Globally, fixed-income investment entities have trillions of dollars of available capital that they would love to put into renewable energy and efficiency projects. Enough to build a huge chunk of the new infrastructure needed to transition the world from fossil fuels to renewable energy. But the available projects are too small. Whether the investment is $50,000 or $500 million, it still requires about the same level of due diligence effort to evaluate: many billable hours paid to high-priced lawyers, accountants, researchers, and fund managers. That cost can be a killer if the investment is less than (roughly) $5 million dollars; there just isn't enough margin to justify it.
So the trick has been to find a way to "de-risk" (do the due diligence) and bundle cleantech and energy-efficiency investments, in order to be able to offer a suitably large investment to the fixed income market at an acceptably low transaction cost.
Enter financial innovation.
Financial Innovation Is the Next Big Thing in Clean Energy and Efficiency
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