Ms. Thompson opened the Sustainable Energy for All (SE4All) meeting by highlighting that we need to develop sustainable energy and overcome financial challenges. Energy is critical to global development, but the future cannot depend on fossil fuels. In addition Energy efficiency and technology can provide universal energy access for all. The international community must replace fossil fuels by addressing the financial constraints of renewable energy. A committee, designed to investigate sustainable energy investments through public and private sectors, has proposed a draft report to catalyze investments by 2020. The report identifies significant financial gaps. Mr. Gulati illustrates that traditional and non-traditional investments are needed to accomplish three objectives: access, renewables, and efficiency. Also, Policy reforms need to attract capital, and address aggregation mechanisms and the lack of capacity.
Main issues focus on dealing with capital flow, de-risking environments, creating a predictable framework, and blending. Public and corporate governments must become financially viable, attract capital, and keep consumer costs fair. Mr. MacGeorge introduces the problem of channeling funding into countries below investment grade level. Sustainable Energy for All has a challenge of filling a $45 billion dollar gap. Not many renewable energy projects are attractive to financiers because of un-developed technology. Governments in low-income countries cannot take on the challenges of renewable energy, placing the burden on uninterested private developers. Another challenge lies in creating an attractive risk and return balance. Risk is only lessened when preparation of the project and policy mechanisms are improved. Larger projects generate more interest, leaving many middle-sized projects in an ignored category. Aggregation initiatives are being used to make assets appear more attractive to investors. Ambassador Pedersen related sustainable energy back to the Post-2015 Development Agenda.
Meeting: Event on “Financing Sustainable Energy for All” (organized by the Special Representative of the Secretary – General for Sustainable Energy for All)
Date/Location: Wednesday, January 28th, 2015; 1:15 pm to 2:45 pm; Conference Room 12
Speakers: Abyd Karmali, Managing Director, Climate Finance, Bank of America Merril Lynch; Elizabeth Thompson; Richard MacGeorge, Lead Infrastructure Finance Specialist, World Bank; Mohinder Gulati, Chief Operating Officer of the Sustainable Energy for All Initiative; Ambassador Geir O. Pederson, Permanent Representative of Norway to the United Nations
Written by: Ellie Guner
Edited by: Modou Cham