Abstract
Emerging economies of Asia will need to see some US$200 billion in annual capital expenditure on low-carbon energy supply and in energy efficiency to meet the Nationally Determined Contributions (NDCs) targets under the Paris agreement framework. The scale of this investment required to decouple carbon emissions from economic growth, will inevitably have to rely largely on mobilizing private capital. This chapter provides an overview of available channels to mobilize private investment in low-carbon transition. It argues that the private capital that can be mobilized to support low-carbon transition, is very much depend on the risk return profile of the investment and the regulatory environment in which these investors operate. If the governments wish to mobilize capital from the markets, they need to simultaneously understand not only the barriers to the investment but also effective channels through which such capital can flow. This chapter also presents an analytical framework that can characterize the risks to private investments and highlights the role of transaction enablers that governments can use to mobilize institutionally held capital in support of low-carbon energy transition.
| Original language | English |
|---|---|
| Title of host publication | Financing for Low-carbon Energy Transition |
| Subtitle of host publication | Unlocking the Potential of Private Capital |
| Publisher | Springer Singapore |
| Pages | 1-13 |
| Number of pages | 13 |
| ISBN (Electronic) | 9789811085826 |
| ISBN (Print) | 9789811085819 |
| DOIs | |
| Publication status | Published - 2018 Jun 23 |
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Keywords
- Banks and bond markets
- De-risking tools
- Low-carbon technology
- Private capital
- Sustainability
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Business, Management and Accounting(all)
- Environmental Science(all)
Cite this
Unlocking the potentials of private financing for accelerated low-carbon energy transition : An overview. / Anbumozhi, Venkatachalam; Kimura, Fukunari; Kalirajan, Kaliappa.
Financing for Low-carbon Energy Transition: Unlocking the Potential of Private Capital. Springer Singapore, 2018. p. 1-13.Research output: Chapter in Book/Report/Conference proceeding › Chapter
}
TY - CHAP
T1 - Unlocking the potentials of private financing for accelerated low-carbon energy transition
T2 - An overview
AU - Anbumozhi, Venkatachalam
AU - Kimura, Fukunari
AU - Kalirajan, Kaliappa
PY - 2018/6/23
Y1 - 2018/6/23
N2 - Emerging economies of Asia will need to see some US$200 billion in annual capital expenditure on low-carbon energy supply and in energy efficiency to meet the Nationally Determined Contributions (NDCs) targets under the Paris agreement framework. The scale of this investment required to decouple carbon emissions from economic growth, will inevitably have to rely largely on mobilizing private capital. This chapter provides an overview of available channels to mobilize private investment in low-carbon transition. It argues that the private capital that can be mobilized to support low-carbon transition, is very much depend on the risk return profile of the investment and the regulatory environment in which these investors operate. If the governments wish to mobilize capital from the markets, they need to simultaneously understand not only the barriers to the investment but also effective channels through which such capital can flow. This chapter also presents an analytical framework that can characterize the risks to private investments and highlights the role of transaction enablers that governments can use to mobilize institutionally held capital in support of low-carbon energy transition.
AB - Emerging economies of Asia will need to see some US$200 billion in annual capital expenditure on low-carbon energy supply and in energy efficiency to meet the Nationally Determined Contributions (NDCs) targets under the Paris agreement framework. The scale of this investment required to decouple carbon emissions from economic growth, will inevitably have to rely largely on mobilizing private capital. This chapter provides an overview of available channels to mobilize private investment in low-carbon transition. It argues that the private capital that can be mobilized to support low-carbon transition, is very much depend on the risk return profile of the investment and the regulatory environment in which these investors operate. If the governments wish to mobilize capital from the markets, they need to simultaneously understand not only the barriers to the investment but also effective channels through which such capital can flow. This chapter also presents an analytical framework that can characterize the risks to private investments and highlights the role of transaction enablers that governments can use to mobilize institutionally held capital in support of low-carbon energy transition.
KW - Banks and bond markets
KW - De-risking tools
KW - Low-carbon technology
KW - Private capital
KW - Sustainability
UR - http://www.scopus.com/inward/record.url?scp=85053363304&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85053363304&partnerID=8YFLogxK
U2 - 10.1007/978-981-10-8582-6_1
DO - 10.1007/978-981-10-8582-6_1
M3 - Chapter
AN - SCOPUS:85053363304
SN - 9789811085819
SP - 1
EP - 13
BT - Financing for Low-carbon Energy Transition
PB - Springer Singapore
ER -