The EIC’s two-day Bankable Energies conference wrapped up here in London this afternoon. We brought together a powerhouse of senior policymakers from the UK and EU, energy supply chain leaders, executives, and financiers. The goal? To figure out how energy projects—especially in cleantech—can become bankable and help us hit imminent and long-term climate targets.
As the conference wrapped up, the message was crystal clear: achieving bankability of energy projects is going to take a united effort from everyone involved. Yes, the finance is there, but the energy transition demands stable policies, streamlined processes, shared risk, and a collaborative spirit to push projects forward. The past two days of discussions have set the stage for some actionable steps to ensure clean energy projects aren’t just viable, but scalable too—paving the way for a sustainable and resilient energy future.
A deeper understanding of what make projects bankable is certainly key. Hint: make them commercially viable and that there’s demand, if not actual customers, for the product – read our post from yesterday for more on what makes an energy project bankable as shared by a major bank: https://www.the-eic.com/MediaCentre/Detail/articleId/2114.
Campbell Kier, President of the EIC, in his concluding remarks, pointed out that while private finance is absolutely critical (covering about two-thirds of climate financing needs, as suggested by the UK’s Climate Change Committee), the supply chain is ready to step up to the energy transition challenge.
But, he stressed, we need clear and stable government policies, simpler approval processes to speed things up, and more sector specialists to fill workforce gaps, especially in areas like nuclear. “We need to meet the bankability criteria set by banks and make projects commercially attractive to the private sector,” he said, driving home the importance of creating demand and ensuring projects are viable.
Joanna Drake, Deputy Director-General of the European Commission, said in her opening keynote the UK and EU have many shared priorities, including energy infrastructure and climate action. Both are aligned on 2050 net-zero targets, carbon capture ambitions, and hydrogen market development, she said. “There’s huge potential for collaboration,” she added, pointing to initiatives like Horizon Europe, which backs green energy projects, including hydrogen and carbon capture, utilization, and storage (CCUS).
The conference dug into multiple themes but here are some takeaways to leave you with:
- Policy Stability and Predictability: This one came up again and again. Clear, long-term policies that can weather political changes are a must. Delegates agreed that predictable policies and governments plans and targets are essential to attract private investment and keep projects viable. Without stable policies, suppliers and financiers are hesitant to take on risks, especially for untested technologies.
- Simplified Approval Processes: Speakers were all about cutting through the red tape. Streamlining regulatory and approval processes is key to speeding up project timelines. Panalists pointed to delays in permitting and approvals as major barriers to bankability, while also calling for governments to reduce bureaucratic hurdles and offer clearer guidance.
- Risk Sharing and Collaboration: The energy transition needs a team effort when it comes to risk, particularly for emerging tech like hydrogen and CCUS. Some delegates pointed to the fact that contractors and suppliers are becoming more risk-averse, so it’s crucial for all stakeholders—governments, financiers, and the private sector—to work together and share the risk more fairly.
- Financing Structures and Innovation: The discussions here were all about finding new ways to bridge the gap between project costs and revenue. Tools like Contracts for Difference (CfDs), standby debt, and reserve accounts were highlighted as effective ways to mitigate risk and boost bankability. There was even talk of extending the duration of CfDs to match debt lifespans as a way to improve project viability.
- The Supply Chain Needs Steady Supply of Projects: The conference drove home the point that the supply chain is ready and eager to support and stand behind net zero targets. But speakers noted that that while the supply chain is ready to scale up, it needs clear signals—like contracts and steady project pipelines—to build capacity and keep the momentum going. If that doesn’t happen, even capabilities might be lost as companies deploy their resources to other sectors or, worse, retire them altogether. Training and workforce development were also flagged as critical, especially for specialised sectors like nuclear.