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