What are the channels for investment in sustainable energy infrastructure by institutional
investors (e.g. pension funds, insurance companies and sovereign wealth funds) and
what factors influence investment decisions? What key policy levers and risk mitigants
can governments use to facilitate these types of investments? What emerging channels
(such as green bonds, YieldCos and direct project investment) hold significant promise
for scaling up institutional investment?
This report develops a framework that classifies investments according to different
types of financing instruments and investment funds, and highlights the risk mitigants
and transaction enablers that intermediaries (such as public green investment banks
and other public financial institutions) can use to mobilise institutionally held
capital. This framework can also be used to identify where investments are or are
not flowing, and focus attention on how governments can support the development of
potentially promising investment channels and consider policy interventionsthat can
make institutional investment in sustainable energy infrastructure more likely.

Published on February 09, 2015

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