Mobilising private investments for the implementation of intended nationally determined contributions and low emission development strategies
As of: August 2020
Objective and activities
The implementation of the Paris climate targets largely depends on the provision of the necessary financial resources. The project supports the mobilisation of private investments for the implementation of nationally determined contributions and low emission development strategies (LEDS) in the partner countries and advises public and private stakeholders to this end. Climate-friendly investment plans are being developed and existing plans improved in selected sectors. In parallel, the project also addresses investment barriers by supporting partner countries in drawing up political and regulatory frameworks and financial instruments. The conditions for private investment in NDC implementation are improved by reducing investment risk and designing incentive mechanisms. The LEDS Global Partnership also provides a forum for stakeholders to share their learning experiences and replicate successful approaches. /
State of implementation/results
- The project is providing support to unlock investments and integrate Solar Irrigation Pump (SIP) systems with the national grid in future, and has developed the SIP Prioritisation Tool, which guides the site selection for new projects. The project is showcased in a webinar on “Climate-smart energy development planning: Lessons from Bangladesh” (www.youtube.com/…) held in collaboration with the Asia LEDS.
- The Waste Disposal Investment Mobilisation Roadmap was delivered to the Ministry of Environment, and the recommendations were presented in a workshop to key stakeholders. Additionally, bilateral meetings have been held with the private sector to receive feedback on the proposed measures. A news article on the project featured in the October IKI Peru bulletin (ikinews-peru.com/…).
- Through the Clean Energy Investment Accelerator (CEIA), the project led a training workshop in November 2019 with the Rural Electric Cooperatives Association entitled "Mobilizing Electric Cooperatives' (ECs) Investment in Renewable Energy," where CEIA trainers shared resources and tools like CEIA's Renewable Portfolio Standard (RPS) Calculator.
- As part of the CEIA, the project led its sixth Renewable Energy Buyers Vietnam Working Group in December 2019. Topics included the Direct Power Purchase Agreement (DPPA) pilot program and the role of Energy Attribute Certificates (EACs). CEIA formalized a technical assistance scope of work with outdoor apparel company Arc'teryx to support manufacturing partners to assess rooftop solar solutions.
- The project co-hosted a green finance workshop, which brought together international and local financing institutions. Notably, the workshop identified opportunities for jointly promoting new approaches to energy efficiency and renewable energy finance through green bonds and other mechanisms.
- The Bioethanol Masterplan was recently adopted by the Rural Electrification and Renewable Energy Corporation (REREC), a positive signal to investors. The market-leading private sector company recently confirmed that the project has assisted them to now serve 20,000 households with bioethanol for clean cooking. This is expected to grow to 120,000 households by the end of 2020. The research study commissioned by SSN also played a vital role in assisting KOKO Networks to raise USD 20m of private equity.
- The project completed the mini-grid financial model and business models for productive use. As a result of the project, the World Bank announced they would commit USD 400m to co-finance mini-grids for productive use. The Government of Ethiopia committed to addressing regulatory barriers related to licensing. The Agriculture Transformation Agency identified mini-grid pilot sites for investment cases.