According to the International Energy Agency (IEA), full implementation of countries’ submitted pledges for low-carbon development will require USD 13.5 trillion in investments in energy efficiency and low-carbon technologies from 2015 to 2030. That’s almost USD 1 trillion every year. This means all hands need to be on the deck if the global community is to address one of the biggest development challenges of our times.
Climate finance is a springboard for change. It gives countries and companies that extra lift they need to replace dirty technologies with clean technologies that are initially more expensive but hold the promise of being economic game-changers in the medium and long-term.
The USD 5.3 billion Clean Technology Fund (CTF) aims to scale-up financing to 15 middle income countries, one regional program in the Middle East and North Africa and a Dedicated Private Sector Program (DPSP), that extends to other countries and region, in order to contribute to the demonstration, deployment and transfer of low carbon technologies with a significant potential for long-term greenhouse gas emissions (GHG) reductions. It provides concessional financing, channeled through six partner multilateral development banks (MDB), to large-scale, country-led projects/ programs in renewable energy, energy efficiency, and transport.
The CTF recently released its latest Results Report, which is based on 55 MDB-approved projects/ programs reporting over a one-year period. Below are some of the highlights from the report. It should be noted that, depending on the stage of implementation, not all indicators from a project may be reporting results- for example, a project that just met financial closure might only be reporting on the co-financing indicator, compared to another project which is under operation and hence, reporting GHG emission reductions. However, targets across all indicators are included when comparing results.
*GHG reductions/ Energy savings: Targets ANNUAL
*Co-financing/ Installed capacity: Targets CUMULATIVE
*m-PPD: Million passengers per day UPON IMPLEMENTATION
Greenhouse gas (GHG) reductions (tCO2e): Eighteen out of 55 projects/ programs are under operation and expected to produce over 5.5 million tCO2e in emission reductions annually, while the remaining are at different stages of implementation and will report emissions reductions once they become operational. Cumulatively, total GHG reductions supported by CTF projects/ programs reporting results so far is 20 million tCO2e, which is roughly equivalent to annual greenhouse gas emissions from over 4.5 million passenger vehicles, or annual CO2 emissions from six coal-fired power plants. The volume of GHG reductions reported is at similar levels than what was reported during last period with a slight decrease, mainly due to the fact that two projects/ programs that reported results in 2013 (over 0.25 mtCO2e per year in total) did not report this year due to lack of available data.
Co-financing (USD million): Total co-financing mobilized during this period was over USD 4 billion. For projects/ programs reporting results, around one-third of the expected co-financing has been reported on a cumulative basis, of which, around one-third has come from the private sector, around one-third from the MDBs, and over one-third from government, bilateral and other sources combined. In Africa, over 50 percent of the co-financing has come from bilateral sources, while over 40 percent from the private sector in Asia, over two-thirds from the MDBs in Europe and Central Asia and over one-third from the private sector Latin America & the Caribbean regions. Results for the current year were higher than last year largely on account of two projects in Mexico and Morocco that mobilized over half of the total co-financing for this period, mainly from the bilateral, government and the private sector sources.
Installed capacity (Megawatt, MW): Ten out of 55 projects/ programs are under operation and resulting in 2,739 MW, or around one-fifth of the renewable energy capacity expected to be installed on a cumulative basis. This is more than roughly the total installed capacity of electricity from all sources in Iceland. The largest share of renewables is in Europe and Central Asia, followed by Asia and Latin America and the Caribbean regions. Projects in Africa are at early stages of development and hence, not reporting results yet. Wind continues to be one of the most installed technologies this year as well with over 425 MW in capacity being installed during the period, almost 50 percent more than previous year.
Energy savings (Gigawatt hours, GWh): Ten out of 55 projects/ programs are under operation and resulting in energy savings of over 3,900 GWh per year. Over 80 percent of energy efficiency projects are in Europe and Central Asia, with two projects in Turkey being responsible for 45 percent of the energy savings reported in the current year. The amount of energy savings reported were over 10% higher compared to that reported during the previous period, despite not including one project that reported around 475 GWh in savings last time, but did not report due to lack of available data.
Additional passengers per day (million): The transport projects are at early stages of development and are yet to report results.
In addition to core indicators, at least one indicator for a development co-benefit is expected to be identified and integrated into each project/program financed under the CTF with reporting done when appropriate, preferably annually.
Economic co-benefits: CTF-funded projects reporting results so far have facilitated growth in local industries like solar, wind, among others. Through demonstration effect, these projects address risk perception around new technologies, like CSP, or efficient equipment, such as lighting and appliances, and in the process, facilitate private sector participation thereby increasing competitiveness and lowering costs. Indirectly, projects result in both short and long-term job creation. Over 25,000 jobs are expected to be created during different stages of project development, from short-term jobs during construction phase to more long-term jobs during the implementation phase. With improved affordability due to lower costs and increased income levels from new jobs, these projects help improve local economic conditions.
Environmental co-benefits: Due to increased use of renewable energy sources and more efficient equipment that reduce further dependence on fossil fuel, CTF-funded projects result in avoided local pollution, leading to public health benefits associated with improved living conditions.
Social development co-benefits: CTF funding has also been used by project developers toward building local capacity since, in a number of cases, local manufacturing, workers, or local financial intermediaries have not been exposed to certain risks or a technologies previously. Renewable energy projects, such as the geothermal program in Indonesia, are expected to expand access through over 950,000 new connections, while one of the critical benefits of sustainable transport projects is reduction in traffic accidents leading to savings in public health expenditure.
The EBRD, along with the Climate Investment Funds’ Clean Technology Fund, and Global Environment Facility (GEF), will provide $250 million through debt and equity funding.
“No one believed a woman could make it happen.” But Wandee Khunchornyakong has succeeded in beginning a renewable energy revolution in her native Thailand — one that has already created thousands of new jobs and is driving climate-smart development.
The European Bank for Reconstruction and Development (EBRD) has announced a significant financing programme to boost renewable energy generation via the private sector in North African and Middle Eastern countries.
US$ 250 million in financing will be available for projects in Morocco, Egypt, Tunisia and Jordan; regions where fossil fuels still have a stranglehold. According to the International Energy Agency, all SEMED countries still derive the majority of their primary energy supply from gas, oil or coal.
The European Bank for Reconstruction and Development (EBRD) and two partners will offer $250 million (€227.6 million) in debt and equity funding for renewables projects by private firm in Morocco, Egypt, Tunisia and Jordan.
When the full complex is complete, it will be the largest concentrated solar power (CSP) plant in the world , and the first phase, called Noor 1, will go live next month. The mirror technology it uses is less widespread and more expensive than the photovoltaic panels that are now familiar on roofs the world over, but it will have the advantage of being able to continue producing power even after the sun goes down.
NEW YORK — Before Congress Thursday, Pope Francis’s words on the environment were relatively conciliatory. He sought “dialogue” – a word the pontiff used 12 times. He did not even explicitly mention the word “climate change,” though he did call on Congress to help “avert the most serious effects of the environmental deterioration caused by human activity.” But speaking to the United Nations General Assembly Friday, Francis transformed into an international policy, law, and development wonk – and above all, the spirited author of “Laudato Si” (“Praised Be”), his stirring encyclical on the environment.