What's the private sector up to on "climate finance" and what are the issues with that?

Climate policymakers are now exploring ways to encourage private sector finance for climate action in developing countries, i.e. investment in projects to reduce greenhouse gas emissions and build capacity to adapt to climate change impacts. 

Here's a paper I wrote for the UK Bond Development and Environment Group on these issues. It examines the evidence from existing channelling of development and climate finance via private sector instruments to identify the probable risks and benefits of such approaches. The particular aim of this paper is to stimulate debate within the UK context.

Download here or here.