Paying for Paris Interview | Santiago Lorenzo: Tax Credits, Climate Efficiency Standards
In this video, Santiago Lorenzo of ECLAC explains the role tax credits can play for countries financing their NDCs. Tax credits for green investment can incentivize private sector participation in climate-related projects by reducing costs.
He also explains the role that loan guarantees can play in mobilizing climate finance. Loan guarantees are a credit enhancement mechanism that can help reduce the risks faced by private sector investors and thus stimulate private investment in targeted sectors, like energy, forestry, and transportation.
He also explains how climate efficiency standards can help countries channel private investment to support their climate goals. Climate efficiency standards are regulations that governments put in place to guide investments related to specific products. They have typically focused on the efficiency of energy-related products such as light bulbs, appliances, and vehicles but also can apply to products in the housing and agriculture sectors. These regulations in turn encourage private investment by having the private sector comply and meet new standards.
This video is part of the Paying for Paris Climate Finance Resource Hub.