Derisking: The silent force shaping climate investment.
In 2013, the United Nations Development Programme (UNDP) outlined a framework for “Derisking Renewable Energy Investments” (DREI). The 156-page report presented a series of government-led interventions aimed at neutralizing the financial risks that often deter private investors from backing renewable projects. The concept? By “reducing, transferring, or compensating for risk,” policymakers could funnel private capital into climate solutions at scale.