Perceived barriers and policy solutions in clean energy infrastructure investment

Abstract

International political negotiations and national policy for climate change mitigation are increasingly focussed on the mobilisation and scale up of investments in clean energy infrastructure. This paper aims to develop the understanding of how institutional investors in the private sector perceive barriers to scaling up investment into clean energy infrastructure and what policy solutions to those barriers they advocate. This paper adds to existing scientific knowledge through a clear focus on private sector perceptions. Through the analysis of previous public statements from organisations and coalitions in the finance sector a number of investment barriers were identified. These initial barriers fed into a Delphi process. The outputs of the Delphi process were categorized into five sets of barriers and a number of policy solutions associated with investing into clean energy solutions. We conclude that there is a need for better engagement with the institutional investment community to ensure further effort on policy development that underpins investments at scale is effective and efficient.

The interplay between stakeholders, resources and capabilities in climate change strategy: converting barriers into cooperation

“…Clients are in a particularly strong position to motivate organizations to adopt green practices (Chu & Schroeder, ), but can also act as a barrier by not recognizing these practices (Ng et al, ). Suppliers may stand out due to their ability or inability to accurately measure CO 2 emissions from their operations (Garbuzova & Madlener, ), provide carbon efficient technologies (Ng et al, ), adapt to different types of production processes (Eisenack et al, ; Jones, ) or even provide them (Liu, , ).…”

Climate finance and disclosure for institutional investors: why transparency is not enough

“…Financial actors will thus select and invest in low-carbon projects among other investment alternatives, once a profit opportunity in terms of returns and risk expectations is reached or created. There is a wide consensus in the literature that the lack of supportive policy frameworks, incentives and market-based instruments are the main barriers to attract private capitals for the low-carbon transition Granoff et al 2016;Fabian 2015;Jones 2015;Nelson and Pierpont 2013;Kaminker and Stewart 2012;Della Croce et al 2011). Indeed, the appropriate investment policy framework and incentives are crucial in building confidence in investors' expected returns and determining the investments' profitability (Polzin et al 2019).…”

Influences on energy supply infrastructure: A comparison of different theoretical perspectives

“…This is what has led to a lot of public private partnerships in (energy) infrastructure supply [130]. However, challenges remain in providing stable long term policy frameworks required by the private sector [131]. This is also the reason why development finance institutions are not able to release their capital as much as they want, because, among other reasons, they are funded by governments, and their available funds are limited [132].…”