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Renewable Energy Financing and Climate Policy Effectiveness

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Published: July, 2011

According to the International Energy Agency (IEA), $6 trillion will need to be invested in renewable electricity and biofuels over the next 25 years just to meet current emissions reduction commitments. Policies will play a significant role in driving this investment. CPI’s Renewable Energy Finance project assesses the impact of policy on the availability and mix of investment in renewable energy.

Finance and investment link policies and policy effectiveness outcomes. Policy impacts the cost, availability, requirements, and structure of finance. In turn, these factors can influence whether and how policies achieve their objectives.

This paper provides an initial framework for understanding the link between policies, finance, and policy effectiveness outcomes.