Financing clean energy projects remains one of the most significant challenges in the global energy transition. While capital is available, bankability—the ability to meet investor risk-reward requirements—continues to be a key hurdle.
This was the focus of an insightful panel discussion at CERAWeek by S&P Global on 11 March, where industry leaders explored the barriers hindering investment in clean energy and the strategies required to overcome them.
The Challenge of Bankability in Clean Energy
Moderator Ernest Moniz, CEO of EFI Foundation, set the stage by highlighting the paradox of clean energy financing. “Frankly, today we’re not short of capital for many investments,” he said.
“But bankability—satisfying the risk-reward requirements of different investors—remains a challenge. We need to bridge gaps between financial institutions, policymakers, and project developers to unlock capital at scale.”
H.E. Majid Al Suwaidi, CEO of Alterra, outlined how their newly launched $30 billion catalytic investment fund is tackling these challenges head-on. “We have a unique structure: $25 billion in acceleration capital, which can be deployed globally, and $5 billion dedicated to the Global South. Our aim is to mobilise $250 billion by leveraging these funds strategically,” he explained.
“It’s not just about financing renewable energy—our scope includes industrial decarbonisation, climate technology, and adaptation projects.”
The Role of Corporates in Driving Investment
Marisa Buchanan, Senior Vice President at bp, provided a corporate perspective on clean energy financing. “One of the biggest misconceptions is that there’s a shortage of capital,” she noted.
“The real question is: what are the barriers preventing more capital from flowing into emerging clean energy technologies? Bankability isn’t just about capital—it’s about understanding investor expectations, risk-return profiles, and the fundamental economic viability of projects.”
Drawing from her experience at JP Morgan Chase, Buchanan stressed the importance of aligning financial expectations with real-world energy demands. “There’s been massive investment—about $9 trillion since 2010—but the challenge lies in scaling solutions for hard-to-abate sectors like steel, cement, and heavy industry. Investors need confidence in returns before deploying large-scale capital.”
Managing Risk and Policy Uncertainty
With evolving trade and policy landscapes, investors are grappling with uncertainty. “Everywhere we look—whether in the US, Europe, or emerging markets—there are questions around trade barriers and policy shifts,” said Moniz. “How do these uncertainties impact bankability?”
Al Suwaidi addressed this by emphasising Alterra’s long-term investment approach:
“As a global fund, we face different risks in different regions—Brazil, India, the US, or Europe. Our job is to assess what we can control, build contingency plans, and invest in technologies that have long-term viability. Policy uncertainty exists, but our investments focus on projects that will be bankable regardless of shifting regulatory frameworks.”
Buchanan echoed this sentiment, adding that policy incentives play a critical role. “Incentives help close the gap between what customers can pay and what clean energy alternatives cost. But uncertainty around long-term incentives can disrupt investor confidence. Stability is key to unlocking large-scale capital.”
Investing in the Global South: Opportunity or Risk?
The discussion turned to investing in developing markets, where energy demand is projected to grow significantly. “By 2030, the world’s population will reach 9 billion, with enormous energy demand growth in the Global South,” Al Suwaidi noted. “This presents a major investment opportunity, but risk perception remains a barrier.”
He pointed to the UAE’s long history of investing in Africa and Central Asia as a model. “We see a mismatch between perceived risk and actual investment opportunities. The UAE has been investing in these markets for years. Our strategy is to lead by example—invest in commercial projects that demonstrate profitability and scalability, and bring in private sector partners.”
Buchanan agreed that private capital must play a larger role in financing clean energy for the Global South. “It’s about optimising the balance between affordability, reliability, and clean technology. Investors need clear signals that these projects are financially viable.”
The panel showcased the need for innovative financing structures, stronger policy frameworks, and deeper collaboration between investors, corporations, and policymakers to enhance the bankability of clean energy projects.
As Buchanan summarised, “There’s no shortage of capital—what we need is the right risk framework, clear policy signals, and scalable business models to unlock investment at the pace required for the energy transition.”
With initiatives like Alterra’s catalytic fund and strategic corporate investments, the path to making clean energy bankable is becoming clearer—but much work remains to be done to ensure that capital flows efficiently into the technologies and markets that need it most.
Speakers:
- Ernest Moniz, Founder & CEO, EFI Foundation
- Marisa Buchanan, Senior Vice President, Strategic Corporates & Partnerships, bp
- Matt Harris, Founding Partner & Senior Managing Director, BlackRock (not in attendance, but referenced)
- H.E. Majid Al Suwaidi, CEO, Alterra