Energizing Finance 2018
Energizing Finance: Understanding the Landscape 2018 - is the second in the Energizing Finance series. It builds on Understanding the Landscape 2017 to highlight key developments that require urgent action if the world is to meet SDG7 by 2030. The report reveals that over the period 2015-16:
- Finance for electricity remains dramatically short of that required to meet SDG7 and deliver universal energy access on time. While at first glance the numbers seem promising, committed finance stands at only half of that required annually to achieve universal electricity access.
- Finance commitments for access to residential clean cooking solutions have fallen since the previous reporting period 2013-14. US$4.4 billion is required annually by 2030 to address the lack of access to clean cooking solutions for ~3 billion people globally and help end the millions of deaths caused annually from traditional cooking methods. The US$32 million in finance per annum on average for clean cooking tracked in this year’s report accounts for less than 1% of this amount.
- In the countries tracked, finance commitments for coal plants almost tripled since 2013-2014, growing from US$2.8 billion to US$6.8 billion.
Financial institutions must evolve to respond adequately to the changing global energy landscape, as well as take greater action to stimulate market development and incentivize industry, particularly in nascent electricity markets.
The report urges government leaders, especially in countries where the shortfall in finance commitments is greatest, to identify the appropriate policy settings, financial instruments and business model innovation required to achieve sustainable, last mile electricity access.