Implementing Intended Nationally Determined Contributions (INDCs) and Low Emission Development Strategies (LEDS) through Mobilising Private Investments
As of: June 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 partnership with the Sustainable Renewable Energy Development Authority in Bangladesh, the project recently completed a study on existing business models for solar mini-grids, solar boats and solar irrigation pumps, with suggestions on short-term improvements to enable rapid market development.
- 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. Currently, plans are underway to organise the first aggregated procurement for the project.
- In the Dominican Republic, the project has identified private sector business associations interested in moving forward on a collaboration to provide their member companies with support in assessing opportunities for energy efficiency upgrades. Subsequently, the project will work with local and regional development banks to formulate the investment case and help facilitate connections with potential borrowers.
- The Government of Kenya (GoK) has increased tax on kerosene, improving the business case for bioethanol as a clean cooking fuel. As a policy lever, the project plans support for a bioethanol Master Plan, with broad support across several ministries to champion the upstream development, especially the agriculture and industrialisation investment opportunities from rising demand for bioethanol.
- In Peru, the project has delivered two concept notes to the Ministry of Environment, evaluating the three emissions reductions technologies for the landfill sites at Trujillo (gas capture and energy generation) and San Juan Bautista (leachate evaporation). Currently, the project is developing the investment cases, followed by an exploration of the potential investment mobilisation measures, and the implementation roadmap.
- In the Philippines, the project has 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 the new Renewable Portfolio Standards policy.
- In Ethiopia, the project is concluding a detailed investigation into the regulatory and policy framework for mini-grids while the upcoming work stream develops a sound financial and business model for mini-grids, with potential to mobilise investment.