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The report finds that federal incentives were critical for the viability of U.S. wind and solar projects in 2010, bridging roughly half the gap between generation costs and market prices. While cost reductions have made wind nearly viable with federal support alone by 2013, the report argues that current tax-based incentives are inefficient because project developers often lack the tax liabilities to fully utilize them, necessitating costly tax-equity financing. The authors propose replacing the Production Tax Credit (PTC) for wind with a Taxable Cash for Production (TCP) incentive and offering solar PV projects a 20% 1603 Cash Grant instead of a 30% Investment Tax Credit (ITC) to maintain support while significantly reducing costs to federal and state governments.

The Ouarzazate I CSP project in Morocco utilizes a public-private partnership (PPP) model and significant concessional financing from international financial institutions (IFIs) to overcome the commercial unviability of CSP technology. The project is designed as the first phase of a larger portfolio to drive down costs and eventually enable renewable energy exports to the European Union. Key success factors include the creation of the Moroccan Agency for Solar Energy (MASEN), strong donor coordination, and a risk-sharing framework that allocates operational risks to private developers and revenue risks to the public sector.

The report examines M&E frameworks across eight intermediaries—including the World Bank, ADB, and GEF—finding that while results-based management is common, rigorous and consistent methods to evaluate transformative climate impacts are still lacking. It highlights the need for core indicators, real-time evaluations, and a shift from project-level to portfolio-based assessments to improve transparency and learning.

The research paper evaluates four types of cost limits—alternative compliance payments, contract price caps, retail rate/revenue impact caps, and renewable energy fund caps—across several U.S. states. It finds that while cost limits can insure against unacceptably high costs, they often create market uncertainty, may act as price floors rather than ceilings, and can conflict with renewable energy targets if not aligned with expected costs. For California, the author recommends avoiding public contract-level benchmarks, ensuring the limit is consistent with expected RPS costs, and implementing a simple, clearly defined mechanism with a predictable review process.

The Prosol program (2005-2010) successfully scaled the deployment of solar water heaters in Tunisia by combining capital subsidies, concessional credit, and a unique risk-mitigation framework. By leveraging the state utility STEG as a debt collector and guarantor, the program reduced credit risk for commercial banks, leading to a 1:5 public-to-private investment ratio. The initiative not only increased installed capacity fivefold but also generated significant fiscal returns for the Tunisian government by reducing expenditures on liquefied petroleum gas (LPG) subsidies.

The report assesses MRV systems in four major emitting countries, finding that while emissions tracking is generally sophisticated and transparent due to international frameworks like the UNFCCC, tracking the specific impacts of mitigation actions remains inconsistent and less reliable. It highlights a gap in the ability of policymakers to identify the most cost-effective policies, as MRV systems often track policy outputs rather than actual emissions outcomes. The analysis provides country-specific evaluations and identifies good practices, such as the U.S. facility-level data portal and China's annual progress reports.

The Walney Offshore Windfarms project, the world's largest installed offshore windfarm at the start of 2012, overcame significant investment barriers through a dual approach. First, the UK government provided a robust policy framework centered on green tradable certificates (ROCs), which provided approximately 60% of expected project revenues. Second, the developer, DONG Energy, employed extensive financial engineering to 'de-risk' the investment for non-utility investors, such as the Dutch pension fund PGGM and Ampère Equity Fund. By using Power Purchase Agreements (PPAs), construction management agreements, and vendor financing, DONG Energy reallocated construction, operation, and price risks away from these institutional investors, effectively transforming their equity stakes into quasi-fixed income positions. The project attracted GBP 1.3 billion in private investment and is projected to avoid 8.3 MtCO2 and 193,000 tons of SO2 over its lifetime.

The document identifies that federal energy-related spending in 2010 ranged from $290 billion to $610 billion, with the vast majority supporting petroleum-based transportation and energy security rather than emissions reduction. Only $38 billion was spent on climate mitigation, a small fraction of the total budget, and much of this was temporary stimulus funding from the Recovery Act. The analysis highlights a reliance on tax expenditures for clean energy, which are described as less transparent than direct spending but more politically sustainable.

The report examines the MRV frameworks of four major emitters, finding that while emissions tracking is well-established and consistent with international standards, the tracking of mitigation actions is fragmented, often relying on ex-ante projections rather than ex-post measurements of actual reductions.

During the 11th Five-Year Plan (2006-2010), China achieved a 19.06 percent reduction in energy intensity against a 2005 baseline, driven primarily by technological development and structural adjustments. Despite these efficiency gains, total emissions increased by 33.6 percent, making China the world's largest emitter in 2007. The government deployed significant investment, totaling 1.73 trillion yuan in new and renewable energy and 859.2 billion yuan in energy efficiency, though these efforts primarily benefited large state-owned enterprises over small and medium enterprises. Looking toward the 12th Five-Year Plan, the document identifies challenges in meeting ambitious energy and carbon intensity targets due to rapid urbanization, rising marginal costs of conservation, and the continued prioritization of GDP growth by local governments.

During the 11th Five-Year Plan, China reduced its energy intensity by 19.06% compared to a 2005 baseline, primarily through the adoption of cleaner technologies and economic structural changes. While administrative and incentive instruments significantly reduced CO2 emissions, total emissions grew by 33.6%, making China the world's largest greenhouse gas emitter. The report highlights that while large enterprises and local governments implemented energy-saving measures, small- and medium-sized enterprises lagged behind, and regional competition often prioritized GDP growth over carbon reduction. Looking toward the 12th FYP, the document warns that rising marginal costs and rapid urbanization will make achieving new energy and carbon intensity targets more challenging.

The document outlines the financial and regulatory challenges of expanding the European electricity grid to accommodate renewable energy. It assesses five financing options for transmission system operators (TSOs) and third parties, evaluates the EU Infrastructure Package's role in aligning national and regional planning, and discusses mechanisms for international cost-allocation and EU financial support.

The report evaluates the design of proposed tax incentives for residential thermal retrofits in Germany, focusing on whether to support single or comprehensive measures, the appropriateness of the KfW 85 standard, the optimal timeframe for project completion, and the risks associated with stepwise implementation. Based on a survey of 78 practitioners, the document argues that comprehensive retrofits are superior for energy savings and comfort, and that a 10-year flexibility period for completion is unnecessary. It also highlights the critical importance of a specific sequence of measures to avoid structural damage and cost increases.

The study analyzes the drivers of reduced deforestation in the Brazilian Amazon from 2000 to 2010, specifically comparing the impact of agricultural prices against conservation policies introduced in 2004 and 2008. Using regression techniques and counterfactual simulation, the research finds that conservation policies were responsible for preventing the deforestation of approximately 62,000 square kilometers between 2005 and 2009. This is equivalent to preserving 620 million tons of stored carbon, valued at an estimated 11.5 billion USD. While crop prices generally correlate positively with deforestation, cattle prices show a more complex, heterogeneous effect. The document concludes that while market conditions played a role, the strategic policy interventions—including improved monitoring via DETER, the expansion of protected areas, and stricter rural credit requirements—were the decisive factors in slowing forest loss.

The analysis concludes that conservation policies implemented in 2004 and 2008 were effective in curbing deforestation in the Brazilian Legal Amazon, accounting for approximately half of the avoided deforestation between 2005 and 2009. While agricultural crop prices showed a positive causal effect on deforestation, the impact of livestock prices was heterogeneous. The policies prevented the loss of 62,000 km² of forest, equivalent to 620 million tons of carbon storage, with an estimated value of 11.5 billion USD (though one section mentions 3.1 billion USD). Key policy interventions included the PPCDAm, real-time satellite monitoring (DETER), the creation of protected areas, and conditional credit requirements for agricultural activities.

The document examines how different financial instruments and institutions define and calculate 'leverage'—the ability of public funds to catalyze additional investment. It finds that leverage is often conflated with co-financing and varies wildly by instrument, making cross-comparison nearly impossible. The authors propose a new framework based on counterfactuals, risk mitigation, and the avoidance of double counting to improve the rigor of climate finance reporting.

The report analyzes the impact of four major German energy policies—the Environmental Tax Reform, the Combined Heat and Power Act, the EU Emission Trading Scheme, and the Renewable Energy Act—on industrial energy costs. It finds that tax exemptions and levy reductions significantly lower energy prices for large, energy-intensive companies, which may reduce incentives for energy efficiency improvements. The analysis highlights a complex pricing landscape where the policy-induced component of energy prices varies by company scale and industry sub-sector, with electricity-intensive sectors facing higher costs than those relying on fossil fuels.

The report analyzes the effects of energy tax and levy exemptions on the German industrial sector. It finds that significant reliefs—up to 96% for electricity—reduce the political component of energy prices, particularly for large, energy-intensive companies. This complexity in pricing may undermine energy efficiency incentives and lead potential investors to overestimate energy costs in Germany.

The report identifies a significant gap in the ability to measure the effectiveness of climate finance, noting that current tools are often project-based, incompatible, and lack real-time evaluation capabilities. It argues that effectiveness is enhanced when funding is aligned with national priorities, promotes transformative effects, and utilizes results-based approaches. The authors recommend the development of standardized 'climate effectiveness' metrics, robust ex ante and ex post abatement estimates, and increased transparency to avoid the risks of fragmentation and 'crowding-out' of private investment. The analysis draws on lessons from development aid (Paris-Accra principles), international financial institutions (IFIs), and market-based instruments like the Clean Development Mechanism (CDM).

The report estimates that at least USD 97 billion per annum in climate finance was provided in 2009/2010, with private finance (USD 55 billion) significantly outweighing public finance (at least USD 21 billion). The vast majority of these funds (USD 93 billion) are directed toward mitigation, while adaptation receives only USD 4.4 billion. The analysis highlights a critical lack of standardized definitions and a significant gap in data regarding the effectiveness of these financial flows.