A call to action from the World Energy Council in partnership with Swiss Re Corporate Solutions and Marsh & McLennan Companies, for collaboration to ensure secure and reliable energy supply, as the backbone of the global economy.
Financing energy infrastructure resilience comes at a cost – whether resilience is factored in from the beginning of a project or later. To increase the bankability of a project and reduce costs, this report suggests financial models should incorporate the risks of extreme weather and changing climate patterns right from the start of project planning. Given the already huge amount of investment needed over the next 20 years, resilience is a prerequisite to unlock funds from public and private investors.
To build resilience, all energy stakeholders must understand the impact of extreme weather events on energy infrastructure. This means that energy companies and project developers, banks, insurance companies, long-term investors, governments, and regulators must collaborate.
Better coordination will enable innovation, technological standards, appropriate financial and risk transfer instruments, and a regulatory framework to provide the necessary guidance for resilience and market regulation.
The project team suggests that the energy industry and financing sector should work with regulators and governments to adapt regulation to make it more viable for a greater variety of long-term investors, in particular large institutional investors such as insurers, reinsurers and pension funds to invest in energy assets.
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