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.
Energizing Finance 2017
In 2017, SEforALL launched its Energizing Finance research series - the first and only in-depth attempt to capture multiple years of data on investment in 2 key areas of energy access: electrification and clean cooking. It focuses on public and private finance commitments in HICs – that together account for nearly 80% of those living without access to sustainable energy. This enables policymakers and investors to begin to track progress in scaling up energy access finance to meet SDG7.
The inaugural 2017 series comprised 3 related research reports:
Understanding the Landscape 2017 tracked and analyzed finance flows for electricity and clean cooking access in HICs, averaged per annum across 2013-14
Missing the Mark examined gaps and lags in disbursement and absorption of development finance commitments on energy access in key Sub-Saharan Africa and Asian countries
Taking the Pulse investigated energy access finance needs in five countries – Bangladesh, Ethiopia, Kenya, Myanmar, and Nigeria – to elucidate actions required to scale up decentralized renewable electricity and clean cooking solutions. The financing, policy and operating needs of enterprises delivering energy access will be critical to achieve SDG7.
The 2017 Energizing Finance report series was brought together by a policy paper entitled Energizing Finance: Scaling and Refining Finance in Countries with Large Energy Access Gaps. This offers recommendations to support governments and development finance institutions boost financial commitments – and to allocate it more effectively to help achieve universal energy access for all by 2030.
