The potential of public finance instruments for covering risks and facilitating low-carbon investments in developing countries.
Leveraging private finance is essential as public finance
alone will not be sufficient for embarking on low- emission development paths that limit global warming to 2C. This paper mainly relies on a literature review, discussing existing finance-facilitating tools and the types of risks they can alleviate. Then it discusses the other challenges, based on seven semi-structured interviews the authors have conducted with experts from
development banks, bilateral agencies and the private sector.