GREEN Action Task Force focuses on finance and investment in green economy. This programme area covers several topics:
The project will be constructed on the analysis of "Energy subsidies in the EaP countries" recently conducted by the OECD as part of the EU-funded EaP GREEN project and will focus on the reform of tax expenditures (or tax revenue foregone due to special tax exemptions, deductions, tax rate reductions) which are more difficult to account for and are often overlooked in the subsidy debate.
The proposed activities will widen an application of tools developed in 2017-18 to help government authorities responsible for environmental and public finance management to design green public investment programmes in line with good international practices. The existing tools that will be used to include the OECD Council Recommendation on Good Practices for Public Environmental Expenditure Management, as well as costing tools and targeted training material on managing green public investment programmes at the national and/or sub-national level developed for Kazakhstan, Moldova and Kyrgyzstan. The specific activities will include two additional country-level projects on the costing of priority climate-related public investment programmes within government authorities and improving the leveraging effect of public funds and the effectiveness of sector and budget support from donors, where available.
This work will identify the priority steps needed to scale up financing for the adaptation of infrastructure to climate change effects, focusing on the mainstreaming of adaptation requirements into investment processes rather than the provision of infrastructure specifically intended for adaptation. Specific work could include reviewing approaches to: understand and characterised climate risks to the focused country; possible methodologies available for economic and financial analysis; and choose relevant adaptation measures to be taken to make infrastructure resilient to climate change.
This work will analyse the role monetary and central bank policies can play in motivating commercial banks in the countries of the region to increase their lending for green investments. Given that there is very little knowledge about and experience with working with central banks in the target region, this project will be innovative and will aim to establish the baseline of the extent to which green banking regulations are a realistic option for the Eurasia region. The envisaged activities will include analysing the potential role of monetary policies and macro-prudential financial regulation in commercial banks’ lending strategies and the expansion of credit directed towards low-carbon projects and businesses and organising a regional meeting with the participation of all countries of the region, including representatives of Ministries of Finance, central banks and commercial banks but also other relevant actors in the market.
Lessons learnt from the activities carried out under this areas will be summarised and discussed with relevant national and international stakeholders at annual regional conferences which will involve government officials from Ministries of Environment, Economy, Finance and Energy of the EaP and Central Asia countries, representatives of International Finance Institutions and multilateral financing facilities active in the region, International Organisations and donor countries. Experts from commercial banks and other domestic financing institutions, as well as academics, consultants, officials from green/climate related initiatives, NGOs will also be invited to take part in the debate. The preparation of the conferences will be based on experiences gained from the first International Conference “Unlocking Private Finance For Energy Efficiency And Greener, Low-Carbon Growth” organised by OECD and the EU on 29-30 June 2017 in Brussels with the support of the EU (EaP GREEN) and Germany (IKI).
This work will provide interested national funding entities with evidence based analysis and policy recommendations to enhance their capacity in appraisal and implementation of green projects as well as reduction of various project-related risks and transaction costs. Activities will include:
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