FINANCIAL INSTRUMENTS USED BY THE PUBLIC SECTOR TO MOBILIZE PRIVATE CAPITAL TOWARDS CLIMATE PROJECTS

Abstract

THIS RESEARCH PROJECT EXPLORES THE VITAL ROLE OF THE PUBLIC SECTOR IN ATTRACTING PRIVATE INVESTORS AND FINANCIERS TO OVERCOME INVESTMENT CONSTRAINTS. THE THESIS WILL ALSO ANALYZE THE OBSTACLES AND RISKS PERCEIVED WHEN INVESTING IN SUSTAINABLE PROJECTS IN DEVELOPING COUNTRIES AND HOW TO MANAGE RISKS. THE PAPER STARTS BY CLOSELY EXAMINING KEY STAKEHOLDERS, ENCOMPASSING BOTH PUBLIC AND PRIVATE ACTORS. THIS STUDY WILL EXPLAIN THE RISK ANALYSIS NEEDED TO EVALUATE SUCH PROJECTS, AND WILL SUBSEQUENTLY EXPLORES ADVANCED STRATEGIES FOR RISK MITIGATION AND EFFECTIVE MANAGEMENT. THE RESEARCH THEN DELVES INTO THE PUBLIC SECTOR'S CAPACITY AND RESPONSIBILITY TO CREATE AN INCENTIVE GUIDELINE TO ATTRACT PRIVATE FINANCING TOWARDS RENEWABLE ENERGY PROJECTS. BRIDGING THE FINANCING GAP REQUIRED TO CURTAIL CLIMATE CHANGE, THROUGH THE USE OF RISK-MITIGATION TOOLS AND STRUCTURED CAPITAL FINANCE METHODS. BY DOING SO, THIS STUDY AIMS TO CONTRIBUTE VALUABLE INSIGHTS TO THE ACADEMIC DISCOURSE SURROUNDING SUSTAINABLE DEVELOPMENT FINANCE.