Green Investing 2011
Green Investing 2011: Reducing the Cost of Financing
The World Economic Forum, in collaboration with Bloomberg New Energy Finance, has created a series of reports as part of its Green Investing project. This year's report, Green Investing 2011: Reducing the Cost of Financing, builds on two previous reports, Green Investing: Towards a Clean Energy Infrastructure and Green Investing 2010: Policy Mechanisms to Bridge the Financing Gap. The new report explores recent investment trends in the sector and examines which national policies are proving most efficient in spurring clean energy deployment.
Given the long-term importance of growing the clean energy sector to help address climate change and provide alternatives to traditional sources of energy, policy-makers need to find ways to make clean energy available at the lowest possible cost. The report uses the Levelized Cost of Energy (LCOE) to facilitate understanding of the underlying cost of generating clean energy. As the LCOE takes into account project costs and financial assumptions over the lifetime of a project, the authors of the report were able to examine which policies have proven more or less effective in reducing generation costs.