Comparative roles of public financial institutions in support of low-GHG climate-resilient policy objectives

Project Details

Description

This multi-year research project will investigate the use of different publicly-supported financial instruments to the financing of a low-carbon and resilient economy. Over the last decade, the approach used by public financial institutions (including promotional, green and development banks) is shifting to focus on the mobilization of additional finance. Furthermore, an impact-orientated focus has emerged, with some of these institutions in their strategic documents prioritizing 'transformational' or 'systemic' impacts.

Financial instruments and forms of interventions - ranging from equity stakes, blended finance to intermediates financial products are increasingly being used alongside direct lending and subsidies to support the low-GHG climate-resilient transition. Moreover, the use of these instruments does not necessarily fit in their mandates and processes designed to support direct investment and intervention. Today, the use of these instruments has not been systematically analysed in terms of environmental outcomes and impacts, as well as financial soundness and value for the use of public funds. There is little academic literature to date focusing on this topic and little to no comparative assessment.

To fill this gap in the literature, the research project also has the objective to better identify, through an exploration of the current uses how the use of different instruments can be relevant and deliver real impact on the ground. It will propose a novel framework for assessing both the financial and objective-focused outcomes of these tools. By filling existing knowledge gaps, it aims to help found an academic discussion of the impacts arising from the use of these instruments as well as identify their use complements economic and innovative policy.

Knowledge exchange is an integral component of the project as there is currently extensive policy- and strategy-focused discussions on how the mandates and operational frameworks of public financial institutions should evolve to be the most efficient and effective to support the low-GHG climate-resilient objectives.
StatusActive
Effective start/end date1/08/22 → …

Fingerprint

Explore the research topics touched on by this project. These labels are generated based on the underlying awards/grants. Together they form a unique fingerprint.