Global Climate Challenges, Innovative Finance, and Green Central Banking

Abstract

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Green and Renewable Energy Financing Policy in Indonesia

“…Agreements were reached with South Africa in 2021 worth $8.5 billion, in 2022 with Indonesia and Vietnam worth $20 billion, and in 2023 with Senegal worth €2.5 billion. Beneficiary countries need to develop plans to reduce their dependence on coal and ensure a smooth transition for affected companies and employees (Shirai, 2023).…”

Renewable Energy: Policy and Strategy

“…This indicates a lack of private capital due to economic, political, and exchange rate threats. Blended financing could benefit these countries by providing more public funding initially and gradually reducing funding as private capital increases based on track record and project expertise (Shirai, 2023). Through grants, technical assistance, loans, guarantees, and equity investments, public funds can reduce the risks borne by private investors.…”

Financing Investment in Times of High Public Debt

“…In 2021, the PBoC launched the Carbon Emission Reduction Facility which offers low-interest loans to financial institutions that help firms decarbonise their operations (see PBoC 2021). In the same year, the Bank of Japan introduced a green loans scheme, providing zero-interest financing to lenders supporting climaterelated projects (see Shirai 2022). 6…”