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of the local government in improving their low carbon financing 2.2
capacity from additional funding source and capital management and
utilization efficiency. Based on the specific instrument category, Table
2.12 has summarized the feasibility of reform time of different fiscal and
financial instruments and specific financing effect (scale, technologies,
and structural effect). It may effectively increase the additional
funding sources for local government to facilitate low carbon economy
growth, capital management and utilization efficiency, and lever more
investment from the private sector by speeding up the implementation
of feasible policies within a short time and coordination of reform and
development of medium- and long-term feasible policies.
Table 2.12 Summary and Analysis of the Financing Effect and Feasibility of Financing
Instruments of the Local Government
Item Name Short/ Scale Technical Substitution
Long-term Effect Effect or Structural
Feasible
Effect
Fiscal Tax revenue Medium- and X
instrument Fees long-term (m–l X
term)
Short term
Transfer payment of Short and M–L X X
central government term
Public fund Short and m–l X X
direction term
Financial Carbon financial Long term X X
instrument instrument X X
Short and m–l
Traditional term X
instrument
innovation
International Fund (grant and Short and m–l X
source loans etc.) term XX
Risk management Short and M–L
Term
On finance, local government faces two aspects of challenges in
low carbon financing—imbalance between the fiscal revenue and
expenditure of central and local governments—the local government
faces much greater pressure in fiscal expenditure than the central
government; the relevant expenditure in low carbon economy sector
is mainly assumed by the local government which has the increasing
pressure on overall fiscal expenditure. Additional funding, improving
Chapter 2 Innovative Financing for Low Carbon Development 133
capacity from additional funding source and capital management and
utilization efficiency. Based on the specific instrument category, Table
2.12 has summarized the feasibility of reform time of different fiscal and
financial instruments and specific financing effect (scale, technologies,
and structural effect). It may effectively increase the additional
funding sources for local government to facilitate low carbon economy
growth, capital management and utilization efficiency, and lever more
investment from the private sector by speeding up the implementation
of feasible policies within a short time and coordination of reform and
development of medium- and long-term feasible policies.
Table 2.12 Summary and Analysis of the Financing Effect and Feasibility of Financing
Instruments of the Local Government
Item Name Short/ Scale Technical Substitution
Long-term Effect Effect or Structural
Feasible
Effect
Fiscal Tax revenue Medium- and X
instrument Fees long-term (m–l X
term)
Short term
Transfer payment of Short and M–L X X
central government term
Public fund Short and m–l X X
direction term
Financial Carbon financial Long term X X
instrument instrument X X
Short and m–l
Traditional term X
instrument
innovation
International Fund (grant and Short and m–l X
source loans etc.) term XX
Risk management Short and M–L
Term
On finance, local government faces two aspects of challenges in
low carbon financing—imbalance between the fiscal revenue and
expenditure of central and local governments—the local government
faces much greater pressure in fiscal expenditure than the central
government; the relevant expenditure in low carbon economy sector
is mainly assumed by the local government which has the increasing
pressure on overall fiscal expenditure. Additional funding, improving
Chapter 2 Innovative Financing for Low Carbon Development 133
