Saturday, May 01, 2010

State of the Art in Public Finance

This document has been prepared in conjunction with the 2008 launch
of the SEFI Public Finance Alliance (or “SEF Alliance”). The purpose of
the report is: 1) to consolidate relevant information about the initiative
– its structure, activities, prospective members, and the contribution it
can make to the development of global sustainable energy markets; and
2) to demonstrate - via concrete examples of innovative actions – some
of the synergies among the relevant programmes of prospective member
agencies around the world, as well as the potential net benefits that
these agencies can receive from participation.

The target audience of this report is officials who manage public money
dedicated to building sustainable energy markets. The document should
serve as a tool for these officials to become more familiar with the SEF
Alliance, as well as with the programmes of some of their sibling agencies
around the world. It should help them begin to consider ways in
which they could become more effective, both individually and collectively,
at building sustainable energy markets through exchange, collaboration,
and the pooling of resources with international peer agencies.
This includes ways to improve the cost-effectiveness of individual
programmes by partnering with other agencies on common goals and
challenges, as well as the potential to learn from the experience of peer
agencies in other countries, and to think about the possibility of replicating
successful approaches within their own regional contexts. The
report aims also to show the role that the SEF Alliance can play in making
these things possible.

The report is structured as follows. Section I gives an overview of the
SEF Alliance, including its envisioned purpose, structure, activities and
value. Section II offers a summary of the types of public finance mechanisms
that are relevant for the envisioned focus of the initiative. Section
III provides an overview of the stages of financing sustainable energy,
once again highlighting key and successful financing mechanisms, providing
a basis for considering possible areas for collaboration and exchange.
Section IV gives a more in-depth presentation of four agencies, their priorities
and programmes. References to innovative financing mechanisms
appear within the various contexts of sections 2, 3 and 4, reflecting the
important role that these play in public sector funding and to the SEF
Alliance.

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