Financing the Low-Carbon Transition With the Role of Development Banks and Multilateral Institutions
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Annotatsiya
The global low- carbon transition has become one of the defining challenges of contemporary development and demands concerted, unprecedented mobilization of finance to either transit economy from high carbon paths and on toward sustainable, climate- resilient growth. This review aims to explore the role of development banks and multilateral financial institutions in financing this transition, particularly with regard to their institutional functions, financial instruments, operational mechanisms and barriers that hindered climate finance delivery. These institutions are highly relevant to low-carbon transformation because they address market failures, provide long-term and concessional capital, reduce investment risks, and help facilitate policy and institutional reform where private finance is not sufficient (and the paper elaborates on why).
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