A Comparative Study on the Role of Public–Private Partnerships and Green Investment Banks in Boosting Low-Carbon Investments

  • Dharish David
  • Anbumozhi VenkatachalamEmail author
Living reference work entry
Part of the Sustainable Development book series (SD)


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.


Climate change Clean energy Green infrastructure Green investment bank public–private partnership 

JEL Classifications

F21 F34 G29 Q28 


  1. 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 397–422CrossRefGoogle Scholar
  2. 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 1–27CrossRefGoogle Scholar
  3. 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 1–16CrossRefGoogle Scholar
  4. Baietti A (2013) Green infrastructure finance: a public-private partnership approach to climate finance. World Bank, Washington DC. License: CC BY 3.0 IGO
  5. Delmon J (2009) Private Sector Investment in Infrastructure. Project Finance, PPP Projects and Risk. 2nd edition. Kluwer Law International. The NetherlandsGoogle Scholar
  6. Economist Intelligence Unit (EIU) and Asian Development Bank (ADB) (2015) Evaluating the environment for public–private partnerships in Asia-Pacific: the 2014 Infrascope.
  7. Gardiner A, Bardout M, Grossi F, Dixson-Declève S (2015) Public-private partnerships for climate finance. TemaNord 2015. Nordic Council of Ministers, p 577.
  8. 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.
  9. Green Bank Network (2018) Green finance organization (Japan). Accessed 20 Jun 18
  10. 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 2016Google Scholar
  11. Green Investment Bank (GIB) (2017) UK Green Investment Bank Limited Annual Report and Financial Statements 2016–17, UK Green Investment Bank Limited.
  12. GTDT (2018a) Project finance in Japan, April 2018. Accessed 27 Jun 18
  13. GTDT (2018b) Project finance in India, April 2018. Accessed 27 Jun 18
  14. GTDT (2018c) In India – an interview with Anjan Dasgupta, June 2018. Accessed 27 Jun 2018
  15. 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 17–29Google Scholar
  16. 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 359–396CrossRefGoogle Scholar
  17. IREDA (2017) IREDA 30th annual report for 2016–17.
  18. JBIC Press Releases (2018) JBIC press releases sectors: environment. Accessed 25 May 2018
  19. Konrad-Adenauer-Stiftung eV (2017) Climate finance report 2017: private sector and climate finance in the G20 countries.
  20. 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 335–366CrossRefGoogle Scholar
  21. Meltzer JP (2016) Financing low carbon, climate resilient infrastructure: the role of climate finance and green financial systems, Brookings Institution.
  22. MOSPI, Government of India (2018) National accounts statistics 2018, Ministry of Statistics and Program Implementation (MOSPI) Government of India.
  23. 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.
  24. OECD (2017) Green investment banks: innovative public financial institutions scaling up private, low-carbon investment. OECD environment policy papers, No. 6, OECD Publishing, Paris.
  25. OECD and Bloomberg Philanthropies (2015) Green investments banks: policy perspectives.
  26. Private Participation in Infrastructure Database (2018) World Bank’s PPI database. Retrieved March 13, 2018, from
  27. 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.
  28. 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 17–44CrossRefGoogle Scholar
  29. UK Green Investment Bank (2017) UK green investment bank limited annual report and financial statements 2016–17, Edinburgh.
  30. UNEP (2016) Delivering a sustainable financial system in India, UNEP Inquiry: design of a sustainable financial system.Google Scholar
  31. UNEP and the World Bank Group (2017) Roadmap for a sustainable financial system. UN Environment Inquiry.
  32. World Bank (2017) PPPs in India – will they regain their former glory? Accessed 27 Jun 2018
  33. 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.
  34. 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 335–354CrossRefGoogle Scholar

Copyright information

© Asian Development Bank Institute 2019

Authors and Affiliations

  1. 1.Singapore University of Social Sciences (SUSS)SingaporeSingapore
  2. 2.Economic Research Institute for ASEAN and East Asia (ERIA)JakartaIndonesia

Personalised recommendations