Clean Energy Investment

The report argues that while public funds like the $10 billion Clean Technology Fund are necessary, they are insufficient compared to the $22 trillion needed for energy investment by 2030. It identifies domestic policy barriers—such as lack of clear energy signals, monopoly structures, and subsidies for conventional energy—as primary obstacles that make developing countries unattractive to investors. Internationally, the document notes that the 'spaghetti bowl' of international investment agreements (IIAs) may chill climate regulations through risks of indirect expropriation claims and 'fair and equitable treatment' obligations. It recommends national diagnostic studies to identify specific barriers and suggests that improving domestic investment environments is a critical, yet overlooked, mechanism for facilitating technology transfer.

• There is a massive gap between current public funding and the investment required for energy in developing countries. The IEA estimates a need for $22 trillion in new energy investment between 2005 and 2030, while current initiatives like the $10 billion Clean Technology Fund represent less than 1% of these needs.
• Private sector investment in clean energy is growing rapidly but remains insufficient. Global private investment rose from $30 billion in 2004 to $148 billion in 2008, yet this is still significantly lower than the annual average required to meet IEA projections.
• Domestic policy barriers in developing countries frequently deter clean energy investment. These include a lack of clear future energy policy signals, the presence of monopoly structures, a lack of feed-in tariffs for independent producers, and existing subsidies for conventional energy sources.
• International Investment Agreements (IIAs) can create legal risks that discourage governments from implementing climate-related regulations. Specifically, policies that limit GHG emissions or require retrofits of existing installations may be challenged as 'indirect expropriation' or violations of 'fair and equitable treatment' obligations.
• Improving the domestic investment environment is identified as one of the most effective policy options for fostering technology transfer, yet it has received disproportionately little attention compared to other clean energy initiatives.

APA

Cosbey, A., Ellis, J., Malik, M., & Mann, H. (2008). Clean Energy Investment. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/cei_synthesis_sum.pdf

Chicago

Cosbey, Aaron, Jennifer Ellis, Mahnaz Malik, and Howard Mann. Clean Energy Investment. International Institute for Sustainable Development, 2008. https://www.iisd.org/system/files/publications/cei_synthesis_sum.pdf.

Wikipedia

{{cite report |last1=Cosbey |first1=Aaron |last2=Ellis |first2=Jennifer |last3=Malik |first3=Mahnaz |last4=Mann |first4=Howard |title=Clean Energy Investment |publisher=International Institute for Sustainable Development |date=July 2008 |url=https://www.iisd.org/system/files/publications/cei_synthesis_sum.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cosbey2008clean, author = {Cosbey, Aaron and Ellis, Jennifer and Malik, Mahnaz and Mann, Howard}, title = {{Clean Energy Investment}}, institution = {International Institute for Sustainable Development}, year = {2008}, month = jul, url = {https://www.iisd.org/system/files/publications/cei_synthesis_sum.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }