Despite ongoing efforts, there continues to be a significant investment gap in building energy efficiency (BEE). Given the limited public resources, targeted green finance instruments can help bridge this gap. However, mainstreaming green finance is fraught with several challenges, including the lack of a global taxonomy and incoherent policy guidance. In this policy brief, we first propose improving national BEE standards, especially in the developing members of the G20, and to reduce differences between the national and global standards, which can significantly contribute to establishing a global taxonomy of green finance for BEE. Next, we propose a more focused and progressive implementation of the G20 Tokyo Declaration with systemic policy action, aligning fiscal and financial policy priorities with low-carbon energy transition goals that can catalyze the development of green finance.
- Fatih Yilmaz - King Abdullah Petroleum Studies and Research Center (KAPSARC)
- Nawaz Peerbocus - King Abdullah Petroleum Studies and Research Center (KAPSARC)
- Rishikesh Ram Bhandary - The Fletcher School, Tufts University
- Fang Zhang - Harvard Kennedy School, The Fletcher School
- Kelly Sims Gallagher - The Fletcher School
- Venkatachalam Anbumozhi - Economic Research Institute for ASEAN and East Asia
- Kaliappa Kalirajan- Crawford School of Public Policy, Australian National University