Mainstreaming Framework Conditions for Environmental Finance – The Role of the Public Sector

  • Wolfgang Mostert
Open Access
Chapter

Abstract

The term “environmental finance” in this paper refers to standard financing products of commercial banks for investments in clean technology. Investments in EE&RE products represent the main potential market for these. Whereas the existence of a potentially large market for investments in EE&RE is beyond doubt, its realization needs unlocking. In unlocking the market potential, the public sector has two roles to perform: (i) to introduce a set of incentive instruments to create a large-scale and long-term demand; and (ii) to coordinate the activities of actors (supply-side actions). Concerted CT deployment programs comprise an integrated package of environmental finance, together with “demand pull” and “technical supply-side” measures to create demand for investments. As incentive to include environmental finance in their product portfolios, banks may require the inclusion of a “bank engagement program”, comprising measures that reduce their risks, their costs of transaction and their costs of capacity building, during the market upstart phase. Successful programs are complex. Yet a large number of instruments exist to customize solutions to local conditions, and the know-how to design and implement integrated packages is becoming increasingly well-established.

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Copyright information

© The Author(s) 2012

Open Access. This chapter is distributed under the terms of the Creative Commons Attribution Noncommercial License, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

Authors and Affiliations

  • Wolfgang Mostert
    • 1
  1. 1.W. Mostert AssociatesFrankfurtGermany

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