Addressing Barriers to Women Entrepreneurs in Clean Energy

Curated by Clean Technology Hub (February 2025)

Written by Dorcas Samuel

Introduction

Imagine a world where clean energy solutions are designed by and for everyone. Yet, women who make up 50% of the global population remain sidelined in one of the most critical sectors of our time: clean energy. Despite their potential to drive innovation, women hold just 32% of renewable energy jobs and a mere fraction of leadership roles (IRENA). This gap isn’t just a gender issue, it’s a missed opportunity for climate action. The clean energy transition demands diverse perspectives to thrive, yet systemic barriers continue to exclude women entrepreneurs. Let’s explore these challenges and how we can dismantle them.

Women entrepreneurs play a critical role in driving innovation, economic growth, and social progress. However, despite the increasing global focus on gender inclusion, women remain underrepresented in the clean energy sector. The clean energy industry which includes renewable energy production, energy efficiency, and green technology solutions presents immense opportunities for sustainable development. Yet, women entrepreneurs face significant barriers that hinder their participation and success. Addressing these challenges is essential to ensuring an inclusive transition to a low-carbon economy.

Key Barriers Facing Women Entrepreneurs in Clean Energy

1. Limited Access to Finance

One of the most significant barriers women entrepreneurs face in clean energy is limited access to capital. Studies show that women-led businesses receive a disproportionately lower share of venture capital and investment funding compared to their male counterparts. According to the International Finance Corporation (IFC), women-owned businesses face a $1.5 trillion financing gap globally (IFC Report). Traditional financial institutions often perceive women-owned clean energy startups as high-risk ventures due to gender biases, lack of collateral, and limited credit history. This financial gap restricts women entrepreneurs from scaling their businesses and investing in advanced technologies.

2. Gender Bias and Societal Norms

Gender bias remains a systemic challenge in the energy sector. Clean energy has historically been a male-dominated field, with leadership positions often occupied by men. Women entrepreneurs frequently encounter skepticism regarding their technical expertise and business acumen. The International Renewable Energy Agency (IRENA) states that only 32% of the renewable energy workforce is female, with even lower representation in leadership roles. In many societies, cultural expectations and traditional gender roles also discourage women from pursuing careers in energy, reinforcing the perception that clean energy is not a suitable sector for women-led businesses.

3. Limited Networking and Mentorship Opportunities

Networking is a crucial factor in entrepreneurial success, yet women entrepreneurs often have fewer opportunities to connect with key industry players. Many clean energy industry networks, investor circles, and decision-making forums lack strong female representation. A study by the Global Women’s Network for the Energy Transition (GWNET) highlights that mentorship and peer support are crucial for women’s advancement in clean energy but remain insufficiently structured (GWNET Report). Without access to mentorship, industry knowledge, and professional networks, women entrepreneurs struggle to navigate market trends, secure partnerships, and gain visibility in the sector.

4. Regulatory and Policy Barriers

The absence of gender-responsive policies in the clean energy industry exacerbates the challenges faced by women entrepreneurs. Many existing policies and regulations do not consider the unique needs of women-led businesses, making it difficult for them to benefit from government incentives, grants, and tax breaks. Furthermore, bureaucratic hurdles and unclear policy frameworks can disproportionately affect small women-owned enterprises, limiting their ability to compete in the clean energy market. The UN Women and UNEP joint report emphasizes the need for gender-inclusive energy policies to foster sustainable development.

5. Limited Technical Knowledge and Skills Gap

Although women are increasingly pursuing careers in STEM (Science, Technology, Engineering, and Mathematics), there remains a skills gap in clean energy entrepreneurship. The World Economic Forum (WEF) reports that women are underrepresented in technical roles across renewable energy and sustainability sectors, affecting their ability to lead and innovate (WEF Gender Gap Report). Many women entrepreneurs may lack the technical expertise required to develop, implement, and scale clean energy solutions. Additionally, access to specialized training programs and business development resources tailored for women remains insufficient.

These barriers do not exist in isolation. Financial constraints, societal biases, and limited mentorship opportunities collectively hinder women’s ability to thrive in clean energy. Overcoming them requires a multi-faceted approach.

Strategies to Overcome Barriers

To foster a more inclusive clean energy sector, targeted interventions must be implemented to address these barriers. Below are key strategies to empower women entrepreneurs in clean energy.

1. Improving Access to Finance

• Gender-Lens Investing: Financial institutions and investors should adopt gender-lens investment strategies that prioritize funding for women-led clean energy businesses.
• Dedicated Grants and Loans: Governments, development banks, and international organizations should create dedicated financial instruments such as low-interest loans, microfinance programs, and grants specifically for women entrepreneurs in the energy sector.
• Alternative Financing Models: Encouraging crowdfunding, impact investing, and venture capital funds focused on women-led businesses can help bridge the financial gap.

2. Breaking Gender Bias and Changing Perceptions

• Awareness Campaigns: Promoting the visibility of successful women entrepreneurs in clean energy through media, conferences, and case studies can help challenge stereotypes.
• Inclusive Hiring and Leadership Development: Encouraging companies to adopt gender-inclusive hiring practices and leadership development programs can help increase female representation in the industry.

3. Expanding Networking and Mentorship Opportunities

• Women-Focused Business Networks: Establishing women-centered clean energy networks can provide access to mentors, business advisors, and investors. An example is the set of programs undertaken by the Global Women’s Network for the Energy Transition.
• Incubators and Accelerators: Programs such as the SheSustains Accelerator Program (being implemented by Clean Technology Hub), which focuses on supporting women-led businesses, play a crucial role in providing training, mentorship, and access to capital.
• Industry Events and Conferences: Creating platforms where women entrepreneurs can engage with policymakers, industry experts, and investors will help build strategic relationships and enhance market access.

4. Implementing Gender-Responsive Policies

• Government Support Programs: Policymakers should integrate gender perspectives into energy policies, ensuring that incentives and subsidies reach women-led clean energy businesses.
• Simplified Licensing and Permits: Streamlining bureaucratic processes and reducing regulatory burdens for women entrepreneurs — in ways that do not undermine quality — can encourage more participation in the sector.
• Public-Private Partnerships: Collaboration between governments, private sector stakeholders, and NGOs can create tailored support mechanisms for women entrepreneurs.

Examples of Effective Public-Private Partnerships:

Women Entrepreneurs Finance Initiative (We-Fi): We-Fi is a collaborative partnership that includes the World Bank, governments, and private sector investors. It aims to address financial and non-financial constraints faced by women-owned or led small and medium enterprises (SMEs) in developing countries. We-Fi has mobilized significant resources to support women entrepreneurs by scaling up access to financial products and services, building capacity, expanding networks, offering mentorship, and providing opportunities to link with domestic and global markets.

5. Enhancing Technical Skills and Capacity Building

• STEM Education and Training: Encouraging more women to pursue STEM-related fields will increase the number of qualified female professionals in clean energy.
• Entrepreneurship Development Programs: Workshops, boot camps, and e-learning platforms focused on clean energy business models, finance management, and technical skills should be made more accessible to women entrepreneurs.
• Knowledge-Sharing Platforms: Establishing online and offline platforms where women can access market insights, research, and business resources will empower them to make informed decisions.

Conclusion

Women entrepreneurs have the potential to drive transformative change in the clean energy sector, but they continue to face significant challenges that limit their full participation. Addressing these barriers requires a multi-stakeholder approach involving governments, financial institutions, investors, industry leaders, and civil society organizations. By implementing targeted policies, increasing financial support, and fostering an inclusive entrepreneurial ecosystem, we can unlock the potential of women in clean energy. Empowering women in clean energy isn’t charity, it’s a strategic imperative for building a more sustainable and resilient global energy system. Diverse teams innovate faster, and gender-inclusive firms are 21% more profitable (McKinsey). To meet net-zero goals, we need everyone at the table. The time for change is now. Investors must commit to gender-lens funding, policymakers must integrate gender-responsive strategies, and industry leaders must create spaces where women entrepreneurs can thrive. Without decisive action, we risk missing out on half of the talent needed for a sustainable energy future.