Climate Change Action Plan (NCCAP) 2013-2017. Key systemic issues include limited access to affordable long-term finance, high upfront costs for low-carbon technologies, and a lack of information on building business resilience. The document prioritizes six key areas for the Kenya Private Sector Alliance (KEPSA) and the Climate Business Information Network (CBIN) to address through government engagement: establishing a National Climate Fund, providing financial incentives for renewable energy, restructuring the Feed-in Tariff (FiT) policy, streamlining renewable energy approvals, improving energy efficiency standards, and coordinating climate-friendly agricultural programs.

The analysis of Brazil's PROINFA program reveals that wind farm developers systematically manipulated capacity factor (FC) estimates to maximize tariffs and contracted energy volumes. This behavior led to a 14% shortfall in expected energy production and 12% overpayments in the first year of operation. The study suggests that a simple 1% interest penalty on excess payments would have eliminated the incentive for such manipulation.

The study analyzes the PROINFA feed-in tariff in Brazil, finding that project developers systematically misreported capacity factors (CFs) due to a tiered price schedule and a lack of penalties for overpayments. This misreporting led to a 14% gap between expected and actual energy production and resulted in 12% of first-year payments being over-payments. The authors suggest that a simple 1% interest rate penalty on overpayments would eliminate this misreporting, making the policy more cost-effective.

The report finds that debt-related federal policies, particularly a combination of reduced-cost and extended-tenor debt, are more cost-effective in the long term than existing subsidies like generation-based incentives and viability gap funding. While existing policies often provide better short-term budget efficiency and production incentives, debt-related instruments offer superior subsidy-recovery potential and overall reduction in total subsidy costs. The analysis highlights a trade-off between long-term cost-effectiveness and short-term capital outlay, suggesting that interest subsidies and accelerated depreciation are viable short-term alternatives to current federal support levels.

The Philippines successfully phased out most consumer energy subsidies by deregulating the downstream oil industry in 1998 and restructuring the electricity sector via the Electric Power Industry Reform Act of 2001. To manage the social impacts of these reforms, the government implemented targeted measures including the Pantawid Pamilya Pilipino Program (4Ps) conditional cash transfers, lifeline electricity rates, and the Pantawid Pasada program for public transport operators. While the country has attracted private investment and improved energy efficiency, it continues to face challenges such as high electricity rates, power shortages in Mindanao, and fuel smuggling.

The report evaluates India's 'Green Industrial Policy' as a blend of market-failure corrections and traditional industrial development goals. While the 'green' objectives—energy access, security, and GHG abatement—have seen success, the industrial policy goals of creating a competitive domestic manufacturing base and fostering R&D have fared poorly. The solar sector has struggled against cheap imports, while the wind sector, though more mature, has seen a decline in global competitiveness and a recent drop in installations following the withdrawal of tax incentives.

The document examines Europe's position within a global 'leading group' of countries advancing energy efficiency, renewable energy, and carbon pricing. It argues that staying in this group is essential for Europe to attract investment, drive innovation, and reduce dependence on energy imports. The authors contend that energy prices are not the primary driver of global competitiveness for most industries, as 92% of German manufacturing spends less than 1.6% of revenue on energy. For the small minority of energy-intensive sectors, the report asserts that price differentials are primarily caused by natural resource endowments rather than climate policies, and that existing 'Carbon Leakage' protections in the EU ETS mitigate competitive risks. The report concludes that a coordinated European low-carbon strategy can create net-employment gains and maintain international credibility in climate negotiations.

The document argues that high debt costs in rapidly emerging economies can increase the cost of utility-scale wind and solar PV projects by 24-32%. It proposes two primary solutions: indexing renewable energy tariffs to foreign currencies to attract lower-cost international capital by mitigating currency hedging costs, and implementing government-backed concessional debt programs to reduce the total support required to make projects viable. The report provides detailed analysis of these mechanisms using India as a primary case study, suggesting that these interventions could lower the cost of renewable energy support by up to 30%.

The report analyzes the current state of concentrated solar power (CSP), noting that while it has potential to supply up to 10% of global energy demand by 2050, it remains expensive and heavily dependent on public support. The authors find that over 98% of total CSP investment to date has required public support. The document outlines a plan to evaluate the effectiveness of public finance through case studies in India and South Africa, expert dialogues, and a final lessons-learned paper. It details various public support mechanisms, including feed-in-tariffs, competitive tenders, reverse auctioning, and concessional loans, while highlighting the specific challenges and opportunities in emerging markets.

The report analyzes Germany's energy transition, focusing on the solar PV and wind energy sectors. It evaluates the impact of the Renewable Energy Sources Act (EEG) and its feed-in tariffs (FiT), comparing the economic, technological, and environmental outcomes of both sectors. While wind energy is found to be more competitive and innovative with lower relative subsidy costs, the solar PV sector has faced a severe crisis due to intense competition from Chinese suppliers. The document argues for a systemic approach to green industrial policy, suggesting reforms to the FiT to increase flexibility and competitiveness while addressing grid stability and institutional fragmentation.

The report proposes an 'accelerated scenario' for Fort Collins to reach an 80% reduction in CO2 emissions by 2030, twenty years ahead of its original 2050 target. This path involves reducing building energy use by 31%, achieving a carbon-neutral electricity system, and reducing transportation energy use by 48%. The analysis indicates that while this requires higher upfront capital, it would result in a net present value benefit of $260 million by 2030 and $2.0 billion by 2050 compared to business-as-usual. Key strategies include the deployment of distributed solar PV, increased wind capacity, smart growth urban planning, and the adoption of electric vehicles.

The author contends that the EU is abandoning government procurement (GP) as a fundamental industrial policy tool in favor of a neo-liberal model based on international competition and non-discrimination. While the EU pushes for openness to third countries and supports WTO rulings that restrict the use of local content requirements, some Member States, such as France and Italy, continue to use GP to incentivize renewable energy and domestic photovoltaic sectors. The text highlights a conflict between the EU's commitment to the Government Procurement Agreement (GPA) and the needs of national governments to foster innovative sectors and create jobs during economic crises.

The document examines the tension between the European Union's commitment to neoliberal public procurement rules and the need for strategic industrial policies to foster innovation and green energy. It highlights how the EU's adherence to international trade agreements, such as the GPA and GATT, limits the ability of member states to use local content requirements to stimulate domestic industries. The author contrasts the EU's approach with that of the US, Japan, and emerging economies like Brazil and China, who more aggressively use public procurement to support national industrial goals. A key example provided is the WTO dispute over Ontario's feed-in tariffs, where the Appellate Body's restrictive interpretation of 'public purpose' further limited the use of procurement for public policy goals. Despite this, some EU member states, such as France and Italy, have implemented local production requirements for photovoltaic energy to support their domestic sectors.

The report examines how environmental taxes and other market-based instruments can fund renewable energy deployment. Through eight case studies from diverse economies, it argues that EFR can generate a 'double dividend' by reducing pollution while providing stable funding for green energy. It highlights the importance of revenue recycling to maintain economic competitiveness and the role of earmarking in increasing policy transparency and public acceptance. For China, the report suggests transitioning from electricity surcharges to a system based on natural resource and carbon taxes to ensure long-term investment stability.

The document examines Germany's 'Energiewende', a policy aimed at reducing CO2 emissions by 80 percent by 2050 and phasing out nuclear power. It highlights that while feed-in tariffs (FiT) increased residential electricity prices, they successfully reduced the cost of solar PV by more than 80 percent and wind by about half, benefiting global energy markets. The author notes that renewable growth has more than offset the reduction in nuclear power, though the transition requires new 'flexibility markets' to manage intermittency and new business models for utilities facing declining profits from conventional generation.