Promoting Renewable Energy Through Adaptive Prudential Regulation in Financial Services

22 Pages Posted: 14 Apr 2010

See all articles by Panos Delimatsis

Panos Delimatsis

Tilburg Law and Economics Center (TILEC); Tilburg Law School

Date Written: April 13, 2010

Abstract

Promotion of renewable energy has become one important priority in the political agenda worldwide. However, financing of renewable energy projects, especially the small-scale ones, is not always streamlined and banks may not always be willing to invest in such projects. This fact is accentuated by the current credit crunch. To overcome this challenge; foster competition; and improve liquidity and diversification of financing opportunities in renewables markets, this paper argues for the adoption of less stringent prudential regulations for those financial service suppliers intending to supply the entire gamut of financial services exclusively in the area of renewable energy. The paper’s underlying syllogism is that the creation of differentiated categories of renewable energy financial service suppliers (REFS) which will have to comply with varying prudential requirements based on such criteria as the type of business activities pursued; the total output of the company; the value of service transactions; or the systemic risk potential will be beneficial for the area of renewable energy and ultimately the combat against global warming.

JEL Classification: F13, F18, G15, G21, G28, K32, K33, Q27, Q28, Q48

Suggested Citation

Delimatsis, Panagiotis, Promoting Renewable Energy Through Adaptive Prudential Regulation in Financial Services (April 13, 2010). TILEC Discussion Paper No. 2010-017. Available at SSRN: https://ssrn.com/abstract=1588868 or http://dx.doi.org/10.2139/ssrn.1588868

Panagiotis Delimatsis (Contact Author)

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Postbus 90153
Tilburg, NL-5000 LE
Netherlands
0031 13 466 8251 (Phone)
0031 13 466 8047 (Fax)

HOME PAGE: http://www.tilburguniversity.edu/staff/p-delimatsis

Tilburg Law School ( email )

Warandelaan 2
Postbus 90153
Tilburg, 5000 LE
Netherlands

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