On the first day of the Sustainable Energy for All Forum, the second session focused on catalysing investment through innovative business models.
Mr. Zindler, a representative of the Bloomberg team, started by introducing his field, which focuses on new energy technologies and investment in clean energy. Mr Zindler highlighted the current challenges for policymakers, especially in developing countries. Firstly, it is difficult to find the appropriate level of support for renewables, given the uncertainty over costs. Allocating support costs equitably, integrating renewables into the grid and preparing for cost parity are equally difficult. Therefore, he would like to come up with ideas about promoting innovation for policies and financials, efficiently in the near future.
Mr. Sarkar followed by highlighting the current challenges in terms of energy efficiency implementation in the developing world since different countries use different financial instruments. Therefore, he introduced three implementation models to tackle the challenges and financing gap categorized under the Energy Efficiency Fund (EE Fund), namely the public model, private model and public private partnerships (PPPs). He emphasized that PPPs has a possibility of bringing in new sources of financing for funding public infrastructure and service needs. Some countries like Romania, Bulgaria, Korea and India are already implementing the EE Fund. This fund would be able to support energy efficiency, renewable energy and promote economic development and energy security.
Mr. Roders, who moderated the meeting, concluded the session with an example – introducing the innovative programming for climate change, which is a performance-based financing for projects and sectors. One of the advantages of this programming is that it catalyses the engagement of the private sector, including PPS, risk-mitigation and structured financing tools, global certification, standards programs and SME Small Grant Program.
Meeting Title: Accelerating Sustainable Energy Deployment through Support for Innovation
Speakers: David Rodgers, Senior Climate Change Specialist, Climate and Chemicals, GEF; Ethan Zindler, Head of Policy Analysis, Bloomberg New Energy Finance ; Ashok Sarkar, Senior Energy Specialist, World Bank
Location: UN Headquarters, Trusteeship Council
Date: 4 June 2014
Written By WIT representative: Samantha Kong
Edited by WIT representative: Sophia Griffiths-Mark