Finance and Justice in Low-Carbon Energy Transitions

Stephen Hall; Katy E. Roelich; Mark E. Davis; Lars Holstenkamp

doi:10.1016/j.apenergy.2018.04.007

Finance and Justice in Low-Carbon Energy Transitions

Stephen Hall
, Katy E. Roelich
, Mark E. Davis
, Lars Holstenkamp

University of Leeds

Research output: Journal contributions › Journal articles › Research › peer-review

66 Citations (Scopus)

155 Downloads (Pure)

Abstract

Up to $61trillion of power systems investment is needed to fulfil the Paris Agreement. The mobilisation of so much capital is a huge challenge. As such, energy policy is changing to meet the needs of commercial finance. However, very little has been done to question the justice implications of this capital mobilisation, and what alternatives there are to commercially-oriented finance for low carbon energy systems. This paper uses a comparative analysis of two developed economies to explore how ‘alternative’ forms of finance operate in each nation’s energy investment landscape. We find alternative finance is often set in opposition to commercial capital. Alternative finance in both nations is motivated by financial justice outcomes that are poorly understood in current energy policy. Our findings suggest that 6 principles are key to ‘just’ energy finance: affordability, good governance, due process, intra-generational equity, spatial equity, and financial resilience. Energy policy that seeks to mobilise capital, should take account of all six principles.

Translated title of the contribution	Finanzierung und Gerechtigkeit im Rahmen von Energietransformationen hin zu niedrigen Emissionen
Original language	English
Journal	Applied Energy
Volume	222
Issue number	July 2018
Pages (from-to)	772-780
Number of pages	9
ISSN	0306-2619
DOIs	https://doi.org/10.1016/j.apenergy.2018.04.007
Publication status	Published - 15.07.2018

Bibliographical note

Funding Information:
Part of this work was supported by the Engineering and Physical Sciences Research Council under grant Ref: EP/N029488/1. This work was also supported by a grant issued by Friends Provident Foundation through their ‘Building Resilient Economies’ programme. http://www.friendsprovidentfoundation.org/grants/projects/financial-innovation-today-towards-economic-resilience-the-bauman-institute-part-of-the-university-of-leeds/ . The authors would like to thank the reviewers for their helpful comments which illuminated several lines of enquiry which substantially strengthened this work.

Publisher Copyright:
© 2018

Research areas and keywords

Management studies
Energy research

ASJC Scopus Subject Areas

Mechanical Engineering
Energy(all)
Renewable Energy, Sustainability and the Environment
Building and Construction
Management, Monitoring, Policy and Law

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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Cite this

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title = "Finance and Justice in Low-Carbon Energy Transitions",

abstract = "Up to \$61trillion of power systems investment is needed to fulfil the Paris Agreement. The mobilisation of so much capital is a huge challenge. As such, energy policy is changing to meet the needs of commercial finance. However, very little has been done to question the justice implications of this capital mobilisation, and what alternatives there are to commercially-oriented finance for low carbon energy systems. This paper uses a comparative analysis of two developed economies to explore how {\textquoteleft}alternative{\textquoteright} forms of finance operate in each nation{\textquoteright}s energy investment landscape. We find alternative finance is often set in opposition to commercial capital. Alternative finance in both nations is motivated by financial justice outcomes that are poorly understood in current energy policy. Our findings suggest that 6 principles are key to {\textquoteleft}just{\textquoteright} energy finance: affordability, good governance, due process, intra-generational equity, spatial equity, and financial resilience. Energy policy that seeks to mobilise capital, should take account of all six principles.",

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author = "Stephen Hall and Roelich, \{Katy E.\} and Davis, \{Mark E.\} and Lars Holstenkamp",

note = "Funding Information: Part of this work was supported by the Engineering and Physical Sciences Research Council under grant Ref: EP/N029488/1. This work was also supported by a grant issued by Friends Provident Foundation through their {\textquoteleft}Building Resilient Economies{\textquoteright} programme. http://www.friendsprovidentfoundation.org/grants/projects/financial-innovation-today-towards-economic-resilience-the-bauman-institute-part-of-the-university-of-leeds/ . The authors would like to thank the reviewers for their helpful comments which illuminated several lines of enquiry which substantially strengthened this work. Publisher Copyright: {\textcopyright} 2018",

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N2 - Up to $61trillion of power systems investment is needed to fulfil the Paris Agreement. The mobilisation of so much capital is a huge challenge. As such, energy policy is changing to meet the needs of commercial finance. However, very little has been done to question the justice implications of this capital mobilisation, and what alternatives there are to commercially-oriented finance for low carbon energy systems. This paper uses a comparative analysis of two developed economies to explore how ‘alternative’ forms of finance operate in each nation’s energy investment landscape. We find alternative finance is often set in opposition to commercial capital. Alternative finance in both nations is motivated by financial justice outcomes that are poorly understood in current energy policy. Our findings suggest that 6 principles are key to ‘just’ energy finance: affordability, good governance, due process, intra-generational equity, spatial equity, and financial resilience. Energy policy that seeks to mobilise capital, should take account of all six principles.

AB - Up to $61trillion of power systems investment is needed to fulfil the Paris Agreement. The mobilisation of so much capital is a huge challenge. As such, energy policy is changing to meet the needs of commercial finance. However, very little has been done to question the justice implications of this capital mobilisation, and what alternatives there are to commercially-oriented finance for low carbon energy systems. This paper uses a comparative analysis of two developed economies to explore how ‘alternative’ forms of finance operate in each nation’s energy investment landscape. We find alternative finance is often set in opposition to commercial capital. Alternative finance in both nations is motivated by financial justice outcomes that are poorly understood in current energy policy. Our findings suggest that 6 principles are key to ‘just’ energy finance: affordability, good governance, due process, intra-generational equity, spatial equity, and financial resilience. Energy policy that seeks to mobilise capital, should take account of all six principles.

KW - Management studies

KW - Alternative Finanzierungsformen

KW - Ethisches Investment

KW - Energy research

KW - Bürgerenergie

KW - Energiewende

KW - Finanzierung

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JO - Applied Energy

JF - Applied Energy

IS - July 2018

ER -

Finance and Justice in Low-Carbon Energy Transitions

Abstract

Bibliographical note

Research areas and keywords

ASJC Scopus Subject Areas

UN SDGs

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