Financial innovation the next big thing in clean energy and efficiency
Monday, November 11, 2013
A new wave of innovation is sweeping the energy transition sector, promising to accelerate deployment and cut the costs of energy-efficiency measures, as well as wind and solar generation.
It isn’t a technological improvement, like cutting hardware and labor costs. It isn’t a policy mechanism like feed-in tariffs. It isn’t even a new business model, like selling storage services.
It’s financial innovation.
If the very words make you clutch your wallet and roll your eyes, I understand. After all, it was the innovation of mortgage-backed securities, credit default swaps and collateralized debt obligations that opened the door to an unprecedented level of financial recklessness and nearly brought down the global economy five years ago.
However, at the risk of incurring the wrath of the market gods: This time it’s different.
Source: SmartPlanet (link opens in a new window)
- Energy, Environment