March 2010

This report, titled "Publicly Backed Guarantees as Policy Instruments to Promote Clean Energy", was commissioned by the SEF Alliance as part of its financing mechanisms study series.  It assesses the advantages and disadvantages of using different types of publicly backed guarantee structures at the various stages of clean energy product and technology innovation and deployment, examining the experience of public financing agencies and relevant lessons learned.   The main intended audiences are programme designers and implementers, as well as programme strategists and policymakers.

October 2009

At present, the private sector is not motivated to undertake the level of investment needed by the developing world. To generate private sector interest, the expected returns on low-carbon investments will need to match the risks. This is not the case on a sufficiently widespread basis to deliver the scale of investment required. However, in themselves, they are unlikely to be sufficient to drive investment at the level and speed required.