Category 2 Tools
Create an overall financial environment conducive for clean energy investments through clear policies, strong regulatory frameworks, and offsetting specific market related risks.
Smart and consistent financial policies affecting energy investments, including overall tax and trade regulations, regulation determining economic stability, and limiting the risk of price volatility.
A set of measures that, at a reasonable level, offset political risks for investors, such as political risk insurance, guarantees, and valid contracting and off-take arrangements.• A set of measures that, at a reasonable level, offset political risks for investors, such as political risk insurance, guarantees, and valid contracting and off-take arrangements.
Strong relations to more mature economies and development banks, where necessary, for higher liquidity, for loan and performance guarantees, and for optimal financial structuring.
Review the international regulations for financial flows from private investors in developed countries to developing countries.
Removal of fossil fuel subsidies.
Example of tools
Smart and consistent financial policies affecting energy
Offsetting specific political and market related risks
Strong relation to mature economies and MDBs for higher liquidity, loan and performance guarantees, optimal fiscal structuring
Review of international regulation for financial flows from developing to developed countries
Removal of fossil fuel subsidies