Clean Energy Finance Workshop: Green Bonds & Sukuk and Crowdfunding Cleantech
One of the largest barriers to clean energy deployment is access to capital and investment. Governments throughout the GCC and MENA region are setting ambitious clean energy and energy efficiency targets. Compounding the difficulty of achieving these targets, the population of the GCC is expected to grow to over 53 million by 2020, a 30% increase over the population in 2000, making the GCC one of the fastest growing regions in the world. Such a population growth trajectory will create an unprecedented rise in demand for energy, water, transport, urban development and infrastructure. Substantial amounts of investment will be required in order to finance the clean energy and energy efficiency projects necessary to meet the needs of the future population.
This workshop will focus on two platforms for financing clean energy projects:
Green bonds are not only becoming an attractive financing option, but are also attracting project developers to raise capital for their projects, assets and other activities to showcase their responsible approach toward business. Given the growth of the Islamic finance industry, a green Sukuk that funds these projects in compliance with Shariah law is the obvious next step.
Crowdfunding has provided a new way to eliminate third parties, and provide energy and monetary benefits to investors. The benefits of crowdfunding aren’t restricted only to developed economies; in some ways, they may be even more important for countries without well-developed financial infrastructures. Now that renewable energy technology is becoming viable and cost-effective, firms in the industry are turning to crowdsourcing as a means of attracting capital.