1887

OECD Environment Working Papers

This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.

English

Financing solutions to foster industrial decarbonisation in emerging and developing economies

Industry decarbonisation is a cornerstone to reach net-zero emissions by this mid-century. The diversity of industrial activities, processes and products, the complexity of global industrial value chains, and the international competition make industry decarbonisation a challenging objective. Annual investments in low-carbon technologies for industry decarbonisation need to increase by a factor of three to five by 2030 compared to current levels to align industrial emissions with net-zero pathways. This paper analyses available financing solutions to scale up investments at pace, especially in emerging and developing economies where industrial production is growing rapidly whilst available finance is limited. It highlights de-risking and financial instruments and models that can help accelerate investments and draws lessons from twelve financing industry decarbonisation case studies which demonstrate how private capital can be mobilised.

English

Keywords: economic instruments, climate mitigation, financial instruments, greenhouse gas emissions, low-carbon technologies, industry value chains, climate change, de-risking instruments, industry decarbonisation
JEL: Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; L60: Industrial Organization / Industry Studies: Manufacturing / Industry Studies: Manufacturing: General; O14: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Industrialization; Manufacturing and Service Industries; Choice of Technology; G23: Financial Economics / Financial Institutions and Services / Non-bank Financial Institutions; Financial Instruments; Institutional Investors; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
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