There is a broad consensus on the need for clean energy to play a growing role in Chile’s electric grid. Yet, despite significant growth in the country’s clean energy market, barriers remain to the deployment of many of these technologies. Access to financing at a reasonable cost remains a key hurdle in some subsectors, including energy efficiency and nonconventional renewable energy projects that are small-scale, implemented by small- and medium-size enterprises, or that use innovative technologies.
Around the world, green banks and green bonds are emerging as two tools that can help countries speed up the deployment of clean energy solutions by attracting private capital. They can also help implement clean energy policies, meet carbon pollution reduction targets, and support economic development.
This issue brief explores opportunities for innovative green finance tools to boost clean energy investment in Chile and proposes some recommendations for supporting their development, including:
- Educating relevant stakeholders about innovative financing tools such as green banks and bonds
- Analyzing legal or regulatory changes to facilitate the implementation of green finance solutions
- Collaborating with international networks to gain expertise