Expansion of the investor base for the energy transition

Despite the emergence of the green bond market, the Energy Service Company (ESCO) model and green investment banks, the opportunities which the world's capital markets present to increase the pool of potential investors and reduce project financing costs for renewable, energy efficient and low...

Full description

Saved in:
Bibliographic Details
Published in:Energy policy 2019-06, Vol.129, p.1240-1244
Main Authors: McInerney, Celine, Bunn, Derek W.
Format: Article
Language:English
Subjects:
Banking
Bond markets
Bonds
Capital markets
Clean energy
Crowdfunding
Energy
Energy costs
Energy efficiency
Energy policy
Energy transition
Financing
Green bonds
Green investment banks
Innovations
International finance
Investment
Investments
Investors
Leverage
Policy making
Renewable energy
Returns
Yieldco
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Despite the emergence of the green bond market, the Energy Service Company (ESCO) model and green investment banks, the opportunities which the world's capital markets present to increase the pool of potential investors and reduce project financing costs for renewable, energy efficient and low carbon assets remain under-exploited. This has been a persistent concern for policy-makers. We review the appeal of this sector to different classes of investor and assess the successes and failures of several innovative products including securitisations, yieldcos, green bonds, green investment banks and crowdfunding. We analyse the experiences with these products and suggest that policy needs to recognise how fiscal initiatives can leverage their inherent appeal. •Significant finance is required for low carbon transition.•Opportunity for global equity and debt capital markets to provide capital has not been exploited.•Innovative financing mechanisms are required to attract capital market funds.•Paper critiques innovative finance products and suggests policy interventions to leverage these.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2019.03.035