An Assessment of the Impact of Policy on the Financing of Clean Energy

The document describes a project to assess the impact of policy on clean energy financing, focusing on whether policies encourage a sustainable and cost-effective mix of investments. It highlights the role of risk allocation and the importance of project financing eligibility in determining the overall cost of energy projects. The project aims to analyze debt, equity, venture capital, and mezzanine finance across different technology maturity levels and global regions.

• The global economy requires significant investment in energy infrastructure over the next 25 years, with $30 trillion total and $6 trillion specifically for renewable electricity and biofuels to meet current commitments.
• While clean energy investment grew more than four-fold between 2004 and 2008, current investment patterns favor proven technologies in established regulatory environments, potentially excluding expensive or risky technologies that could be part of a long-term cost-effective industry.
• Policy plays a critical role in determining the cost of financing by allocating risks between taxpayers, energy consumers, and investors; for example, guaranteed offtake prices for renewable generation shift risks to consumers or taxpayers.
• Eligibility for project financing—where debt is procured based on the project's financial strength without recourse to parent company assets—provides a significant advantage and influences the overall financing cost and competitiveness of a project.

APA

Nelson, D. (2011). An Assessment of the Impact of Policy on the Financing of Clean Energy. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2011/05/Impact-of-Policy-on-Financing-Clean-Energy1.pdf

Chicago

Nelson, David. An Assessment of the Impact of Policy on the Financing of Clean Energy. Climate Policy Initiative, 2011. https://www.climatepolicyinitiative.org/wp-content/uploads/2011/05/Impact-of-Policy-on-Financing-Clean-Energy1.pdf.

Wikipedia

{{cite report |last1=Nelson |first1=David |title=An Assessment of the Impact of Policy on the Financing of Clean Energy |publisher=Climate Policy Initiative |date=27 May 2011 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2011/05/Impact-of-Policy-on-Financing-Clean-Energy1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nelson2011assessment, author = {Nelson, David}, title = {{An Assessment of the Impact of Policy on the Financing of Clean Energy}}, institution = {Climate Policy Initiative}, year = {2011}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2011/05/Impact-of-Policy-on-Financing-Clean-Energy1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }