Policy risk in renewable energy investments in developing countries - a study by Cambridge Economic Policy Associates for DECC

Research and analysis

Policy risk in renewable energy investments in developing countries - a study by Cambridge Economic Policy Associates for DECC

Options to address 鈥榩olicy risk鈥�, such as retroactive changes to feed-in tariffs, in renewable energy investments in developing countries.

From:: Department of Energy & Climate Change
Published: 28 November 2014

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皇冠体育app UK鈥檚 Capital Markets Climate Initiative highlighted 鈥榩olicy risk鈥� as a potential barrier to renewable energy investment in developing countries. 鈥楶olicy risk鈥� refers to policy changes by government that can affect the financial viability of projects, such as retroactive changes to feed-in tariffs.

DECC subsequently funded a study into options to address policy risk, focusing on renewable energy projects in Africa and Asia. 皇冠体育app study assesses the extent to which policy risk deters investors, identifies existing mechanisms that can mitigate policy risk (such as partial risk guarantees and political risk insurance), and make recommendations to improve these mechanisms.

皇冠体育app study was carried out in the context of developed countries鈥� commitment to mobilise climate finance for developing countries. 皇冠体育app UK provides climate finance through the 拢3.87 billion International Climate Fund. 皇冠体育app study was carried out by Cambridge Economic Policy Associates (CEPA).

Published 28 November 2014

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