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This research paper proposes a theoretical framework for designing a Payment Security Mechanism (PSM) to mitigate counterparty credit risk for renewable energy projects in India. The authors define a PSM as a funded capital reserve providing interest-free working capital to projects when state-owned electricity distribution companies (DISCOMs) default on payments. Using a probabilistic methodology and a sample of eight DISCOMs, the paper estimates the size of payment support needed to enhance project credit ratings, concluding that while a PSM can improve ratings up to a BB level, it cannot achieve investment-grade status (BBB or higher) due to non-counterparty risks.

This research paper by the Climate Policy Initiative examines the barriers preventing adaptation and resilience companies—specifically those providing climate risk analytics—from scaling in developing countries. It proposes a design for a technical assistance (TA) facility, the CRAFT Resilience Accelerator, to be linked with a private equity fund to catalyze the market by addressing context, business model, and internal capacity barriers.

This report by the Climate Policy Initiative and Indian School of Business examines the challenges of integrating high levels of renewable energy into India's power grid, specifically focusing on the need for system flexibility and the risk of coal-based assets becoming stranded. The authors propose that converting existing baseload coal plants into flexible plants is a cost-effective short-term solution to provide necessary operational reserves and mitigate financial risks for investors.

This executive summary, produced by Jawaharlal Nehru University and the Indian Institute of Technology for the Climate Policy Initiative, analyzes the macroeconomic impacts of renewable energy penetration in India. Using macro-econometrics and time series methods, the report examines the relationship between renewable energy and factors such as GDP, fiscal deficit, energy imports, and employment to project future energy scenarios and job creation potential.

This research paper by the Climate Policy Initiative (CPI) outlines methodological approaches for assessing the additionality of climate investments, specifically drawing from the evaluation of the Climate Public Private Partnership (CP3) program. The paper proposes both a qualitative multi-criteria assessment (MCA) framework and a quantitative composite index to determine if investments represent a deviation from business-as-usual scenarios.

This synthesis paper by the Climate Policy Initiative proposes a systems thinking approach to optimize international public climate finance. It identifies systemic barriers in developing countries—such as short-termism in banking and capital volatility—and argues that international public actors must shift from a project-finance focus to a financial system development focus to effectively leverage private capital and meet Nationally Determined Contributions (NDCs).

This briefing by the Climate Policy Initiative and Agroicone outlines the practical implications of a Supreme Court decision regarding the implementation of the Brazilian Forest Code. It details the legal regimes for landowners based on deforestation dates, the role of the Environmental Regularization Program (PRA), and specific rules for Legal Forest Reserve recovery and compensation.

This briefing by the Climate Policy Initiative (CPI) and Agroicone discusses the legal status and implementation steps of the Brazilian Forest Code (Federal Law No. 12,651/2012) following a February 2018 Supreme Federal Court (STF) ruling. The document outlines the requirements for rural producers to achieve environmental regularization, the benefits available to those who deforested before July 22, 2008, and the critical deadlines for registration in the Rural Environmental Registry (CAR).

This article analyzes a decision by the Brazilian Supreme Federal Court (STF) regarding the 2012 Forest Code (Law No. 12,651/2012), specifically focusing on how contradictory rulings regarding the Environmental Reserve Quote (CRA) create legal uncertainty and potentially weaken this market-based mechanism for environmental regularization.

This report by the Climate Policy Initiative analyzes the Indonesian Village Fund, a fiscal instrument established in 2015 to promote rural economic development and reduce welfare gaps. While the fund has grown significantly in size and provides over 50% of village revenue, the study finds that spending is overwhelmingly directed toward transportation infrastructure rather than sustainable land use or environmental protection. The report identifies critical gaps in technical capacity, regulatory guidance, and coordination between village and district planning, offering five strategic recommendations to align the fund with sustainability goals.

This research paper by the Climate Policy Initiative proposes a systems thinking framework to accelerate climate finance by analyzing the interactions between international public finance actors and domestic financial systems in developing countries. It identifies systemic trends, catalogues the roles of various financial actors, and provides a methodology for mapping system dynamics to optimize coordination and collaboration.

This research paper analyzes the USD 18-36 trillion climate investment gap in developing countries and identifies key barriers to scaling finance, such as access to capital and investor skill gaps. It evaluates the roles of various public finance actors—including MDBs, bilateral DFIs, and National Development Banks—highlighting that while NDBs provide the largest flows, they often lack risk mitigation tools. The authors recommend that public actors adopt more flexible capital strategies, harmonize standards, and shift from project-specific finance to broader financial system development to better leverage private investment.

This research paper proposes a 'solar municipal bond model' (SMB) to help India reach its 40 GW rooftop solar target by 2022. The model suggests using municipal entities as finance aggregators to provide project developers with access to debt capital markets, potentially reducing rooftop solar costs by up to 12%.

This policy brief by the Climate Policy Initiative (CPI) analyzes the distribution channels for rural credit in Brazil. It argues that the current design of financial services, characterized by a complex and geographically uneven network of banks and cooperatives, creates additional uncertainty for farmers. The brief highlights a mismatch between the supply of credit and the actual agricultural potential of different regions, suggesting that simplifying the structure of rural credit could improve policy effectiveness and resource allocation.

This policy brief by the Climate Policy Initiative (CPI) and the Núcleo de Avaliação de Políticas Climáticas da PUC-Rio (NAPC), in partnership with the Banco Central do Brasil (Bacen), analyzes the distribution channels of rural credit in Brazil. The document argues that the current design of rural credit policy and its distribution through banks and cooperatives create artificial fluctuations and uncertainties for producers, as access to financing is often determined by the geographic presence of financial institutions rather than local agricultural potential.

This technical briefing by the Climate Policy Initiative analyzes the Brazilian Supreme Court's (STF) rulings on the constitutionality of Law 12.651/2012 (the new Forest Code). The authors argue that by judging legal provisions separately rather than addressing the core issue of the July 22, 2008, time limit, the court has created contradictory rulings that threaten legal certainty and the effective implementation of environmental regulations.

This research paper analyzes the economic impact of agricultural expansion in the Matopiba region of Brazil (Maranhão, Tocantins, Piauí, and Bahia) within the Cerrado biome. Finding that agricultural production accelerated after the late 1990s—driven by a shift toward soy—the study concludes that this expansion increased total GDP per capita by 11% relative to non-Cerrado areas, primarily through direct agricultural growth and indirect spillovers into the services sector. While access to electricity and durable goods (TVs, refrigerators) improved, the expansion had no significant effect on manufacturing GDP, migration, or educational attainment.

The Battery Subscription Facility is a financial instrument designed to accelerate the adoption of electric buses in India by reducing high upfront costs through a battery-as-a-service model. By owning the batteries and leasing them to operators, the Facility aims to lower initial costs by 40-50% and reduce the total cost of ownership compared to diesel or CNG alternatives.

The Socio-Climate Benefits Fund (SCBF), proposed by Kaeté Investimentos, is a financial instrument designed to reverse small-scale deforestation in the Brazilian Amazon by incentivizing the adoption of agroforestry systems among smallholders through long-term investment and training.

The Responsible Commodities Facility (RCF) is a financial instrument designed to reduce deforestation in the Brazilian Cerrado by providing low-cost loans to soy and corn producers who utilize previously cleared and degraded lands rather than expanding into native vegetation.