Abstract
Following the successful climate agreement in Paris, global attention shifted quickly to how countries will achieve their Nationally Determined Contributions. To achieve these goals, governments need to make full use of the private sector’s capacity to unlock much larger investment flows in low-carbon infrastructure. This chapter focuses on two different types of mechanism, Public–Private Partnerships (PPPs) and Green Investment Banks (GIBs). While PPPs are more practical for countries that have robust demand and are complemented by strong institutions and governance, protection of investments, and dispute resolution mechanisms, GIBs leverage public funding to mobilize much larger pools of private capital using innovative transactions, risk reduction structures, and market expertise. Although their common objective is to scale up low-carbon investment, both PPPs and GIBs have been established in a variety of national contexts to achieve a range of goals, including access to concessional capital with lower interest rates and longer tenures for green investments. This chapter examines the rationale, mandates, and financing activities of these two categories of financial architecture within the context of India and Japan. It takes stock of the actual and potential use of these two approaches and for strengthening bilateral cooperation between India and Japan.
References
Anbumozhi V, Rakhmah TF (2018) Prospects of catalysing regional solutions and the role of low carbon transition fund. In: Anbumozhi V, Kalirajan K, Kimura F (eds) Financing for low-carbon energy transition: unlocking the potential of private capital. Springer, Singapore, pp 397–422
Anbumozhi V, Yao X (2016) Serendipity of low carbon energy systems and the scope of regional cooperation. In: Anbumozhi V, Kalirajan K, Kimura F (eds) Investing in low-carbon energy systems: implications for regional economic cooperation. Springer, Singapore, pp 1–27
Anbumozhi V, Kimura F, Kalirajan K (2018) Unlocking the potentials of private financing for low-carbon transition. In: Anbumozhi V, Kalirajan K, Kimura F (eds) Financing for low-carbon energy transition: unlocking the potential of private capital. Springer, Singapore, pp 1–16
Baietti A (2013) Green infrastructure finance: a public-private partnership approach to climate finance. World Bank, Washington DC. https://openknowledge.worldbank.org/handle/10986/14857. License: CC BY 3.0 IGO
Climate Policy Initiative (2017) Global landscape of climate finance 2017, October 2017. https://climatepolicyinitiative.org/wp-content/uploads/2017/10/2017-Global-Landscape-of-Climate-Finance.pdf and http://www.climatefinancelandscape.org/
Delmon J (2009) Private Sector Investment in Infrastructure. Project Finance, PPP Projects and Risk. 2nd edition. Kluwer Law International. The Netherlands
Economist Intelligence Unit (EIU) and Asian Development Bank (ADB) (2015) Evaluating the environment for public–private partnerships in Asia-Pacific: the 2014 Infrascope. http://www.adb.org/publications/evaluating-environment-ppp-asia-pacific-2014-infrascope
Gardiner A, Bardout M, Grossi F, Dixson-Declève S (2015) Public-private partnerships for climate finance. TemaNord 2015. Nordic Council of Ministers, p 577. https://doi.org/10.6027/TN2015/577
Geddes A, Schmidt TS, Steffen B (2018) The multiple roles of state investment banks in low-carbon energy finance: an analysis of Australia, the UK and Germany, Energy Policy 115(2018):158–170. https://www.sciencedirect.com/science/article/pii/S0301421518300090
Green Bank Network (2018) Green finance organization (Japan). http://greenbanknetwork.org/green-finance-organisation-japan/. Accessed 20 Jun 18
Green Finance Organisation (2016) Green Fund Japan`s experiences, presentation at the Green Bank Congress 2016 by Takejiro Sueyoshi, CEO, Green Finance Organisation, 13 Oct 2016
Green Investment Bank (GIB) (2017) UK Green Investment Bank Limited Annual Report and Financial Statements 2016–17, UK Green Investment Bank Limited. http://greeninvestmentgroup.com/media/185901/gib-annual-report-2016-17-final.pdf
GTDT (2018a) Project finance in Japan, April 2018. https://gettingthedealthrough.com/intelligence/168/article/6057/project-finance-japan. Accessed 27 Jun 18
GTDT (2018b) Project finance in India, April 2018. https://gettingthedealthrough.com/intelligence/168/article/6055/project-finance-india. Accessed 27 Jun 18
GTDT (2018c) In India – an interview with Anjan Dasgupta, June 2018. https://gettingthedealthrough.com/intelligence/21/article/3042/project-finance-india. Accessed 27 Jun 2018
Hongo T (2016) Circular economy potential and public–private partnership models in Japan. In: Anbumozhi V, Kim J (eds) Towards a circular economy: corporate management and policy pathways. ERIA research project report 2014-44, ERIA, Jakarta, pp 17–29
Hongo T (2018) Prospects of quality infrastructure program and private sector MRC for accelerating the transition towards low-carbon energy system. In: Anbumozhi V, Kalirajan K, Kimura F (eds) Financing for low-carbon energy transition: unlocking the potential of private capital. Springer, Singapore, pp 359–396
IREDA (2017) IREDA 30th annual report for 2016–17. http://www.ireda.in/writereaddata/Ireda_Annual_Report_Final_2016-17.pdf
JBIC Press Releases (2018) JBIC press releases sectors: environment. https://www.jbic.go.jp/en/information/press/environment.html. Accessed 25 May 2018
KfW (2016) Responsible banking, financial report 2015. Frankfurt, Germany. https://www.kfw.de/PDF/Download-Center/Finanzpublikationen/PDF-Dokumente-Berichte-etc./3_Finanzberichte/KfW-Finanzbericht-2015-E.pdf
KfW (2017) Responsible banking, financial report 2016. Frankfurt, Germany. https://www.kfw.de/PDF/Download-Center/Finanzpublikationen/PDF-Dokumente-Berichte-etc./3_Finanzberichte/Finanzbericht-2016-D
Konrad-Adenauer-Stiftung eV (2017) Climate finance report 2017: private sector and climate finance in the G20 countries. http://www.kas.de/wf/doc/kas_49478-544-2-30.pdf?171025093514
Kumar S, Anisuzzaman M, Das P (2017) Estimating the low-carbon technology deployment costs and INDC targets. In: Anbumozhi V, Kalirajan K (eds) Globalization of Low-carbon technologies –the impact of the Paris agreement. Springer, Singapore, pp 335–366
Meltzer JP (2016) Financing low carbon, climate resilient infrastructure: the role of climate finance and green financial systems, Brookings Institution. https://www.brookings.edu/wp-content/uploads/2016/09/global_20160921_climate_finance.pdf
MOSPI, Government of India (2018) National accounts statistics 2018, Ministry of Statistics and Program Implementation (MOSPI) Government of India. http://www.mospi.gov.in/publication/national-accounts-statistics-2018
NRDC and CEEW (2016) Greening India’s financial market: opportunities for a green bank in India. Natural Resources Defense Council International: India (NRDC)/Council on Energy, Environment and Water (CEEW), New York/New Delhi, August 2016. https://www.nrdc.org/sites/default/files/india-financial-market-opportunities-green-bank-report.pdf
OECD (2017) Green investment banks: innovative public financial institutions scaling up private, low-carbon investment. OECD environment policy papers, No. 6, OECD Publishing, Paris. https://doi.org/10.1787/e3c2526c-en
OECD and Bloomberg Philanthropies (2015) Green investments banks: policy perspectives. https://www.oecd.org/environment/cc/Green-Investment-Banks-POLICY-PERSPECTIVES-web.pdf
Private Participation in Infrastructure Database (2018) World Bank’s PPI database. Retrieved March 13, 2018, from https://ppi.worldbank.org/snapshots/country/india
RBI (2015) Corporate bond markets in India: a framework for further action, Speech by Shri Harun R. Khan, Deputy Governor, 27 October 2015 at FICCI CAPAM – 2015, Mumbai. https://www.rbi.org.in/scripts/FS_Speeches.aspx?Id=980&fn=6
Treco K, Stephens C, Marten D (2018) Estimation of current flows and future needs of low-carbon transition in major economies of Asia until 2030. In: Anbumozhi V, Kalirajan K, Kimura F (eds) Financing for low-carbon energy transition: unlocking the potential of private capital. Springer, Singapore, pp 17–44
UK Green Investment Bank (2017) UK green investment bank limited annual report and financial statements 2016–17, Edinburgh. http://greeninvestmentgroup.com/media/185901/gib-annual-report-2016-17-final.pdf
UNEP (2016) Delivering a sustainable financial system in India, UNEP Inquiry: design of a sustainable financial system.
UNEP and the World Bank Group (2017) Roadmap for a sustainable financial system. UN Environment Inquiry. http://unepinquiry.org/publication/roadmap-for-a-sustainable-financial-system/
World Bank (2017) PPPs in India – will they regain their former glory? http://blogs.worldbank.org/ppps/ppps-india-will-they-regain-their-former-glory Accessed 27 Jun 2018
Yoshino N, Taghizadeh-Hesary F (2017) Alternatives to bank finance: role of carbon tax and hometown investment trust funds in development of green energy projects in Asia. ADBI working paper 761, Asian Development Bank Institute, Tokyo. https://www.adb.org/publications/alternatives-bank-finance-role-carbon-tax-and-hometown-investment-trust-funds
Yoshino N, Taghizadeh-Hesary F (2018) Alternatives to private finance: role of fiscal policy reforms and energy taxation in development of renewable energy projects. In: Anbumozhi V, Kalirajan K, Kimura F (eds) Financing for low-carbon energy transition: unlocking the potential of private capital. Springer, Singapore, pp 335–354
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Asian Development Bank Institute
About this entry
Cite this entry
David, D., Venkatachalam, A. (2019). A Comparative Study on the Role of Public–Private Partnerships and Green Investment Banks in Boosting Low-Carbon Investments. In: Sachs, J., Woo , W., Yoshino, N., Taghizadeh-Hesary, F. (eds) Handbook of Green Finance. Sustainable Development . Springer, Singapore. https://doi.org/10.1007/978-981-10-8710-3_25-1
Download citation
DOI: https://doi.org/10.1007/978-981-10-8710-3_25-1
Received:
Accepted:
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-8710-3
Online ISBN: 978-981-10-8710-3
eBook Packages: Springer Reference HistoryReference Module Humanities and Social SciencesReference Module Humanities