The Project Finance Law Review: Editor's Preface
I am pleased to introduce the third edition of The Project Finance Law Review, which now includes additional new chapters covering government investment agreements, commercial lenders, government funding and construction risk. This edition builds on the work from the first two editions, expanding both the scope and depth of the resource offered.
Recent years have seen many changes affecting the projects market, including enormous growth in capital directed toward renewable energy (and more novel projects such as carbon capture and storage, and hydrogen), the increasing impact of the regulatory environment on the viability of large projects and now, as the world gradually recovers from a covid-19-induced downturn, an abundance of government financing for selected projects as a part of various economic stimulus programmes. Project finance, unsurprisingly, continues to evolve with the markets it serves. The purpose of this volume is to provide a living guide to project finance that will be updated on a regular basis, while still tackling the core project finance concepts that every practitioner needs to understand.
This volume seeks to cover the most salient topics while leaving scope for expansion into other key areas (such as mezzanine financing, the effect of new technology risk on project financing and environmental, social and governance (ESG) issues) in future editions. As discussed briefly at the end of Chapter 1, all three of these areas have been in great flux, with newer funding sources (e.g., private equity, pension funds and sovereign wealth funds), changes in the nature of projects seeking finance (which now may involve new technologies such as carbon capture and even direct air capture of carbon dioxide) and more substantial environmental restrictions (particularly with respect to climate change concerns) in effect at key lending institutions all combining to change the complexion of the project finance market. The next several years should bring increased clarity to all of these subjects, including particularly the future of project finance in the oil and gas industry.
I would like to express my thanks to all of the authors of this third edition, and particularly those who have contributed new chapters or who undertook significant updates to their earlier work. Their efforts have allowed this volume to be more useful than ever as we enter a new decade facing increasing uncertainty in global politics and global markets, including the project finance market. It is the hope of all of the authors that this volume not only will be of use to all of its readers today, but also will continue to grow in scope and utility in the years ahead.
David F Asmus
Sidley Austin LLP