What concerns low-carbon energy provisions?

  • One of the major concerns is to obtain finance which is sufficient for investments to steer towards RE as per Mazzucatoa ans Semieniuk.
  • Another concern is with the limitation of the requirements of Basel capital for lending by financial institutions as RE projects are considered riskier by the banks, and they are reluctant towards finance.
  • Bank resources coming from deposits are also limited to short term to mid-term.
  • As per, the long-term investment in green projects become a mismatch in long-term finance thereby relying on bank finance is not a solution.
  • Sectors and businesses need to be allocated safe for lending from banks.

Source:- Handbook of Green Finance by Jeffrey D. Sachs et al.

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