Two important new reports to help in the low-carbon energy transition

There are two important reports related to sustainable energy from the OECD and the Nordic Council of Ministers together with the Global Subsidies Initiative of the International Institute for Sustainable Development (IISD).

 

• Mapping Channels to Mobilise Institutional Investment in Sustainable Energy

The OECD has recently published an important report related to investment in sustainable energy entitled, Mapping Channels to Mobilise Institutional Investment in Sustainable Energy.

The report addresses several issues. 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 interventions that can make institutional investment in sustainable energy infrastructure more likely.

Information on obtaining the report is available on the OECD website.

 

• Fossil-Fuel Subsidies and Climate Change: Options for policy-makers within their Intended Nationally Determined Contributions

Every year governments spend $543 billion subsidising fossil-fuels to consumers. A new report on Fossil-Fuel Subsidies and Climate Change from the GSI published by the Nordic Council of Ministers finds that removing these subsidies could lead to global GHG emissions reductions of between 6-13% by 2050.

With potential domestic savings to some governments of between 5-30% of expenditures, and in the context of the low oil price many governments are removing subsidies. This report shows how to include national emissions reduction estimates within country contributions towards the UNFCCC using the Global Subsidies Initiative – Integrated Fiscal (GSI-IF) model.

The report is available on the Nordic Council website.

 

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