Blended finance is a key tool to help nations meet the United Nations’ Sustainable Development Goals and the goals of the Paris Climate Agreement, while also addressing the risks and barriers faced by investors when pursuing the opportunities these afford.
CPI’s Blended Finance in Clean Energy report looks at what is needed to unlock investment in developing economies. Our analysis found that the greatest opportunities for blended finance impact are in Sub-Saharan Africa and South and East Asia, with a subset of eight high impact countries alone offering USD 360 billion in clean energy investment potential by 2030.
Retiring old, inefficient coal-based power plants by bundling them with new, cheap renewable energy plants would bring multiple transformational benefits to the power sector, improve the PLF and efficiency of old thermal plants.
With the dawn of COVID-19, there is an immediate need for policymakers to create an investment environment that nudges capital flow towards decentralized renewable energy.
There is a growing need to sensitize India’s financial sector about the importance and benefits of Green Finance, and ways to accelerate green capital flows in India.
Indonesia needs to significantly scale up climate finance in the next ten years to achieve its NDCs. CPI’s upcoming study, Uncovering the Landscape of Private Climate Finance in Indonesia, is aimed at developing a first-of-its-kind approach for tracking private climate finance in Indonesia.
Existing decentralized renewable energy business models fail to address prevailing barriers in the sector, ranging from policy barriers, limited access to finance, and high investment risks, discouraging private investments.