A sustainable reduction in the cost of capital for renewable energy projects will take a multi-pronged approach, which could herald a range of broader changes to institutional investor/asset manager relations across a range of timescales. The most effective catalyst will depend on the market.

In the past few decades, China has experienced rapid growth in coal power, leading to the country’s increased CO2 emissions, which reached 8.25 billion tons in 2012 (IEA).