Green Infrastructure Finance : Framework Report
The report estimated that in the East Asia and Pacific (EAP) region alone about US$80 billion a year of additional investments would be required in low-emission projects (green investments), resulting in a significant financing challenge. The report argues that the solution lies in understanding the...
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| Format: | Publication |
| Language: | English |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/04/16253049/green-infrastructure-finance-framework-report http://hdl.handle.net/10986/9367 |
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okr-10986-9367 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
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ABATEMENT COSTS AIR ALLOCATION ALTERNATIVE INVESTMENT ALTERNATIVE INVESTMENTS BALANCE SHEET BIOMASS BRIDGE BUS BUSINESS OPPORTUNITIES CAPITAL COST CAPITAL COSTS CAPITAL FLOWS CAPITAL INTENSIVE PROJECTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CARBON ABATEMENT CARBON CAPTURE CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON ECONOMY CARBON EMISSION CARBON EMISSIONS CARBON FINANCE CARBON MARKET CARBON MARKETS CARBON PRICE CARBON TAXES CARBON TECHNOLOGIES CASH FLOW CASH FLOWS CLEAN ENERGY CLEAN TECHNOLOGIES CLEAN TECHNOLOGY CLIMATE CLIMATE CHANGE CO CO2 COAL COAL PLANT COLORS COMMERCIAL LOAN COMMERCIAL LOANS COST OF CARBON COST-BENEFIT DAMAGES DEBT DEBT PAYMENTS DEBT SERVICE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANKS DIFFUSION DISCOUNT RATE DOMESTIC CARBON DONOR COMMUNITY DONOR SUPPORT ECONOMIC BENEFITS ECONOMIC COSTS ECONOMIC OPPORTUNITIES ECONOMIC PERSPECTIVE ECONOMIC POLICY ECONOMICS OF CLIMATE CHANGE EFFICIENT TRANSPORT INFRASTRUCTURE EMISSION EMISSION ABATEMENT EMISSION REDUCTION EMISSION TECHNOLOGIES EMISSIONS EMISSIONS ABATEMENT EMISSIONS REDUCTION EMISSIONS REDUCTIONS ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY EFFICIENCY MEASURES ENERGY EFFICIENT LIGHT BULBS ENERGY EFFICIENT TRANSPORT ENERGY PORTFOLIO ENERGY SAVINGS ENVIRONMENTAL ECONOMICS EQUITY INVESTOR EQUITY INVESTORS EQUITY RATIO EXTERNALITIES FINANCE INITIATIVE FINANCIAL CONTRIBUTION FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL RESOURCE FINANCIAL STRUCTURE FINANCIAL STRUCTURES FINANCIAL SUPPORT FINANCIAL VIABILITY FINANCING NEEDS FISCAL SUPPORT FLOW OF FUNDS FOSSIL FUEL FOSSIL FUELS FUEL COST FUEL SUBSIDIES GHG GHGS GLOBAL ENVIRONMENT FACILITY GLOBAL RECESSION GLOBAL WARMING GREENHOUSE GREENHOUSE GAS GROSS DOMESTIC PRODUCT HIGH ENERGY HOMEOWNER HOUSEHOLDS HYBRID FINANCING IMPORT DUTIES IMPORTS INCOME INFRASTRUCTURE FINANCE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROJECTS INNOVATIVE FINANCIAL INSTRUMENTS INNOVATIVE FINANCING INSTITUTIONAL INVESTORS INTEREST PAYMENT INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL INSTITUTION INVESTING INVESTMENT CLIMATE INVESTMENT CORPORATION INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS KEY BENEFIT LENDER LENDERS LOAN LOAN TERMS LOCAL AIR POLLUTION LONG-TERM FINANCING LOW-CARBON LOWER COSTS MARGINAL ABATEMENT MARGINAL ABATEMENT COST MARKET FAILURE MARKET INTEREST RATES MASS TRANSIT MUNICIPAL ENGINEER NEGATIVE IMPACT NOX O&M OPERATING COSTS PARTICULATE PERSONAL TRANSPORTATION POLICY ANALYSIS POLICY MAKERS POLLUTION PORTFOLIO POWER GENERATION POWER PLANTS POWER SECTOR PRESENT VALUE PRICE DISTORTIONS PRICE OF COAL PRICE TAG PRIVATE FINANCIAL MARKETS PRIVATE FINANCING PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTORS PROPERTY RIGHTS PUBLIC EDUCATION PUBLIC FINANCE PUBLIC FUNDS PUBLIC POLICY PUBLIC-PRIVATE PARTNERSHIPS RAIL RAIL PROJECTS RAPID TRANSIT RAPID TRANSIT SYSTEMS RATES OF RETURN REAL ESTATE RENEWABLE ENERGY RESERVE ACCOUNTS RESOURCE COST RETAIL ELECTRICITY RETURN ON INVESTMENT RISK PERCEPTIONS SANITATION SOURCES OF FUNDS SOX SPILLOVER EFFECTS STREET LIGHTING SUBSIDY COSTS SUPPLY SIDE TAX TAX INCENTIVES TECHNICAL ASSISTANCE TOTAL AMOUNT OF ABATEMENT TRADABLE PERMITS TRADING TRAFFIC TRANSACTION COSTS TRANSIT SYSTEM TRANSIT SYSTEMS TRANSPORT TRANSPORTATION INFRASTRUCTURE TRUE TRUST FUND UNCERTAINTIES UNEP URBAN TRANSPORT WIND WIND ENERGY WIND FARMS |
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ABATEMENT COSTS AIR ALLOCATION ALTERNATIVE INVESTMENT ALTERNATIVE INVESTMENTS BALANCE SHEET BIOMASS BRIDGE BUS BUSINESS OPPORTUNITIES CAPITAL COST CAPITAL COSTS CAPITAL FLOWS CAPITAL INTENSIVE PROJECTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CARBON ABATEMENT CARBON CAPTURE CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON ECONOMY CARBON EMISSION CARBON EMISSIONS CARBON FINANCE CARBON MARKET CARBON MARKETS CARBON PRICE CARBON TAXES CARBON TECHNOLOGIES CASH FLOW CASH FLOWS CLEAN ENERGY CLEAN TECHNOLOGIES CLEAN TECHNOLOGY CLIMATE CLIMATE CHANGE CO CO2 COAL COAL PLANT COLORS COMMERCIAL LOAN COMMERCIAL LOANS COST OF CARBON COST-BENEFIT DAMAGES DEBT DEBT PAYMENTS DEBT SERVICE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANKS DIFFUSION DISCOUNT RATE DOMESTIC CARBON DONOR COMMUNITY DONOR SUPPORT ECONOMIC BENEFITS ECONOMIC COSTS ECONOMIC OPPORTUNITIES ECONOMIC PERSPECTIVE ECONOMIC POLICY ECONOMICS OF CLIMATE CHANGE EFFICIENT TRANSPORT INFRASTRUCTURE EMISSION EMISSION ABATEMENT EMISSION REDUCTION EMISSION TECHNOLOGIES EMISSIONS EMISSIONS ABATEMENT EMISSIONS REDUCTION EMISSIONS REDUCTIONS ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY EFFICIENCY MEASURES ENERGY EFFICIENT LIGHT BULBS ENERGY EFFICIENT TRANSPORT ENERGY PORTFOLIO ENERGY SAVINGS ENVIRONMENTAL ECONOMICS EQUITY INVESTOR EQUITY INVESTORS EQUITY RATIO EXTERNALITIES FINANCE INITIATIVE FINANCIAL CONTRIBUTION FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL RESOURCE FINANCIAL STRUCTURE FINANCIAL STRUCTURES FINANCIAL SUPPORT FINANCIAL VIABILITY FINANCING NEEDS FISCAL SUPPORT FLOW OF FUNDS FOSSIL FUEL FOSSIL FUELS FUEL COST FUEL SUBSIDIES GHG GHGS GLOBAL ENVIRONMENT FACILITY GLOBAL RECESSION GLOBAL WARMING GREENHOUSE GREENHOUSE GAS GROSS DOMESTIC PRODUCT HIGH ENERGY HOMEOWNER HOUSEHOLDS HYBRID FINANCING IMPORT DUTIES IMPORTS INCOME INFRASTRUCTURE FINANCE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROJECTS INNOVATIVE FINANCIAL INSTRUMENTS INNOVATIVE FINANCING INSTITUTIONAL INVESTORS INTEREST PAYMENT INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL INSTITUTION INVESTING INVESTMENT CLIMATE INVESTMENT CORPORATION INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS KEY BENEFIT LENDER LENDERS LOAN LOAN TERMS LOCAL AIR POLLUTION LONG-TERM FINANCING LOW-CARBON LOWER COSTS MARGINAL ABATEMENT MARGINAL ABATEMENT COST MARKET FAILURE MARKET INTEREST RATES MASS TRANSIT MUNICIPAL ENGINEER NEGATIVE IMPACT NOX O&M OPERATING COSTS PARTICULATE PERSONAL TRANSPORTATION POLICY ANALYSIS POLICY MAKERS POLLUTION PORTFOLIO POWER GENERATION POWER PLANTS POWER SECTOR PRESENT VALUE PRICE DISTORTIONS PRICE OF COAL PRICE TAG PRIVATE FINANCIAL MARKETS PRIVATE FINANCING PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTORS PROPERTY RIGHTS PUBLIC EDUCATION PUBLIC FINANCE PUBLIC FUNDS PUBLIC POLICY PUBLIC-PRIVATE PARTNERSHIPS RAIL RAIL PROJECTS RAPID TRANSIT RAPID TRANSIT SYSTEMS RATES OF RETURN REAL ESTATE RENEWABLE ENERGY RESERVE ACCOUNTS RESOURCE COST RETAIL ELECTRICITY RETURN ON INVESTMENT RISK PERCEPTIONS SANITATION SOURCES OF FUNDS SOX SPILLOVER EFFECTS STREET LIGHTING SUBSIDY COSTS SUPPLY SIDE TAX TAX INCENTIVES TECHNICAL ASSISTANCE TOTAL AMOUNT OF ABATEMENT TRADABLE PERMITS TRADING TRAFFIC TRANSACTION COSTS TRANSIT SYSTEM TRANSIT SYSTEMS TRANSPORT TRANSPORTATION INFRASTRUCTURE TRUE TRUST FUND UNCERTAINTIES UNEP URBAN TRANSPORT WIND WIND ENERGY WIND FARMS World Bank Green Infrastructure Finance : Framework Report |
| relation |
World Bank Studies |
| description |
The report estimated that in the East Asia and Pacific (EAP) region alone about US$80 billion a year of additional investments would be required in low-emission projects (green investments), resulting in a significant financing challenge. The report argues that the solution lies in understanding the causes of the financial viability gap, and then investigating how specific actions, including strategic subsidies, concessional financing, and public policy interventions and reforms, can bridge this gap to make green investment transactions viable. The green infrastructure finance framework also underscores the benefits of valuing and monetizing carbon externalities. Moreover, it recognizes the effects of policy distortions and other negative factors that impinge on financial viability, emphasizing the need for an approach to analyze and explain the gap and to attribute its components to different stakeholders. This report shows that it is essential to measure global and local externality benefits against the causes of the viability gap such as perceptions of added risks, cost differentials, policy distortions, and other factors. Once these elements are fully considered, policy makers can identify practical ways to better structure the financing of green investment projects that can be supported by the market. Three key principals have guided the development of the framework: (i) targeting green finance resources on sectors that have large numbers of projects with low abatement costs; (ii) setting ceilings on the value of support that will be provided for a tone of greenhouse gas (GHG) abatement in any sector or project; and (iii) using competitive mechanisms to ensure that projects do not receive more support than needed to make them financially attractive. This report is the second of a continuing series of green infrastructure finance publications. The first part undertook a stocktaking of leading initiatives and literature related to the green infrastructure finance theme. This second part is a conceptual piece that bridges ideas and concepts between environmental economics and project finance practices. Work will continue over the next months by operationalizing this framework (analytical methodology and assessment of green infrastructure investment climate) through a pilot in a selected EAP developing country. Given a better understanding of the financing challenges of different green projects, work will also continue in developing more customized and innovative financing instruments that can be specifically tailored to address the requirements of these projects. |
| format |
Publications & Research :: Publication |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Green Infrastructure Finance : Framework Report |
| title_short |
Green Infrastructure Finance : Framework Report |
| title_full |
Green Infrastructure Finance : Framework Report |
| title_fullStr |
Green Infrastructure Finance : Framework Report |
| title_full_unstemmed |
Green Infrastructure Finance : Framework Report |
| title_sort |
green infrastructure finance : framework report |
| publisher |
Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/04/16253049/green-infrastructure-finance-framework-report http://hdl.handle.net/10986/9367 |
| _version_ |
1764409062206734336 |
| spelling |
okr-10986-93672021-04-23T14:02:44Z Green Infrastructure Finance : Framework Report World Bank ABATEMENT COSTS AIR ALLOCATION ALTERNATIVE INVESTMENT ALTERNATIVE INVESTMENTS BALANCE SHEET BIOMASS BRIDGE BUS BUSINESS OPPORTUNITIES CAPITAL COST CAPITAL COSTS CAPITAL FLOWS CAPITAL INTENSIVE PROJECTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CARBON ABATEMENT CARBON CAPTURE CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON ECONOMY CARBON EMISSION CARBON EMISSIONS CARBON FINANCE CARBON MARKET CARBON MARKETS CARBON PRICE CARBON TAXES CARBON TECHNOLOGIES CASH FLOW CASH FLOWS CLEAN ENERGY CLEAN TECHNOLOGIES CLEAN TECHNOLOGY CLIMATE CLIMATE CHANGE CO CO2 COAL COAL PLANT COLORS COMMERCIAL LOAN COMMERCIAL LOANS COST OF CARBON COST-BENEFIT DAMAGES DEBT DEBT PAYMENTS DEBT SERVICE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANKS DIFFUSION DISCOUNT RATE DOMESTIC CARBON DONOR COMMUNITY DONOR SUPPORT ECONOMIC BENEFITS ECONOMIC COSTS ECONOMIC OPPORTUNITIES ECONOMIC PERSPECTIVE ECONOMIC POLICY ECONOMICS OF CLIMATE CHANGE EFFICIENT TRANSPORT INFRASTRUCTURE EMISSION EMISSION ABATEMENT EMISSION REDUCTION EMISSION TECHNOLOGIES EMISSIONS EMISSIONS ABATEMENT EMISSIONS REDUCTION EMISSIONS REDUCTIONS ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY EFFICIENCY MEASURES ENERGY EFFICIENT LIGHT BULBS ENERGY EFFICIENT TRANSPORT ENERGY PORTFOLIO ENERGY SAVINGS ENVIRONMENTAL ECONOMICS EQUITY INVESTOR EQUITY INVESTORS EQUITY RATIO EXTERNALITIES FINANCE INITIATIVE FINANCIAL CONTRIBUTION FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL RESOURCE FINANCIAL STRUCTURE FINANCIAL STRUCTURES FINANCIAL SUPPORT FINANCIAL VIABILITY FINANCING NEEDS FISCAL SUPPORT FLOW OF FUNDS FOSSIL FUEL FOSSIL FUELS FUEL COST FUEL SUBSIDIES GHG GHGS GLOBAL ENVIRONMENT FACILITY GLOBAL RECESSION GLOBAL WARMING GREENHOUSE GREENHOUSE GAS GROSS DOMESTIC PRODUCT HIGH ENERGY HOMEOWNER HOUSEHOLDS HYBRID FINANCING IMPORT DUTIES IMPORTS INCOME INFRASTRUCTURE FINANCE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROJECTS INNOVATIVE FINANCIAL INSTRUMENTS INNOVATIVE FINANCING INSTITUTIONAL INVESTORS INTEREST PAYMENT INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL INSTITUTION INVESTING INVESTMENT CLIMATE INVESTMENT CORPORATION INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS KEY BENEFIT LENDER LENDERS LOAN LOAN TERMS LOCAL AIR POLLUTION LONG-TERM FINANCING LOW-CARBON LOWER COSTS MARGINAL ABATEMENT MARGINAL ABATEMENT COST MARKET FAILURE MARKET INTEREST RATES MASS TRANSIT MUNICIPAL ENGINEER NEGATIVE IMPACT NOX O&M OPERATING COSTS PARTICULATE PERSONAL TRANSPORTATION POLICY ANALYSIS POLICY MAKERS POLLUTION PORTFOLIO POWER GENERATION POWER PLANTS POWER SECTOR PRESENT VALUE PRICE DISTORTIONS PRICE OF COAL PRICE TAG PRIVATE FINANCIAL MARKETS PRIVATE FINANCING PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTORS PROPERTY RIGHTS PUBLIC EDUCATION PUBLIC FINANCE PUBLIC FUNDS PUBLIC POLICY PUBLIC-PRIVATE PARTNERSHIPS RAIL RAIL PROJECTS RAPID TRANSIT RAPID TRANSIT SYSTEMS RATES OF RETURN REAL ESTATE RENEWABLE ENERGY RESERVE ACCOUNTS RESOURCE COST RETAIL ELECTRICITY RETURN ON INVESTMENT RISK PERCEPTIONS SANITATION SOURCES OF FUNDS SOX SPILLOVER EFFECTS STREET LIGHTING SUBSIDY COSTS SUPPLY SIDE TAX TAX INCENTIVES TECHNICAL ASSISTANCE TOTAL AMOUNT OF ABATEMENT TRADABLE PERMITS TRADING TRAFFIC TRANSACTION COSTS TRANSIT SYSTEM TRANSIT SYSTEMS TRANSPORT TRANSPORTATION INFRASTRUCTURE TRUE TRUST FUND UNCERTAINTIES UNEP URBAN TRANSPORT WIND WIND ENERGY WIND FARMS The report estimated that in the East Asia and Pacific (EAP) region alone about US$80 billion a year of additional investments would be required in low-emission projects (green investments), resulting in a significant financing challenge. The report argues that the solution lies in understanding the causes of the financial viability gap, and then investigating how specific actions, including strategic subsidies, concessional financing, and public policy interventions and reforms, can bridge this gap to make green investment transactions viable. The green infrastructure finance framework also underscores the benefits of valuing and monetizing carbon externalities. Moreover, it recognizes the effects of policy distortions and other negative factors that impinge on financial viability, emphasizing the need for an approach to analyze and explain the gap and to attribute its components to different stakeholders. This report shows that it is essential to measure global and local externality benefits against the causes of the viability gap such as perceptions of added risks, cost differentials, policy distortions, and other factors. Once these elements are fully considered, policy makers can identify practical ways to better structure the financing of green investment projects that can be supported by the market. Three key principals have guided the development of the framework: (i) targeting green finance resources on sectors that have large numbers of projects with low abatement costs; (ii) setting ceilings on the value of support that will be provided for a tone of greenhouse gas (GHG) abatement in any sector or project; and (iii) using competitive mechanisms to ensure that projects do not receive more support than needed to make them financially attractive. This report is the second of a continuing series of green infrastructure finance publications. The first part undertook a stocktaking of leading initiatives and literature related to the green infrastructure finance theme. This second part is a conceptual piece that bridges ideas and concepts between environmental economics and project finance practices. Work will continue over the next months by operationalizing this framework (analytical methodology and assessment of green infrastructure investment climate) through a pilot in a selected EAP developing country. Given a better understanding of the financing challenges of different green projects, work will also continue in developing more customized and innovative financing instruments that can be specifically tailored to address the requirements of these projects. 2012-07-02T14:36:11Z 2012-07-02T14:36:11Z 2012 http://documents.worldbank.org/curated/en/2012/04/16253049/green-infrastructure-finance-framework-report 978-0-8213-9527-1 http://hdl.handle.net/10986/9367 English World Bank Studies CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Publications & Research :: Publication Publications & Research :: Publication |