Abstract

Achieving net-zero carbon emissions by 2050 creates a US$27 trillion market for clean energy, but climate-vulnerable markets may miss out due to opaque, overly complex power project contracts. Transparent and standardized contracts can accelerate clean energy deployment by reducing information asymmetry between project developers and host governments. Addressing climate change and the energy needs of 3 billion people depends on massively scaling clean energy investment. However, success may be hindered if power project contracts are negotiated privately, hiding the true costs and risks. The G20 should commit to creating a global standard for power contract disclosure and transparency to operationalise Principle 6 of the G20’s Principles for Quality Infrastructure Investment. Governments, investors, and lenders should adopt standardized contracts and make them publicly available.

This note is an updated version of a T20 Policy Brief published by Think20.

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