ABSTRACT
The discourse on climate finance usually involves the computation of the money needed to achieve a defined outcome such as tripling renewable energy by 2040 or reaching net zero by 2050.
The world is not short of capital. Globalisation of international finance is a reality with seamless flow of capital in the quest of risk-adjusted returns.
This chapter examines the barriers to the flow of capital to finance investment for a few desired outcomes – the barriers in a specific context being some combination of the return and risk matrix. It explores feasible policy options for overcoming these barriers to enable smooth private capital flows for the desired investments. It takes a realistic view of what governments of the advanced industrial economies could, rather than should, do individually or collectively through multilateral development financial institutions like the World Bank and the Asian Development Bank. It looks at India’s own experiences and draws upon the learnings of these.
