Finance


Stage


Company conception


Prototype testing


Demonstrator project


Further development


Proven technology


Public grant & production subsidy


Funding


Public grant & production subsidy


Initial VC investment


Public funding R&D grants


Year 1 Year 10


Secondary VC investment


Figure 4: Private financing mechanisms to address financing gaps Source: UNEP SEFI


embryonic. As stated earlier in this chapter, over 900 investment organisations managing more than US$ 25 trillion of assets have now signed the PRI. The results of the PRI’s annual assessment survey shows that US$ 6.7


Stage 1 R&D


Stage 2 Demonstration


Stage 3 Deployment


trillion of the PRI signatories actively managed assets, accounting impressively for some 51 per cent of such assets managed by PRI supporters, were subject to ESG integration in 2009. However, this represents only


Stage 4 Diffusion


Stage 5 Commercial maturity


Valley of death


High perceived risks


Lack of project development capacities and capital


R&D support Angel investors


Venture capital


Debt-equity gap


Grants Incubators


Public/private equity funds


Public/private VC funds


Soft loans Loan facilities Credit lines Guarantees


Equity Mezzanine Debt Insurance Carbon


Public finance mechanisms


Commercial financing mechanism


Figure 5: Development and investment phases of renewable energy technology Source: UNEP SEFI (2010)


607


Larger projects financing package


FINANCING


GAPS


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