Building R20 Pre-Investment Facilities
Fundraising for early project phases involves a number of heavy constraints, as traditional investors usually don’t get involved in projects where risks and returns are uncertain. The costs of early stage feasibility studies constitute a major hindrance to bankable project development, especially in developing and emerging countries.
In order to remedy this bottleneck, the R20 is working with its corporate partners to establish a number of Pre-Investment Facilities. The goal of these Pre-Investment Facilities is to enable sub-nationals to tackle their transition to a low-carbon economy in a strategic manner, shifting from philanthropic or grant-ridden pilot initiatives to economic projects and ultimately to a mature market. Such structures would address the financing of the preliminary studies needed by investors, opening the pipeline of investment-ready projects.
Swiss renewable energies PIF
LED street lighting PIF