This policy brief provides answers to two questions. First, why energy efficiency investments continue to represent a marginal share of green investment volumes, even though energy efficiency improvements are among the most prominent investment categories in green finance taxonomies. Second, what corrective actions governments can take, especially with regard to developing-country supply chains.
The intended primary audiences of this document are investors and developers of green finance taxonomies. In line with the second question above, government officials working in energy-related agencies are the secondary audience of this document.
The document is organised around three additional sections. First, context on private sector investment in energy efficiency is provided. Then, the main green finance taxonomies are described, with a special emphasis on their coverage of energy efficiency. To conclude, recommendations for bolstering energy-efficiency investment are presented, with a focus on developing country supply chains.
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