Designing smart green finance incentive schemes: The role of the public sector and development banks
This paper identifies criteria and principles for assessing whether a green incentive scheme is ‘smart,’ and uses these to evaluate financial instruments most commonly used in designing green incentive schemes (concessional lending). This includes green credit lines, grants for technical assistance and investments, and guarantees and insurance products. Chapter 5 of the publication provides a case study analysis of the use of these green financial incentives (6 pp). The authors note that while this paper focuses on the role of development finance institutions in the design of smart green incentives, such work should ideally be led by developing country governments and their national development finance institutions.