Abstract

The fulfilment of the commitment to decarbonization at a global level implies the need to invest in clean technologies on a global scale that requires large volumes of financing in a complex context where there are significant technological uncertainties, and the distribution of resources is not homogeneous around the world. Against this backdrop, incentives for investment in clean technologies are an instrument that, when properly designed, can boost private investment to achieve environmental goals. This report addresses the funding needs for investment in clean technologies, the current financing gap to move towards environmental sustainability, and conceptualizing the term investment incentive. It proposes classifying the different incentives into six broad categories: economic, financial, fiscal, market, regulatory, and of knowledge and collaboration, and then describes how they are being implemented in the United States, the European Union, China, Canada, India and the United Kingdom. Finally, conclusions and reflections are presented on the elements and dimensions to consider when designing, implementing, monitoring and evaluating the impacts of incentives for investment in clean technologies.

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