Europe

Energizing Finance: Understanding the Landscape 2018

November, 2018

The Energizing Finance series is the first and only in-depth attempt to capture multiple years of data on investment for the two key areas of energy access: electrification and clean cooking. It focuses on public and private finance commitments in 20 developing countries – known as the high-impact countries – that together account for nearly 80% of those living without access to sustainable energy.
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Energizing Finance 2018 (Full Report)(4.8 MB)
Energizing Finance 2018 (Executive Summary)(1.6 MB)

Approaches to assess the additionality of climate investments: Findings from the evaluation of the Climate Public Private Partnership Programme (CP3)

March, 2018

As governments and development finance institutions scale up delivery of climate finance commitments, the question of how to measure and ensure additionality becomes increasingly important. This paper presents new methodological approaches for assessing the additionality of climate investments, developed by Climate Policy initiative through ongoing work monitoring and evaluating the Climate Public Private Partnership (CP3).
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Approaches to assess the additionality of climate investments _ Findings from the evaluation of the Climate Public Private Partnership Programme (CP3)(603.8 kb)

Markets for low carbon, low cost electricity systems (working paper)

October, 2017



Today we are publishing a working paper on the future design of the energy market as part of a program ...
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CPI Markets for low carbon low cost electricity systems October 2017(477.9 kb)

Financing clean power: a risk-based approach to choosing ownership models and policy & finance instruments

September, 2017

This week we publish a working paper setting out a framework for: (i) determining how risks for power investments should ...
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Financing clean power a risk-based approach Sept 2017(1.1 MB)

Clean Energy Investment Trust: financial innovation for pension funds & insurers

August, 2017

This week we launch our design for an investment-grade financing vehicle targeted at institutional investors that reduces the cost of ...
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August 2017 CPI Energy Finance CEIT Structuring report final(637.4 kb)

Overcoming barriers to institutional investments in renewables

August, 2017

Since the financial crisis in 2008, interest in matching the predictable long-term liabilities of institutional investors with the low-risk cashflows ...
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August 2017 CPI Energy Finance CEIT Barriers report final(319.5 kb)

Flexibility: the path to low-carbon, low-cost electricity grids

April, 2017

Wind and solar have become established resources for low-carbon electricity around the world. Cost declines for those technologies now allow ...
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CPI Energy Finance – Flexibility: the path to low carbon low cost grids April 2017(1.0 MB)

European Renewable Energy Policy and Investment

December, 2016

Europe’s policy and finance environment has enabled some of the fastest deployments of renewable assets globally. In 2016, it ...
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European Renewable Energy Policy and Investment 2016(4.5 MB)

Beyond YieldCos

June, 2016

US-based YieldCos, such as Terraform Power and NRG Yield, raised equity worth $23 billion dollars by mid-2015, only to see their share prices fall by as much as 60% just a few months later. The rise and fall of new investment ideas nearly always provides valuable lessons, and the US YieldCos are no exception.
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Beyond YieldCos – Full Report(672.5 kb)

Policy and investment in German renewable energy

April, 2016

This report examines the availability of capital for renewable energy, the cost-effectiveness of different mixes of capital and investors used in meeting Germany’s medium and long-term deployment goals, and the potential impact of policies on this mix of investment.
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Policy and investment in German renewable energy(3.8 MB)
Policy and investment in German renewable energy – Summary(645.7 kb)
Overview of most important policy issues(33.6 kb)

Regulierungen und Investitionen für die Energiewende

April, 2016

Die Climate Policy Initiative hat das Investitionspotenzial für erneuerbare Energien in Deutschland, die Kosteneffizienz verschiedener Zusammensetzungen von Investoren sowie den potenziellen Einfluss von Regulierungen auf den Investorenmix untersucht.
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Regulierungen und Investitionen für die Energiewende – Zusammenfassung(635.7 kb)
Übersicht der wichtigsten Regulierungsbereiche(38.0 kb)

Moving to a Low-Carbon Economy

October, 2014

With the right policies, the transition to a low-carbon energy system consistent with avoiding the most damaging effects of climate change could free up trillions of dollars over the next 20 years to invest in better economic growth.
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Regional Fact Sheets: Moving to a Low-Carbon Economy(87.0 kb)
Moving to a Low-Carbon Economy: The Financial Impact of the Low-Carbon Transition(715.1 kb)
Moving to a Low-Carbon Economy: The Impacts of Policy Pathways on Fossil Fuel Asset Values(2.3 MB)

San Giorgio Group Brief: Early Lessons on Introducing Energy Performance Contracts in Italy – Milan’s Energy Efficiency Program

September, 2014

Governments around the world use energy performance contracts (EPCs) with energy service companies (ESCOs) to reduce the energy costs and carbon emissions of public buildings without any budget outlay on their part. This brief draws lessons from the first program of this kind in Italy to cover energy savings alone and introduce pure EPC on a regional scale.
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SGG Brief – Early Lessons on Introducing Energy Performance Contracts in Italy – Milan’s Energy Efficiency Program(314.9 kb)

San Giorgio Group Brief: How Spain created a world-leading CSP industry then shattered investor confidence

August, 2014

Part of a series looking at the role of public finance in driving concentrated solar power (CSP) deployment and cost reductions, this report draws lessons from Spanish support policies which drove the creation of a world-leading industry and then shattered investor confidence through retroactive changes.
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SGG Brief – The Role of Public Finance in CSP – How Spain created a world-leading industry then shattered investor confidence(488.1 kb)

What Is Climate Finance? Definitions to Improve Tracking and Scale Up

July, 2014

This brief explains CPI’s understanding and definition of key climate finance terms and the reasons for these definitions to inform the debate and build a common understanding among stakeholders.
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What Is Climate Finance? Definitions to Improve Tracking and Scale Up(208.3 kb)

Roadmap to a Low Carbon Electricity System in the U.S. and Europe

June, 2014

Electricity systems across the U.S. and Europe face significant challenges in the transition to low-carbon energy. While the transition provides plenty of opportunities for investors, businesses, and consumers alike, the current business and regulatory models of investor owned utilities (IOUs) and independent power producers (IPPs), which have mainly developed around competitive markets for fossil fuel generation, are particularly ill-suited to take advantage of these new opportunities.
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Roadmap to a Low Carbon Electricity System – Executive Summary(154.3 kb)
Roadmap to a Low Carbon Electricity System – Parts 1 and 2(691.8 kb)
Roadmap to a Low Carbon Electricity System – Fact Sheets(105.5 kb)

Global Landscape of Climate Finance 2013

October, 2013

The most comprehensive inventory of climate finance to-date, The Global Landscape of Climate Finance 2013, finds that global climate finance flows have plateaued at USD 359 billion, or around USD 1 billion per day – far below even the most conservative estimates of investment needs.
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The Global Landscape of Climate Finance 2013(1.6 MB)

San Giorgio Group Case Study: Jädraås Onshore Windfarm

September, 2013

CPI describes how a combination of public policies and financial instruments, and robust private risk management measures mobilized EUR 360 million of private investment in Scandinavian Europe’s largest windfarm, delivering power to 100,000 homes.
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Jadraas Onshore Windfarm – SGG Case Study(1.1 MB)

The Policy Climate

April, 2013

In The Policy Climate, we offer an overview of policy issues relevant to climate change across the world. We find that the implementation of policy relevant to climate change, and its impact, accelerated markedly over the last decade, despite the slow pace of international climate negotiations.
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The Policy Climate(5.2 MB)

Buildings Energy Efficiency in China, Germany, and the United States

April, 2013

This report compares energy efficiency policy in buildings in China, Germany, and the United States, providing the context for, and describing, policies in these three countries in order to lay the groundwork for future review of policy effectiveness.
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Buildings Energy Efficiency in China, Germany, and the United States(1.0 MB)

The Role of National Development Banks in Catalyzing International Climate Finance

March, 2013

National Development Banks (NDBs) can play a big role in climate finance. In many cases, they already are: In CPI’s most recent estimate, NDBs, together with bilateral financial institutions, raised and channeled USD 54 billion in 2010/2011 to renewable energy, energy efficiency, and other climate-related measures.

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The Role of National Development Banks in Catalyzing International Climate Finance(3.2 MB)

The Challenge of Institutional Investment in Renewable Energy

March, 2013

Institutional investors, which together manage assets of over $70 trillion, often have investment objectives that are aligned with the investment profile of infrastructure. At first glance, access to this large pool of capital and the alignment of objectives should help lower the costs of financing renewable energy. In this study, CPI finds that while these investors could supply a significant share of the total required investment, various factors limit the extent to which they can invest in a way that could lower the cost of financing renewable energy. Furthermore, financial regulation of institutional investors, regulation of energy markets, and renewable energy policy, often create additional obstacles to renewable energy investment.
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The Challenge of Institutional Investment in Renewable Energy(2.0 MB)
The Challenge of Institutional Investment in Renewable Energy – Executive Summary(874.5 kb)
The Challenge of Institutional Investment in Renewable Energy – Factsheet(469.4 kb)

Risk Gaps

January, 2013

Risk — whether real or perceived — is the single most important factor preventing renewable energy projects from finding financial investors, or raising the returns that these investors demand. It is also one thing that policymakers can cause, control, alleviate, or help mitigate. In a series of three studies, titled Risk Gaps, CPI maps the availability of risk instruments against demand and analyzes several new, potential instruments designed to address the biggest gaps: first-loss protection instruments and policy risk insurance.
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Risk Gaps: Executive Summary(589.8 kb)
Risk Gaps: A Map of Risk Mitigation Instruments for Clean Investments(878.0 kb)
Risk Gaps: Policy Risk Instruments(778.4 kb)
Risk Gaps: First-Loss Protection Mechanisms(798.7 kb)

Effective Green Financing: What have we learned so far?

December, 2012

Overall, while policies and public resources are affecting the performance of investments in ways consistent with low carbon growth, more action is required to help private actors overcome real and perceived risks — in developing and developed markets — and deliver green investments at large scale.
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Effective Green Financing – What have we learned so far?(383.3 kb)

Global Landscape of Climate Finance 2012

December, 2012

Global annual investment to curb climate change reached approximately USD 364 billion in 2010/2011. This amount, while significant, falls short of most estimates of investment needed to limit global warming to two degrees Celsius.
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The Landscape of Climate Finance 2012(1.5 MB)
The Landscape of Climate Finance 2012 – Executive Summary(216.9 kb)
Lanscape of Climate Finance 2012: webinar presentation(1.2 MB)

German Landscape of Climate Finance

November, 2012

By compiling data from a wide range of sources, we create the most comprehensive snapshot to-date of the current state of German climate finance. Our research suggests that EUR 37 billion, or 1.5% of GDP, was invested in 2010 to support the German transition to a low-carbon economy. The private sector provided more than 95% of this finance.
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The Landscape of Climate Finance in Germany – Webinar slides(847.1 kb)
The Landscape of Climate Finance in Germany – Annexes(1.7 MB)
Landscape of Climate Finance in Germany – Full Report(1.7 MB)
Landscape of Climate Finance in Germany – Executive Summary – in English(626.7 kb)
Landscape of Climate Finance in Germany – Executive Summary – in German(803.9 kb)

Die deutsche Landschaft der Klimafinanzierung

November, 2012

Als fuehrende Kraft in Europas Entwicklung hin zur schadstoffarmen Gesellschaft hat Deutschland ehrgeizige Ziele für seinen Beitrag zum globalen Kampf gegen den Klimawandel gesetzt. Die Erreichung dieser Ziele erfordert erhebliche Investitionen in erneuerbare Energien, Energieeffizienz und andere Massnahmen zur Verringerung von Treibhausgasemissionen. Mit Hilfe von Daten aus einer Vielzahl von Quellen geben wir in in unserem Bericht den derzeit umfassendsten Ueberblick über den aktuellen Stand der deutschen Klimafinanzierung. Unsere Untersuchungen fuer das Jahr 2010 zeigen, dass 37 Milliarden Euro oder 1,5% des BIP in den Übergangs zu einer kohlenstoffarmen Wirtschaft investiert wurden.
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Landscape of Climate Finance in Germany – Executive Summary – in German(803.9 kb)

Public Climate Finance: A Survey of Systems to Monitor and Evaluate Climate Finance Effectiveness

July, 2012

This paper examines the M&E systems applied by a selection of eight multilateral and bilateral intermediaries, as well as the United Nations Framework Convention on Climate Change reporting framework. It was originally developed as a background paper for ‘Improving the Effectiveness of Climate Finance: Key Lessons’, a joint study by a consortium of researchers from Environmental Defense Fund, Climate Policy Initiative, Brookings Institution, and Overseas Development Institute on the topic of the effectiveness of climate finance published in November 2011.
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Public Climate Finance – Survey(1.0 MB)

San Giorgio Group Case Study: Walney Offshore Windfarms

June, 2012

Walney Offshore Windfarms (WOW) in the U.K., the largest offshore windfarm in the world in 2012, faced financing challenges because of the risks associated with this immature though promising technology and the escalating European debt crisis. Through a combination of U.K. policy support and innovative financial engineering, the project was successful in attracting nontraditional investors including a pension and a private equity fund.
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Walney-Offshore-Windfarms(1.1 MB)

European Electricity Infrastructure: Planning, Regulation, and Financing

January, 2012

Investment in European electricity transmission requires facilitation at the European level. The rate at which renewable energy is integrated into ...
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EU Grid Workshop Summary 2012.01.25(356.6 kb)

Improving the Effectiveness of Climate Finance

November, 2011

A joint study by Environmental Defense Fund, Climate Policy Initiative, Brookings Institution, and Overseas Development Institute.
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Improving the Effectiveness of Climate Finance: A Survey of Leveraging Methodologies(673.9 kb)
Improving Effectiveness of Climate Finance: Key Lessons(738.3 kb)

The Landscape of Climate Finance

October, 2011

In this paper, CPI assesses the current status of the climate finance landscape, mapping its magnitude and nature along the life cycle of finance flows, i.e. the sources of finance, intermediaries involved in distribution, financial instruments, and final uses.
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Climate Finance Executive Summary(406.4 kb)
The Landscape of Climate Finance(1.5 MB)

The Impacts of Policy on the Financing of Renewable Projects: A Case Study Analysis

October, 2011

CPI studied six large-scale renewable electricity generation projects in the United States and Europe to evaluate how policy affects project economics, as well as the cost and availability of financing.
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Policy Impacts on Financing of Renewables(752.0 kb)

Smart Power Market Project

September, 2011

Decarbonizing the EU power system involves more than investment in generation and grid – it requires a smart power market as well. A new study led by CPI shows that the current EU power market design does not effectively support European member states’ plan to connect 200GW of wind and solar power to the transmission system by 2020.
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Smart Power Market Project Overview(699.5 kb)
Smart Power Market Executive Summary(691.5 kb)
Neuhoff_Smart power markets for Europe(626.3 kb)
Congestion Management Paper(451.7 kb)
Quantitative Simulation Paper(1.6 MB)
Nodal Pricing Implementation Q&A Paper(830.1 kb)
Technical Aspects of Nodal Pricing Workshop Report(211.6 kb)

The German Energy Concept: Policies to Support the Thermal Retrofit of Buildings

September, 2011

Efficiency improvements in the building sector are a key component of the German Energy Concept. The stated objective of the Concept is a 20% reduction in the heat requirement of buildings by 2020, so as to achieve an 80% reduction in the primary energy requirement by 2050. In these CPI reports and briefs, CPI analysis addresses questions emerging from the review of policy instruments and programs focused on this objective.
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Drivers of Thermal Retrofit Decisions – A Survey(326.3 kb)
Information Tools for Energy Demand Reduction(774.2 kb)
Using-Tax-Incentives-to-Support-Thermal-Retrofit-Summary(277.4 kb)
Costs, Benefits, and Financial Support for Thermal Retrofit(409.4 kb)
Policy Map(833.1 kb)
Policies Supporting Thermal Efficiency in Germany's Building Sector(268.3 kb)
Effectiveness of Energy Performance Certificates(1.6 MB)

Energiekonzept: Instrumente für energetische Sanierungen

August, 2011

Die Steigerung der Energieeffizienz im Gebäudesektor steht im Zentrum des Energiekonzepts der Bundesregierung. Dort ist das Ziel festgeschrieben, den Wärmebedarfs um 20% bis 2020 zu reduzieren, um anschließend eine Verringerung des Primärenergiebedarfs um 80% bis 2050 zu erreichen. In den vorliegenden Studien analysiert CPI Fragen zu Politikinstrumenten zur Erreichung dieser Ziele.
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Zusammenfassung im DIW Wochenbericht Energetische Sanierung(434.9 kb)
Kosten, Nutzen und finanzielle Unterstützung für energetische Sanierungen
Steueranreize zur Förderung energetischer Sanierungen
Informationsinstrumente zur Förderung von Energieeinsparungen
Beweggründe für Sanierungsentscheidungen und Zweifamilienhausbesitzern
DIW Wochenbericht – Die Effektivität des Energieausweises – Ergebnisse aus Deutschland

Impact of Reductions and Exemptions in Energy Taxes and Levies

June, 2011

In this report, CPI studied the impact of four German energy policies and their related exemptions for industry, differentiated by the size of the firm and the industrial sub-sector.
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Reductions and Exemptions on Energy Taxes (German)(443.4 kb)
Reductions and Exemptions on Energy Taxes(1.3 MB)

The Role of Government Policy in the Development of Solar Photovoltaic Power: Project Overview

May, 2011

CPI's focus in this project has been on the effectiveness of policy in helping PV reach its technical potential. In this project overview, we address several of the major questions that policymakers face in their effort to make PV more cost competitive.
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Role of Government in PV Power Development(185.8 kb)

PV Industry and Policy in Germany and China

March, 2011

In this paper, CPI provides an overview of the PV industry and policies in Germany and China, including deployment support, investment support for manufacturing plants, and R&D support measures.
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PV Industry Germany and China(1.0 MB)

Carbon Pricing Project

February, 2011

To drive low-carbon investment, policy frameworks must capture companies’ attention, provide clarity for business decisions, and enable low-carbon investment decisions. CPI and Climate Strategies’ recent joint study indicates that the EU ETS contributes to these requirements, but it also suggests that improvements such as increasing stringency, limiting CDM use, changes in international financial reporting standards, and complementary policies are needed.
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Carbon Pricing Exec Summary(364.2 kb)
Climate Change, Investment, and Carbon Markets and Prices(2.3 MB)
Emissions Trading Schemes under IFRS(393.9 kb)
Relative Importance of Policy Elements(572.4 kb)
Role of CDM Post-2012(468.2 kb)