Access to renewable energy helps reduce greenhouse gas emissions by decreasing dependence on fossil fuels, particularly coal plants and diesel generators. While the renewable energy sector offers an attractive investment opportunity, there are barriers to investment.
Through our offices in India and Indonesia, we have significantly influenced government policy related to renewable energy. Our team in India works with the Ministry of New and Renewable Energy, the Ministry of Finance, and other policymaker to increase investment to India’s renewable energy targets. We do this through a three-pillar approach: first, understand potential investors and the barriers they face; second, explore policy solutions to these barriers; and third, develop financial instrument solutions to these barriers.
Our latest tracking of Indonesia power sector finance examines renewable energy capacity and financing gaps, as well as opportunities to better align the country’s power sector finance with its NZE 2060 commitment.
A credit guarantee facility could help address cost-of-capital issues for renewable energy, allowing countries with high solar potential to significantly increase their installed capacity.
As cost-competitive clean energy sources grow and India commits to global decarbonization, Indian PSEs’ carbon-intensive businesses are likely to face challenges, potentially resulting in losses for the Indian state.
As Indonesia took up the mantle of G20 presidency, 2022 was a particularly momentous year filled with opportunities to examine the country’s climate finance landscape, improve the underpinning regulatory framework, and foster greater global cooperation on ensuring just energy transitions. Here is a reflection of progresses we have achieved in both sustainable finance and energy transition areas last year and a preview of what is underway for 2023.
Public and private climate finance almost doubled between 2011 and 2020. However, reaching climate objectives will require climate investment to increase at least seven times by the end of this decade.
Public sector enterprises significantly contribute to India’s economy and social fabric, employing over 15 lakh individuals. They must become key change-makers to achieve decarbonization commitments and ensure a just transition for stakeholders.
Rivers of Diesel in the Amazon: Why Does the Region with Brazil’s Biggest Hydroelectric Plants Still Rely on Expensive, Dirty Fuel?
CPI/PUC-Rio researchers point out the contrast of electricity supply and identify “two Brazils”: the interconnected Brazil that runs on renewable energy and the isolated Brazil powered by fossil fuels.