23 September 2017 | Press Release
Overcoming risks and barriers to renewable energy investment
Scaling up renewables in line with its economic potential to meet energy security and climate objectives requires significantly larger investment than currently forecasted. Although public finance serves an important role, it is unlikely to increase above its current level of 15% and thus private finance will have to supply the lion’s share of new investment in renewables. However there are constraints that prevent the private sector from picking up many of the existing investment opportunities.
IRENA’s report “Unlocking Renewable Energy Investment: the Role of Risk Mitigation and Structured Finance,” finds that investment in renewable energy can be scaled up rapidly to accelerate the global energy transition if the right policy and financial instruments are used. Collective effort by policymakers and international financial institutions should focus on five main areas: