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.
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.
Alternative Investment Funds offer the best near and medium-term path to expanding renewable energy access to capital markets.
This CPI study, produced in collaboration with PT Sarana Multi Infrastruktur (Persero) explores the potential of developing a green investment bank model in Indonesia.
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.
To better understand China’s green bond market, Climate Policy Initiative (CPI) and the International Institute of Green Finance (IIGF) conducted extensive primary data research to track bond issuances, their use of proceeds and their environmental and climate impacts.
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.
Indonesia has a unique opportunity to learn from past mistakes and build a recovery that improves the country’s chances for economic stability and growth.
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.
India’s lightbulb moment: Not using this crisis for meaningful energy sector reform would be a waste
The trend of low power demand, now furthered in the post-COVID economy, and increased RE generation, will continue to put a ceiling on the PLF of the thermal fleet.
Tasked with managing funds related to environmental protection and conservation, Indonesia’s Environmental Fund Management Agency provides a unique financing mechanism to help meet the country’s climate goals.