The multiple roles of state investment banks in low-carbon energy finance: An analysis of Australia, the UK and Germany
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Date
2018-04
Publication Type
Journal Article
ETH Bibliography
yes
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Abstract
Low-carbon energy technologies (renewable energy and energy efficiency) are considered essential to achieve climate change mitigation goals, so a rapid deployment is needed. However there is a significant financing gap and many policymakers are concerned that investment for the large-scale deployment of low-carbon technologies will not materialise quickly enough. State investment banks (SIBs) can play a key role in closing this finance gap and leverage additional private finance. Based on 52 interviews, this paper presents empirical evidence on the role of three SIBs in addressing the barriers to financing low-carbon energy projects; the Clean Energy Finance Corporation (CEFC) in Australia, the Kreditanstalt fuer Wiederaufbau (KfW) in Germany and the Green Investment Bank (GIB) in the UK. We investigate the activities and financial instruments offered by SIBs and compare these to the need for such from low-carbon developers when sourcing finance. Findings show that aside from capital provision and de-risking, SIBs take a much broader role in catalysing private investments into low-carbon investments, including enabling financial sector learning, creating trust for projects and taking a first or early mover role to help projects gain a track record.
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Publication status
published
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Book title
Journal / series
Volume
115
Pages / Article No.
158 - 170
Publisher
Elsevier
Event
Edition / version
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Software
Geographic location
Date collected
Date created
Subject
National Development Bank; Public Investment Policy
Organisational unit
09550 - Schmidt, Tobias / Schmidt, Tobias