The impact of green insurance schemes on financial sustainability of renewable energy projects
Year: 2025
Type: article
Abstract: The Green insurance schemes can help serve to reduce risks and improve access to renewable energy financing, thereby improving the financial sustainability of renewable energy projects. While significant, little research has examined the impact of green insurance and its components of risk mitigation, cost management, and investment attractiveness on financial sustainability. The study adopts a conceptual framework consisting of mediating and moderating constructs to examine the relationship between insurance coverage (operational, natural, and financial risks) and project profitability, cash flow stability, and long-term viability of projects. Green insurance assists investors eliminate ambiguities and reduce the cost of capital and enables renewable energy developers improve their financial planning, finds the study. Nonetheless, the success of these schemes rests on enabling regulatory policies and positive market dynamics. The findings underscore the importance of customized insurance offerings, heightened awareness, and cooperation among insurers, policymakers, and renewable energy stakeholders to optimize financial resilience. Green insurance schemes are not merely a risk management tool; they aim to create a risk-sharing model that fosters innovative approaches to financing and facilitates a faster transition to sustainable energy solutions. The findings have practical implications for actors interested in the perception and insulation of green insurance in both financial and regulatory systems to promote the growth of renewable energy.
Institution: Afe Babalola University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7092201687
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