Implementing Intended Nationally Determined Contributions (INDCs) and Low Emission Development Strategies (LEDS) through Mobilising Private Investments - 17_I_278 - 9793 - Internationale Climate Initiative (IKI)

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Implementing Intended Nationally Determined Contributions (INDCs) and Low Emission Development Strategies (LEDS) through Mobilising Private Investments

As of: December 2019

Objective and activities

The project aims to mobilise private investment for the implementation of Nationally Determined Contributions (NDCs) in its partner countries. It supports public and private actors in the mobilisation of investments from the private sector: in a first step, the sectors will be identified that show the highest potential for private sector mobilisation. In these sectors, climate-friendly investment plans are developed and improved. At the same time,it addresses investment barriers by supporting partner countries in the preparation of favourable political and regulatory frameworks and financial instruments. By decreasing investment risk and improving incentives, the project creates the necessary preconditions needed to foster private investments into NDC implementation. Through the LEDS Global Partnership the project moreover provides a platform for the relevant actors to exchange know-how and best practices.

State of implementation/results

  • In April 2019, the project published a case study on Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design (see southsouthnorth.org/…). In June 2019, a convention was held in Arequipa, Peru to valorise solid waste at municipal level. In September 2019, the Green Bond Roadmap was published, which is a resource demonstrating the use of green bonds in mobilising capital for climate action.
  • As the Bangladesh government aims to deploy around 25,000 to 50,000 solar irrigation pumps (SIP) in the next 10 years, the project is providing support to unlock investments and integrate SIP systems with the national grid in future by developing a geospatial tool to guide the site selection for new projects. For additional information, visit the project page (southsouthnorth.org/…).
  • In consultation with the Ministry of Environment, the project in Peru is developing an implementation roadmap for the waste sector, and has identified investment mobilisation measures to address the barriers affecting the mobilisation of private capital. For additional information, visit the project page.
  • In Vietnam, the project has established a robust working group of over 100 prospective corporate renewable energy buyers, developers and investors, including 20 major multinationals. The project is also supporting its first aggregated procurement, working with a major textile supplier to several large multinational retailers. Emerging project outcomes are also informing policies of the Ministry of Industry and Trade on direct power purchase agreement structures for b-2-b clean energy sales.
  • In the Philippines, the project entered into a Memorandum of Understanding with Santa Rosa City to help industrials within the city to buy renewable energy. The project is also working with distribution utilities and electric cooperatives to improve their capacity to meet and exceed the new Renewable Portfolio Standards policy.
  • In the Dominican Republic, the project has identified private sector business association with interests in collaborating to provide their member companies with support in assessing opportunities for energy efficiency upgrades. The project will also work with local and regional development banks to develop the investment case and facilitate connections with potential borrowers.
  • The project is providing support to the Ethiopian Ministry of Water, Irrigation and Energy (MoWIE) in the off-grid energy sector by developing a viable financial model for mini-grids, and identifying business models for productive use. The project is also validating 50 sites for potential mini-grid development while preparing investment ready-proposals for private sector solar powered irrigation schemes for 10 sites.
  • The project is supporting the Kenyan government to develop a bioethanol Master Plan for cooking through a multi-stakeholder process involving several ministries and the private sector to champion the upstream development, and demonstrate the agriculture and industrialisation investment opportunities.

Project data

Country:
Bangladesh, Dominican Republic, Ethiopia, Kenya, Peru, Philippines, Vietnam

Implementing organisation:
SouthSouthNorth

Partner institution(s):
  • Department of Energy (DOE) - Philippines
  • Ministry of Environment, Forest and Climate Change (MEFCC) – Ethiopia
  • Ministry of Environment, Water and Natural Resources (MEW&NR) - Kenya
  • Ministry of Environment (MINAM) - Peru
  • Ministry of Environment and Forests - Bangladesh
  • Ministry of Environment and Natural Resources - Dominican Republic
  • Ministry of Natural Resources and Environment (MONRE) - Viet Nam

BMU grant:
€ 4,992,648

Duration:
04/2017 till 03/2020