Editing IPCC:AR6/WGIII/Chapter-16 (section)

==== 16.2.1.2 Demonstration ====

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Demonstration is carried out through pilot projects or large-scale testing in the real world. Successfully demonstrating a technology shows its utility and that it is able to achieve its intended purpose and, consequently, that the risk of failure is reduced (i.e., that it has market potential) ( [[#Hellsmark--2016|Hellsmark et al. 2016]] ). Demonstration projects are an important step to promote the deployment of low-carbon energy and industrial technologies in the context of the transition. Government funding often plays a large role in energy technology demonstration projects because scaling up hardware energy technologies is expensive and risky ( [[#Brown--2009|Brown and Hendry 2009]] ; [[#Hellsmark--2016|Hellsmark et al. 2016]] ). Governments’ engagement in low-carbon technology demonstration also signals support for businesses willing to take the investment risk ( [[#Mazzucato--2016|Mazzucato 2016]] ). Venture capital, traditionally not tailored for energy investment, can also play an increasingly important role, thanks to the incentives (e.g., through de-risking) provided by public funding and policies ( [[#Gaddy--2017|Gaddy et al. 2017]] ; [[#IEA--2017a|IEA 2017a]] ).

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