This paper discusses the challenges that must be addressed to support the financing of novel technologies needed to achieve the United Kingdom's stated goal of achieving net zero emissions by 2050. It identifies practical steps that stakeholders providing investment funding, as well as technology developers can take to drive net zero outcomes. The paper represents the first time such a diverse group of independent industry professionals have come together to explore financing challenges associated with the Energy Transition.
Apart from the diversity of the authors backgrounds and expertise, a survey was conducted of 121 respondents from across the energy landscape while preparing this paper. The survey was launched to an international audience, however, respondents were largely from the oil and gas and renewable industries from both the UK and Europe.
The paper seeks to align investors in technological developments and will enable them to more accurately value the risks of novel technology deployment. This requires developers to present their solutions in a manner that investors can understand, and which enables financial risk to be more accurately aligned with the Technology Readiness Level (TRL) approach. Another critical element is making sure the rush to develop newer technologies to achieve Net Zero takes into account the right Environmental, Social, and Governance (ESG) considerations. The ultimate goal of the paper is to begin a dialogue that will eventually lead to a shift in the way that private and public institutions think about financing nascent technologies.