Financial and Economic Barriers

The Financial and Economic barriers are among the most serious problems encountered by projects that seek to develop low carbon and renewable technologies in urban areas. Both the financial costs and risks associated with these technologies impede access to capital, ultimately hindering the development from the very early stages. Conventional energy sources continue to be more cost-effective, which means that without preferential access to capital, investors prefer to avoid developing in renewable energy projects. As a result, the market for these technologies remains underdeveloped, ultimately preventing dissemination.