Financing is the process of providing funds for projects or organisations, with the primary purpose being to ensure that enough money is in place to complete a project. To increase the flow of funds into net zero projects, we need to rethink our approach to project financing and develop projects in a way that will attract investment capital.
Funds for net zero projects can come from many sources, including the private sector, local and central government, and foundations or other concessional funding. Utilising capital from both public and private sources is known as ‘blending’ – an approach which can increase the number or type of projects undertaken. Funds can be provided via different instruments including equity, debt and grants. This section provides background information on types and sources of funds, the funding process and the financial assessment of projects.