Financial mechanisms for energy efficiency

Financing the upfront costs of energy efficiency and renewable energy projects in buildings can be a significant barrier to the expansion of sustainable, low carbon buildings, despite this being a low-cost option on the carbon abatement curve. Systematic literature on alternative financial mechanisms has proved to be scarce. However, a number of studies do provide taxonomies of mechanisms and their key design features, barrier analysis, financial mechanism success factors, and considerations on how finance mechanisms can integrate with different business models and government policy environments. In the absence of comprehensive reviews, this literature can still provide guidance and options to policy makers and finance industry practitioners.