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The report identifies 'green shoots of recovery' in securitisation markets, particularly through increased residential mortgage backed securities (RMBS) in the UK and trade finance securitisations. While investor demand is returning, the report argues that supply is constrained by heavy government intervention (such as by the ECB and US federal agencies) and stringent new regulations like Basel III and Solvency II. The author suggests that the normalisation of these markets is vital for climate finance, as 95% of project finance globally comes from bank lending, and securitisation allows banks to recycle limited capital to fund renewable energy and energy efficiency projects.

The document examines the transition of Chinese finance in Africa from peripheral concessional lending to a more central, diverse role involving commercial banking and strategic investments. It details the internal reforms of the Chinese banking system that enabled international expansion and uses case studies of South Africa, Nigeria, and Mozambique to illustrate different engagement strategies. The analysis highlights a shift toward joint ventures and partnerships with local banks to mitigate risk and gain market knowledge, while also noting the growing influence of the renminbi in trade settlements.

This working paper by the Climate Policy Initiative (CPI) establishes a framework for diagnosing policy effectiveness by analyzing the link between policy, finance, and outcomes. It argues that policies impact the investment environment by altering the allocation of costs, revenues, and risks, which subsequently affects the types of investors attracted to projects. The paper details the specific requirements and risk tolerances of different investor classes—including debt, equity, mezzanine, and venture capital—and explains how these dynamics shift across the development, construction, and operation stages of a project. CPI intends to use this framework for future case studies to test hypotheses on financial structures and contractual risk allocation.

The document describes a project to assess the impact of policy on clean energy financing, focusing on whether policies encourage a sustainable and cost-effective mix of investments. It highlights the role of risk allocation and the importance of project financing eligibility in determining the overall cost of energy projects. The project aims to analyze debt, equity, venture capital, and mezzanine finance across different technology maturity levels and global regions.

The document analyzes the intersection of global financial regulatory reforms (Basel III, G20) and regional trade negotiations in the SADC region. It argues that while the 2008 crisis did not directly collapse South African banks, the resulting 'second-round' effects—liquidity freezes and increased risk premiums—severely impacted trade and project finance. The author concludes that G20-driven reforms, adopted by South Africa, will likely act as new, non-negotiable barriers to trade in financial services across the SADC region, potentially reducing cross-border lending to non-investment grade African countries.

The document examines China's role in Botswana's infrastructure development, noting a shift from government-led aid to competitive public tenders. It highlights the competitive advantages of Chinese firms—such as low-cost bidding and hands-on management—while addressing challenges regarding quality standards and skilled labour shortages. It also introduces a new commercial financing model involving the Industrial and Commercial Bank of China and Standard Bank for the Morupule B Power Station project.

The document analyzes the evolution of China's financial sector and its strategic move into Africa. It highlights how state-owned banks, such as ICBC and CDB, support resource acquisition through project finance and infrastructure loans. The paper identifies a shift toward commercial banking, exemplified by ICBC's 2007 investment in South Africa's Standard Bank, and discusses the influence of Chinese migration and excess foreign reserves on this expansion.

The N4 toll road was established via a 30-year, R3 billion concession signed in 1996 between South Africa and Mozambique, operated by Trans-African Concessions (TRAC). The project utilized a financing structure of 20% equity and 80% debt, with the latter guaranteed by both governments. To manage user payment risks in Mozambique, TRAC implemented cross-subsidization using revenues from the South African section and provided discounts to regular Mozambican users. The road acted as a catalyst for further regional investment, including the Maputo Port and the Mozal aluminium smelter.

The report presents a business case for Free, Prior, and Informed Consent (FPIC), arguing that failing to secure community approval creates significant financial, operational, and reputational risks. Through four case studies in the Philippines, Argentina, Thailand, and Peru, it demonstrates that while FPIC requires an iterative process of information sharing and negotiation, the costs are minimal compared to the potential losses from project delays, asset write-downs, and lost revenues. The authors recommend that project sponsors, financiers, and host governments integrate FPIC into their decision-making and permitting processes to avoid costly conflicts.

The report evaluates the current state of voluntary corporate social responsibility (CSR) initiatives addressing business operations in violent conflict zones. It identifies significant gaps in knowledge, stakeholder consensus, and participation from developing countries. The authors argue that while some guidance exists—particularly for the extractive sector—it is largely policy-based rather than operational. The document provides a framework for governments to move beyond simple compliance toward a 'peacebuilding' approach, suggesting roles for the public sector such as mandating legal baselines, facilitating research, and endorsing best practices to strengthen the enabling environment for conflict-sensitive investment.

Western Oil & Gas Company evaluated a $2 million capital improvement project to upgrade motor systems at its Richmond, California refinery to improve energy efficiency and equipment reliability. Despite these benefits, the project was initially deemed unwise because the necessary diversion of resources risked disrupting 24-hour plant operations and the project did not compete favorably with other capital expenditures. To address these risks and balance them against the benefits, Western engaged an energy services company (ESCo) called Energy Services and a financing firm, ABB Energy Capital, to explore various financing options.

The document analyzes a $2 million energy efficiency project at a Western Oil & Gas refinery in Northern California. It examines how strategic and organizational barriers—such as lean staffing and corporate capital controls—can prevent the implementation of financially viable projects. The text compares three financing models: internal funding, capital leasing, and performance-based financing. It concludes that performance-based financing, supported by an Energy Services Company (ESCo) and a specialized financier (ABB Energy Capital), was the most effective route because it bypassed internal capital review processes and shifted technical and financial risks to outside experts. The analysis also highlights the role of Demand-Side Management (DSM) payments from utilities as a critical incentive for ESCos to implement such projects.

The report identifies significant barriers to renewable energy investment in Indonesia, including high upfront capital requirements and a lack of long-term debt financing from local banks. While ten organizations provide 13 guarantee products in the Indonesian market, none specifically target the renewable energy sector. The analysis argues that a tailored credit guarantee, potentially developed by PT SMI, could address security gaps for small developers and improve the risk-return profile of projects. However, implementation faces challenges such as competition from lower-cost corporate guarantees and the 'first demand' requirements of financial institutions.

The FAST-Infra initiative aims to close the sustainable infrastructure investment gap by transforming these assets into a mainstream, liquid asset class. A central component is the FAST-Infra Technology Platform, which seeks to digitize and standardize the 'artisanal process' of project development and finance. The platform intends to reduce project development time by 50%, simplify due diligence, and facilitate investor matching and loan securitization. Developed by a consortium including IBM, HSBC, and Standard Chartered, the initiative has produced a clickable prototype and plans to establish a legal vehicle for its consortium in 2022.

The SAVi assessment of the N’Diaye wind farm in Senegal demonstrates that while coal-fired power may appear more financially attractive under traditional business-as-usual scenarios, the wind farm provides superior societal value and lower costs when climate risks and externalities are integrated. The wind project is estimated to generate 158.7 MW of electricity and create significantly more employment (66 FTE/year) with substantially lower life cycle emissions (0.1 million tonnes of CO2) compared to coal (6.1 million tonnes) and HFO (2.2 million tonnes). When accounting for climate risks and externalities, the levelized cost of electricity (LCOE) for the wind farm is CFA 43,266 per MWh, making it more affordable than coal (CFA 52,998 per MWh) and HFO (CFA 155,728 per MWh).

The report examines how Chinese state-owned banks, having undergone domestic reform and international listing, are expanding into Africa. This expansion is driven by the need for resource security and the 'follow your client' model, where banks support Chinese state-owned enterprises (SOEs) and SMEs. Key mechanisms include project finance via China ExIm Bank and China Development Bank, the establishment of the China-Africa Development Fund, and strategic equity investments, such as ICBC's 20% stake in South Africa's Standard Bank.