OIES Podcast – Green energy finance in the developing world
In this latest OIES podcast James Henderson talks to Robin Baker and Philippe Benoit about their upcoming paper “How Project Finance Can Advance the Clean Energy Transition in Developing Countries.” The authors discuss how the huge investment needed in developing countries to meet climate change targets is becoming a critical issue, and that although significant funds are available for energy investment it is difficult to direct them towards renewable projects in countries with high risk profiles. They suggest that the project financing model can help to allocate risks appropriately between the key players and can thus facilitate higher levels of debt finance than might otherwise have been attainable. They discuss how this can be achieved in practice, using specific examples, and also look at the role of multilateral agencies such as the World Bank. Finally, they also briefly touch on the role of green bonds as another alternative source of finance.