Investment in clean energy needs to be mobilised at pace and at scale to contribute to mitigating climate change and achieve the transition to a low-carbon energy system. Given current strains on public finance, scaling up investment in clean energy will require the mobilisation of private investment from both domestic and international sources and policies that provide a supportive investment environment.

Largely driven by government incentives, new investment in clean energy – and especially in solar photovoltaic (PV) and wind energy – has increased significantly over the past decade. However, clean energy projects remain seriously constrained by specific barriers and governments often face policy trade-offs when designing investment incentives and policies to promote renewable energy.

To assist governments, the OECD is releasing the report “Overcoming Barriers to International Investment in Clean Energy” that takes stock of policy restrictions to international investment in solar PV and wind energy, and assesses their impacts across the value chains. The report will highlight the rise of hidden protectionism in clean energy in OECD and emerging economies in the post-crisis recovery context, with the increasing use of local-content requirements (LCRs).

In a context of global value chains, the report will provide evidence of the negative impact that LCRs have on international investment in solar PV and wind energy, as they increase the cost of inputs for downstream segments of the value chain like renewable energy-based electricity generation. The report will provide policy makers with evidence-based analysis to guide their decisions in designing clean energy support policies.

This project is jointly undertaken by the OECD Investment and Environment Policy Committees, with contributions from other OECD policy communities.

MEETINGS

OECD roundtable consultation on achieving a level playing field for international investment in solar and wind energy - 6 December 2013
>> read summary report (pdf)

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LINKS

Investment for green growth

Financing climate change action

Transition to a Low-carbon Economy: Public Goals and Corporate Practices

OECD work on climate change

OECD work on green growth

2014 OECD Investor Survey on “Achieving a level playing field for international investment in green energy”