"Financing for a zero-carbon power sector in Europe": new report from ECF, Climate Bonds & Co.

We've been working - with a bunch of others - on a project for the European Climate Foundation around finance for a transition to a low-carbon Europe. The report of that project has just been released. http://goo.gl/0PPYV

If you want a short-cut summary go straight to the European Energy Review article about the report that came out yesterday. http://goo.gl/clBuL

Some of the findings:

  • European energy companies will not be able to finance the transition to a decarbonised power system on their own. They will need the help of institutional investors. But there has been too much emphasis on pushing risk on to investors. Governments have to lower policy risk associated with low-carbon energy sources.
  • An "investment-grade policy framework" has to look beyond energy and climate policy.
  • Better dialogue is needed between policy makers and the financial community.
  • Investment-grade climate-related bonds should be explored.

The report follows on from the earlier, highly-regarded, "Roadmap 2050: A practical guide to a prosperous, low-carbon Europe".

The report was funded by the European Climate Foundation (ECF), who were also a participant in research. The project team also included the Climate Bonds Initiative, the Institutional Investor Group on Climate Change, Mark Woodall (ex-CEO Climate Change Capital), Kirsty Hamilton (Chatham House), E3G, the Carbon Disclosure Project, Climate Strategy & Partners and the Ecofin Research Foundation.