Climate Policy Uncertainty and Investment Risk Our climate is changing. Less certain however is the timing and magnitude of climate change and the cost of transition to a low carbon world. This book identifies how climate change policy uncertainty may affect investment behaviour in the power sector. For power companies where capital stock is intensive and long lived those risks rank among the biggest and can create an incentive to delay investment. Our analysis results show that the risk premiums of climate change uncertainty can add 40% of construction costs of the plant for power investors and 10% of price surcharges for the electricity end users. Climate Policy Uncertainty and Investment Risk tells what can be done in policy design to reduce these costs.