Smart Climate Finance - Designing Public Finance Strategies to Boost Private Investment in Developing Countries

In order to achieve a 50 percent reduction in carbon dioxide emissions by 2050, total financing to 2050 of around EUR 30 trillion will be required. The United Nations Framework Convention on Climate Change has concluded that a significant majority of this investment will need to come from the private sector. Public Finance Instruments for low-carbon development are publicly backed interventions that help to close financing gaps, overcome market barriers, and accelerate market uptake of low-carbon measures. This report has been prepared by Frankfurt School of Finance and Management in partnership with the Basel Agency for Sustainable Energy, drawing on the best up-to-date research and experience in the field.