Table 1
Mapping of financing instruments to primary market barriers. • = primary effect; (•) = secondary/partial effect; – = not primarily addressed. Barriers correspond to those identified in Section 3.
| INSTRUMENT | UPFRONT CAPITAL | SPLIT INCENTIVES | INFORMATION ASYMMETRY | LENDER RISK AVERSION | SMALL PROJECT/TRANSACTION COSTS | DEMAND-SIDE ECONOMICS |
|---|---|---|---|---|---|---|
| Grants & Subsidies | • | – | – | – | – | (•) |
| Concessional Loans | • | – | – | (•) | – | (•) |
| Carbon Taxes/ETS Revenues | – | – | – | – | – | • |
| ESCO/EPC | • | (•) | • | • | – | – |
| PAYS/On-Bill Financing | • | (•) | – | (•) | – | – |
| PACE Financing | • | • | – | (•) | – | – |
| Green Mortgages | • | – | • | • | – | – |
| White Certificates | • | – | – | – | – | • |
| Energy Savings FiTs Pay-for-Performance programmes | – | • | – | – | – | • |
| De-Risking Instruments | (•) | – | (•) | • | – | – |
| Project Aggregation/OSSs | – | – | • | – | • | – |
| Secondary Markets/Securitisation | • | – | (•) | • | (•) | – |