Asian banks are still reluctant to lend sizeable amounts for renewable energy projects , despite their growing importance in India and China , categorising them at the same level of risk as small and medium - sized companies , according to a report by the Asian Development Bank ( ADB ) . It said fossil fuel projects are easier to fund due to higher realisation costs for investors and lower rates of return . However , the report suggested an array of alternative funding options , from green bonds to market - based financing , and urged governments to make clean energy projects part of their sustainable development plans , taking the pressure off banks .
Asian banks are still reluctant to lend sizeable amounts for renewable energy projects, despite their growing importance in India and China, categorising them at the same level of risk as small and medium-sized companies, according to a report by the Asian Development Bank (ADB). It said fossil fuel projects are easier to fund due to higher realisation costs for renewables and lower rates of return. However, the report suggested an array of alternative funding methods, from green bonds to community-based financing, and urged governments to make clean energy projects part of their sustainable development plans, taking the pressure off banks.