Government incentives and guarantees can then also be used – from support for research and development (R&D) - which affects operational efficiency- to investment incentives (capital grants, loan guarantees and low-interest rate loans), taxes (accelerated depreciation, tax credits, tax exemptions and rebates), and price-based policies at the output stage (which affect revenue streams - . feed-in tariffs), or policies which target the cost of investment in capital by hedging or mitigating risk. These incentives and mechanisms are not specific to pension fund investment but aim to improve the general policy framework for green investment.
