Unlocking a Renewable Energy Future: How Government Action Can Drive Private Investment

Abstract

A renewable energy future is within our grasp: the technology is now widely available and cost-effective in most places around the world. But the current rates of deployment remain well below what is required to avert the worst impacts of climate change. The private sector is poised to invest billions of dollars to massively speed up, scale and support the energy transition. However, many investors, particularly in the private sector, are deterred by some of the risks related to renewable energy investments. As the energy transition is likely to be financed largely by the private sector, governments must work with the private sector to remove barriers and incentivize investment in renewable energy. This working paper, produced in partnership with Ørsted, focuses on the challenges and solutions to scaling investment in renewable energy generation and provides actionable policy solutions to unlock the private sector investment needed to support the energy transition.