Policy Toolbox
Unlocking private finance for the green transition
A systemic approach is essential to overcome investment barriers.
A successful green transition requires the mobilisation and redirection of private investment. Public policy often focuses on financial regulation to achieve this.
Research and stakeholder interviews (see methodology) tell us that this is necessary but not sufficient:
- Instead of focusing on capital availability only, policies also need to address other explicit business case barriers like a lack of demand, and implementation bottlenecks like the availability of skilled labour.
- In addition to these explicit investment barriers, deeper-rooted semi-explicit and implicit barriers need to be addressed to overcome issues like short-term thinking or risk perceptions (see iceberg).
A systemic approach that takes into account all explicit, semi-explicit and implicit investment barriers is needed.
