Day: Monday, 5th October 2015
Time: 16:30 – 18:00
Room: Hall 1A
Significant strides were made in the financing of renewables in 2014. Renewable energy technologies (excluding large hydro) made up 49% of the net power capacity added worldwide and contributed approximately 9.1% of world electricity generation in 2014. Overall global investment in renewable power and fuels (excluding large hydro) was USD 270.2 billion in 2014, nearly 17% higher than the previous year.
The Global Landscape of Climate Finance evaluates that in 2013 annual global climate finance flows totalled an average of USD 331 billion. Of this, USD 197 billion came from OECD countries (60%) while USD 132 billion came from non-OECD countries (40%). With regard to climate finance expenditure the investments were split almost 50 / 50 between developed and developing countries.
Financing for renewable energy globally still faced substantial challenges, including retroactive policy changes, grid access issues, and the declining price of oil. Other challenges also remain which are distinct to developing countries, such as the lack of appropriate power purchasing agreements, insufficient renewable energy tariffs, and local electricity price subsidies; while economic issues such as high inflation, heavy government debt from external borrowing and nascent financial sectors have led to much higher costs for debt financing and more limited access to long-term debt compared to developed countries. In Africa the deep-seated positions of national monopoly electricity companies continue to hinder the introduction of wind and solar generation.
The purpose of this session is to explore the current status quo of global renewable energy investment with a focus on Africa, as well as to present recent trends in financial mechanisms for advancing climate mitigation actions.
Questions to be addressed by the session
- What are easy, low cost options for mitigation finance and how can we avoid crowding out the private sector?
- There are many design options available for tailoring the financial mechanisms to national policy goals. What are some which you consider most important?
- Besides the four mechanisms listed in the paper, which others do you feel are effective for scaling up investment in renewable energy, in particular in Africa? What are their benefits and draw-backs?
- Building on lessons learned from mitigation finance, what benefits might adaptation finance offer the private sector?
- Ms. Silvia Kreibiehl, Head of Centre, Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance, Germany
- Mr. Kadri Nassiep, CEO, South African National Energy Development Institute (SANEDI), South Africa
- Ms. Karen Breytenbach, Head IPP Office, Department of Energy, South Africa
- Ms. Silvia Martinez Romero, Senior Renewable Energy Specialist, World Bank
- Mr. Busso von Alvensleben, Director Office Pretoria, KfW, Germany
- Ms. Rentia van Tonder, Head: Renewables, Power & Infrastructure, Standard Bank, South Africa