Private sector engagement is not, however, without risk. Their finance is often dependent on the expected returns of investment and the amount of investment risk they are willing to accept. IES can provide an enabling environment to allow greater private sector engagement and develop a long-term perspective of their investment.

The integrated approach of IES can:

• Disperse the burden of financial risk and impact of political, environmental and social changes across multiple private and public investors and programs throughout stages of the IES process (e.g. upfront/ readiness, during implementation, or self-sustaining investments).

• Provide a supportive institutional framework under which investments can be coordinated and co-benefits encouraged for multiple stakeholders.

• Encourage co-benefits through the use of different forms of incentives that address multiple issues for diverse stakeholders. While each stakeholder invests for their own objectives, each investment works towards a mutual goal.