De-Risking Tools

De-risking tools include policy instruments and finance mechanisms that help reduce, transfer or compensate risks for investors. They aim to achieve a risk-return profile that catalyzes investments at scale.

The vast majority of EMDEs lie outside of the fiduciary and regulatory obligations of private sector investors, with 73% rated as B+ or lower by leading credit rating agencies such as Standard & Poor, Moody's and DBRS. De-risking strategies are an absolute must to crowd in investment for clean energy in these countries. The Playbook references de-risking tools across six strategies:

De-risking tools include policy instruments and finance mechanisms that help reduce, transfer or compensate risks for investors. They aim to achieve a risk-return profile that catalyzes investments at scale.

This Playbook of Solutions was assembled by the Network to Mobilize Clean Energy Investment in EMDEs