Innovative finance for low-carbon development in Africa

GVEP International has just published a Policy Briefing on innovative finance mechanisms and how they could be used to scale up investments in low carbon technologies in Africa. The two case studies examined were presented at a DFID sponsored policy conference at Chatham House in London on 28th January.

Large investments will need to be made to get developing countries energy systems on a different track than the one the industrialised countries have followed if the problem of climate change is to be tackled. The sums required cannot be met by the public sector alone. Private sector investment in renewable energy technologies in developing countries will need to be facilitated and increased. At the same time, discussions on aid effectiveness are influencing the debate on financing development.

Thus the British Department for International Development (DFID) is scoping opportunities to make use of innovative finance possibilities for low-carbon development. As part of a larger work programme for DFID, GVEP International was invited to a high-level policy conference at the Royal Institute of International Affairs (Chatham House) to present its ideas how the concept of Advance Market Commitments could be translated into practical action.

Advance Market Commitments are a concept coming from the health sector, where it helped to bring forward vaccine development and production in developing countries. The aim of the conference was to discuss how the concept could be applied to stimulate action on low carbon innovation and energy investment in developing countries.

GVEP International has discussed the issue in a Policy Briefing describing how Advance Market Commitments could help to scale up sustainable biomass energy technologies in Africa, focusing on briquettes and Earth Bricks.

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