World Bank Releases Study on Climate Investment in South Asia
1 December 2012: The World Bank has released a report that aims to facilitate the development of a policy framework for promoting climate-friendly investment in South Asia. A major output of the study is the piloting of the Climate Investment Readiness Index, a tool for evaluating the enabling environment for private sector investment in different countries.
The study, titled “Assessing the Investment Climate for Climate Investments: A Comparative Framework for Clean Energy Investments in South Asia in a Global Context,” discusses the need for clear, credible, and long-term policy frameworks to attract private investment at scale. It goes on to discuss the variation in the policies, implementation capacities, and investment drivers among countries in South Asia, noting how improved frameworks and information can provide climate investors with legal certainty and lower investment risks.
Key findings include: India's favorable environment for investments in solar photovoltaics and onshore wind; the greater sophistication of renewable energy and energy efficiency frameworks in India relative to neighboring countries; and the relevance of sub-national policies, regulations, and incentives.
In its conclusion, the study underscores the need to survey firms' perceptions about the favorability of investment climates, in addition to the consideration of macroeconomic indicators and the presence of policies, regulations and incentives. [Publication: Assessing the Investment Climate for Climate Investments]