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The Interchange: Recharged cover image

Innovative financing is needed to mobilise clean energy capital in developing countries. What could it look like?

The Interchange: Recharged

NOTE

Reassess Risk to Unlock Clean Energy Investment

To mobilize private sector capital for clean, sustainable energy in developing regions, it is crucial to address the flawed measurements of risk currently employed by rating agencies. These measurements create a perception of high risk that deters investment, despite many failed projects occurring outside of developing economies. A streamlined process for obtaining financial guarantees will enhance capital providers' comfort levels, but a broader reassessment of how risk is evaluated in these regions is essential to increase investment and access to clean energy.

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