Through a series of working group meetings and additional consultations with experts in the field of ERC finance, the World Bank ERP Finance Working Group identified four key risks that influence ERC transactions (Figure 10) and the most effective or promising tools or approaches for mitigating those risks. ERC generation as an economic activity and the associated technologies and practices remain unfamiliar to most financiers, and the market is still small and shallow and is fundamentally policy driven.
Though the ERC market is still in the lower half of its financing curve, see Figure 5, there are some promising examples of financial structures that have successfully tapped into capital markets or a highly diverse base of international investors.