Financing Energy Transition Projects
Valuation of Project Impacts

This is a study on the methodology and computation of the total impact value generated from various Energy Transition Projects implemented in Asia Pacific. The validation of these capital commitments and allocation, as well as their performance, is usually done by a third-party assurance entity. However, this process does not guarantee the complete reflection of social and environmental impacts. The use of financial proxies as a translation of impacts would facilitate a better comparison of different impacts generated by different green projects and allow for a more holistic value creation expressed in terms of the return on investment (ROI). This will be useful for various stakeholders (e.g. Policymakers, investors, or NGOs) when making investment decisions.

The key contribution of this research is to establish a holistic integrated valuation framework that facilitates the computation of the Integrated Return on Investment (IROI) of each energy transition project. The new methodology will provide the monetization of different impact metrics of various green projects for the ease of comparison across time and geographical locations, facilitating a more efficient investment decision process in the context of sustainable development in energy transition in different Asian countries.