Loading

Renewable Energy Supply and Risk in Global Banking

Tonmoy Choudhury (King Fahd University of Petroleum and Minerals), Tapan Sarker (Griffith University), Muhammad Kamran (Edith Cowan University), Hadrian Djajadikerta (Curtin University), Fakhrul Hasan (Northumbria University), Mohammad Kabir Hassan (University of New Orleans), Sabri Boubaker (EM Normandie University)
This Policy Brief was first published in https://t20ind.org

Abstract

Financial and economic concerns are paramount for the international banking industry to continue supporting and investing in the global renewable energy supply system. The transition to renewable energy to achieve the mission of decarbonisation is capital-intensive and needs substantial bank involvement to evaluate the risk-return profiles of such projects. However, given the projects’ unpredictable cash flows, the inherent risk can expose the banking sector to significant disruptions during challenging times. Expectedly, banks are unlikely to lend until the fear of default has been eliminated. This policy brief examines the critical difficulties posed by renewable energy supply concerns that worry an increasingly interested banking industry. It also addresses the question of how the G20 might be able to reduce these risks more effectively. The brief recommends several fiscal policy instruments and principles that could encourage investment in the renewable energy sector by banks.

Authors

Tonmoy Choudhury (King Fahd University of Petroleum and Minerals), Tapan Sarker (Griffith University), Muhammad Kamran (Edith Cowan University), Hadrian Djajadikerta (Curtin University), Fakhrul Hasan (Northumbria University), Mohammad Kabir Hassan (University of New Orleans), Sabri Boubaker (EM Normandie University)

Latest Policy Briefs

Register for Updates

Would you like to receive updates on the Global Solutions Initiative, upcoming events, G7 and G20-related developments and the future of multilateralism? Then subscribe here!

1 You hereby agree that the personal data provided may be used for the purpose of updates on the Global Solutions Initiative by the Global Solutions Initiative Foundation gemeinnützige GmbH. Your consent is revocable at any time (by e-mail to contact@global-solutions-initiative.org or to the contact data given in the imprint). The update is sent in accordance with the privacy policy and to advertise the Global Solutions Initiative’s own products and services.