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OECD Roundtable Examines Catalyzing Investment in Low-carbon Infrastructure

OECD25 September 2012: The Organisation for Economic Co-operation and Development (OECD) held a special roundtable looking at how to create a long-term policy framework that catalyzes private investment in low-carbon, climate-resilient (LCR) infrastructure.

The roundtable was divided into two parts, with a different panel of national government representatives and invited experts for each part. The first panel looked broadly at the challenges, risks and opportunities in attracting private investment in LCR infrastructure. The OECD Environment Directorate introduced the issue, outlining finance gaps, the challenges of scaling up capital sources, barriers to institutional investment in clean energy, the water sector and energy efficiency, and issues to be addressed by any policy reform effort aimed at improving the risk-return of green infrastructure. The OECD Directorate for Financial and Enterprise Affairs also presented on recent experience in middle-income countries, such as India and Malaysia.

The panel discussed the possible elements of a policy framework, such as: goal setting and policy alignment; policy reforms to strengthen market incentives for LCR infrastructure; financial policies, regulations, tools and instruments to provide transitional support for new green technologies; support for green technology R&D and capacity building; and promotion of green business and consumer behavior.

The panel also examined case studies such as KfW's financing of green building in Germany, financing sustainable initiatives for low-income housing in South Africa, and UK efforts to foster transition to low-carbon production in British industry.

The second panel looked at the issue within the context of the transport sector, with a focus on Mexico City's bus rapid transit (BRT) system and India's work on developing a sustainable urban mobility platform. German International Development (GIZ) also presented on the issue of nationally appropriate mitigation actions (NAMAs) for the transport sector.

The roundtable was co-sponsored by the OECD and the Climate Change Expert Group (CCXG), which is jointly supported by the OECD and the International Energy Agency (IEA), with funding and in-kind contributions from the UK and German Governments. It was held on 25 September 2012, at OECD headquarters in Paris, France. [Roundtable Presentations and Documents]