30 September 2025
GWEC and Climate Smart Ventures Release Paper on Risk-Sharing Mechanisms for Offshore Wind
GWEC and Climate Smart Ventures Release Paper on Risk-Sharing Mechanisms for Offshore Wind
Matthew Carpio, Head of Transaction Advisory
Ivan Galura, Senior Associate
Lexie Pelaez, Analyst
30 September 2025 – Melbourne, Australia – The Global Wind Energy Council (GWEC) in partnership with Climate Smart Ventures (CSV) has released a new finance paper that explores risk-sharing mechanisms and financing pathways to accelerate offshore wind (OFW) development in the Philippines. The paper was unveiled during the GWEC’s flagship Asia Pacific (APAC) Wind Energy Summit in Melbourne in mid-September.
Offshore wind is identified as a major opportunity for the Philippines to scale up renewable energy (RE). While the country’s rapid RE growth underscores the need for robust financing frameworks, OFW projects remain costly due to the lack of infrastructure, supply chains, and economies of scale.
The new paper, Financing the Offshore Wind Revolution: Risk-Sharing Mechanisms for a Sustainable Energy Future in the Philippines, draws on global best practices and lessons from the Philippines’ Offshore Wind Technical Working Group led by GWEC and the Wind Energy Developers Association of the Philippines (WEDAP). It highlights the importance of balancing risks between developers, financiers, and the state through tools such as indexation, lender step-in rights, and streamlined permitting.
Key findings show that OFW projects face high upfront risks—including permitting challenges, early-stage capital requirements, and regulatory uncertainty—which slow investment. These can be addressed through:
- Enhancing the financial participation of public sector in OFW projects
- Maximizing parallel processes through high coordination of OFW related activities across National Government Units
- Improving financing packages and project bankability through better risk-sharing frameworks between public and private stakeholders
“In this paper, GWEC Philippines Country Manager Ann Margret Francisco emphasized: “This Finance Risk-Sharing Mechanism Paper is an initiative born out of the recognition that, for offshore wind projects to succeed, we must establish a clear and effective framework for managing and sharing risks. In shaping these recommendations, we sought to build a shared understanding among government, financial institutions, and developers on how risks might be more effectively managed together. With stronger and more reliable financing structures in place, we can prepare a more conducive investment environment for offshore wind in the Philippines. By reducing risks, we can lower the cost of capital, making projects more bankable and accelerating the country’s clean energy transition.”
The paper was authored by Climate Smart Ventures team members Matthew A. Carpio, Ivan Mark Galura, and Elena Alexandra T. Pelaez, and edited by the Global Wind Energy Council team Liming Qiao, Mark Hutchinson, and Ann Margaret Francisco.
Matthew Carpio, CSV’s Head of Transaction Advisory, said: “Climate Smart Ventures is pleased to have collaborated with the Global Wind Energy Council on this offshore wind study. Unlocking billions in investment will require balanced risk allocation among government, financial institutions, and developers. This paper provides clear, actionable recommendations for each stakeholder group to help position offshore wind as a cornerstone of the Philippines’ clean energy transition.”
Access the full paper here.
About Climate Smart Ventures
Climate Smart Ventures (CSV) is an advisory firm advancing the energy transition in Asia. Our expertise and projects span coal to clean utility-level energy transition, industrial decarbonization, grid transformation, transition finance, and government-level policy recommendations. We also provide ESG and sustainability advisory services, focused on decarbonization and management of environmental and social impacts. Ecosystem building and collaboration are key elements of our firm, which partners closely with the region’s leading corporates and power portfolio owners, investors, off-takers, and others. For more information, visit our website https://climatesmartventures.com.
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