Designing climate finance to enhance low-carbon investment through local intermediaries
Investment in low carbon technologies has been growing over the past few years. However, in order to replace conventional high energy/high carbon intensity technologies with low carbon ones and reduce GHG emissions, innovative financial schemes are needed in order to effectively utilise limited global financing resources. Such limited financial resources should be provided as incentives or back-ups to actors within low-carbon investment such as investors, lenders and enterprises, rather than provided directly to low-carbon projects, for scaling up financing and escalating the speed of low-carbon technology disseminations. This paper examines the best options among innovative national financing schemes to enhance low carbon investment by identifying and examining the barriers and benefits of low carbon investments and multi level financing mechanisms.