Financing Transitions
report
This report highlights four critical barriers to scaling and accelerating private investment in de the green transition towards a climate-neutral economy: Risk/ Reward Imbalance, Policy and Regulatory Risk, Culture and Governance. Early-stage transformative ventures often exhibit high uncertainty and unclear revenue prospects, creating a (sometimes perceived) risk/reward imbalance relative to other potential investment opportunities. Policy and Regulatory risk stemming from shifting regulations, or uncertain long-term government commitments, can also investor confidence. Cultural factors within the financial sector, including risk aversion and a preference for incremental innovation, reinforce a conservative investment approach. Finally Governance constraints such as fiduciary duties, strict investment mandates, and limited standardisation of Environmental Societal and Governance frameworks and impact metrics limit institutional investors from engaging with high-risk climate-neutral transitions.
TNO Identifier
1014551
Publisher
TNO
Collation
64 p.