Back to CESC

Catalysing Early-Stage Investment: Addressing the Lack of Early-Stage Capital for Low-Carbon Infrastructure in Developing Economies


United Nations Environment Programme


Duncan Ritchie

Eric Usher


1 March 2012

Low-carbon technology developers in developing countries generally face a lack of early-stage financing. While late-stage financing is more readily available, this dearth of capital early in the project development process, coupled with immature policy conditions, creates a strong disincentive for first-movers in low-carbon development. To help developing countries decrease this high barrier to entry, the report recommends that public finance play an important role in filling market imperfections. It provides several investment and non-investment approaches to increase the impact of public finance by refocusing it on early-state investment.