Public finance for green growth can be allocated directly from public budgets or through the establishment of national or sectoral fund structures or through financial intermediaries, including national development and commercial banks. This section describes in two parts the different approaches to sourcing and investing public funds in green growth:
• The direct use of public budgets to finance green growth (4.1)
• The use of dedicated funds and other public intermediaries to finance green growth (4.2).
Criteria suggested by Hilke and Ryan (2012) can be used in comparing different funding streams and selecting appropriate sources to finance energy efficiency policy for green growth. These include the level of stability and sustainability of funding, the administrative simplicity, the least cost of finance, and the ability to leverage private funds.
The case studies differ in their context and methods of funding; nonetheless several insights can be gleaned from the experiences with different kinds of public funds used in promoting green growth.