Credit-wary investors put green projects in red

Green projects, which have become the buzzword in the past few years, are not only currently struggling for financing, the sense of urgency in pursuing them has also been affected considerably.

Due to the distressed financial market conditions, the flow of equity and debt investment into renewable energy projects has been disrupted since the fourth quarter of 2008.

In the US, major changes in federal legislation have also had add-on effects on renewable energy financing.

According to US Department of Energy’s National Renewable Energy Laboratory (NREL), tax credit incentives that had been a principal driver of investment in renewable energy projects, have become largely ineffective in the current economic climate.

Emirates Business 24/7