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(5) Finance and investment - Stakeholders E-Consultation - Inputs High Level Dialogue on Energy (Responses)
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This file compiles inputs from from non-governmental organizations, civil society organizations, academic institutions, the scientific community, the private sector, philanthropic organizations, major groups and other stakeholders as contributions to the preparatory process for the United Nations High Level Dialogue on Energy on the theme: "FINANCE AND INVESTMENT". The United Nations does not represent or endorse the accuracy or reliability of any advice, opinion, statement or other information provided through this e-consultation. Our office reserves the right to delete any content/input that is not aligned with the United Nations Charter and/or the principles and purposes of the United Nations High Level Dialogue on Energy.
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Name of OrganizationCountrySectorWhat are the three main challenges to the mobilization and leverage of public and private finance and investment to achieve SDG7 and carbon neutrality?What are three concrete measures that should be taken by governments and stakeholders to mobilize and leverage public and private finance and investment to achieve SDG7 and carbon neutrality? Please, share one example of a concrete action that can be replicated/scaled up to mobilize and leverage public and private finance and investment to achieve SDG7 and carbon neutrality.
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Ente Vasco de la EnergíaEspañaOther stakeholders active in areas related to sustainable development.1. Aggregating small projects in order to increase the demand and create economies of scale.
2. Involving financial actors and institutions to give value to energy efficiency.
3. Designing of new business models tailored for energy efficiency and renewable energy deployment.
1. Establishing one-stop shop services to help citizens to retrofit old, inefficient homes.
2. Information and awareness-raising steps on the associated benefits and the positive impact of energy efficiency. Monetize those benefits (health, social impact, energy poverty mitigation, etc.)
3. Supporting the introduction of ESCO services in the buildings owned by public institutions and actors.
EKIOLA is an initiative based on the empowerment of citizens in the generation and management of renewable energy for consumption. This is done through the new figures of active consumer and energy community. The creation of energy communities in a cooperative format, which act and play a role within the electric system and which are followed by their local and nearest public administrations, will allow for the development of different projects for photovoltaic power generation facilities.
More info: Link 1, Link 2
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SUNY ESFUnited StatesEducation & Academic Entities1. Reduced government spending in developing countries
2. Declining profits coming from CERs in CDM projects
3. Lack of government support in terms of long-term planning and technical assistance
1. Rely on multilaterals and south-south cooperation
2. Evaluate the results of CDM projects
3. Politicians comit to long-term planning over short-term results to win elections
The National Strategy for the Energy Mix in Ecuador plans to obtain 80% of electricity from renewables by 2022. Large scale projects have been financed by multilaterals and the Chinese government.
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IberdrolaSpainBusiness & Industry1. Climate energy targets and regulatory frameworks (enabling environment) are not aligned with these goals (e.g. carbon pricing schemes are not robust enough in some jurisdictions, a huge amount of fossil fuels subsidies remain in place at global level...). Attracting private financing depends on regulatory frameworks in areas such as infrastructure, planning, fiscal incentives and market and administrative issues.
2. Fiscal constraints, liquidity challenges and political priorities misaligned with climate goals in some contexts. These could jeopardize a green recovery approach in the COVID-19 recovery stimulus plans.
3. Low carbon investments tend to have higher upfront capital intensity which could represent a challenge in some contexts where higher risks are perceived by investors community (regulatory uncertainties, negative risk reward dynamics…). The challenge is to develop effective tools to derisk investments to attract finance.
1. Ambitious approach towards climate goals:
• Ambitious approach to implement deep decarbonization policy roadmaps aligned with the climate neutrality goal by 2050.
• Intermediate targets aligned with climate neutrality by 2050, accompanied by the consequent updated climate and energy policy framework.
• Reinforced collaboration between players at global level to drive a cooperative approach to global climate ambition.
2. Enabling policy environment to accelerate green investments:
• Stable and robust regulatory framework aligned with climate neutrality is much needed to tackle the investment challenge ahead.
• Smooth and streamlined administrative and permitting process for “green investments” to catch up with the ambitious investment pathways needed to meet climate neutrality by 2050.
• Public – private collaboration and enabling policy environments for energy infrastructure investments will be crucial for a fully decarbonized EU energy sector by 2050.
• Fine-tuned electricity market design to accommodate high share of renewables.
• Increased R&D of zero-emission energies with higher potential, e.g. green hydrogen.
3. Robust carbon price signals & taxation aligned with “polluter pays principle”
• Revision of the Taxation to align it with climate targets and avoid distortions:
o All energies should fully internalize their carbon footprint and other externalities,
following the ‘polluter pays’ principle.
o Elimination of all fossil fuel subsidies.
The EU Regulation on the Governance of the Energy Union constitutes a very useful example as it sets common rules for planning, reporting and monitoring, ensuring that EU planning and reporting on energy and climate action are synchronized with the ambition cycles under the Paris Agreement. Within this framework, EU Member States develop integrated national energy and climate plans based on a common template. The plans cover the five dimensions: decarbonisation (greenhouse gas reduction and renewables); energy security energy efficiency; internal energy market; and research, innovation and competitiveness. Member States are also required to develop national long-term strategies and ensure consistency between these strategies and their national energy and climate plans.
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ICLEI World SecretariatGermanyNon-Governmental Organization1. Delayed access to finance, despite having considerable funds allocated to tackling climate change
2. Financial assistance programs for clean energy projects are often too complicated, especially considering the limited capacity at subnational level to develop, apply for, manage, monitor, evaluate and report on clean energy projects
3. Continued subsidies and investment into fossil fuels
1. Changing funding priorities at the national level - leading by example
2. Providing tax rebates on installing renewable energy and increasing taxes on fossil fuel related installation / usage
3. Embed clean energy projects in long term local plans and strategies with the active engagement of stakeholders
Led by ICLEI and supported by 14 partners, the Transformative Actions Program (TAP) helps subnational transform their low-emission and resilient development infrastructure concepts into mature, robust and bankable projects ready for financing and implementation. Since 2015 TAP has supported 17 clean energy projects to access finance, mitigating 11,924,215 tCO2e.
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Universal Versatile SocietyIndiaNon-Governmental Organization1. Public investment is often focused only on large-scale projects, such as centralised grid expansion, whereas the most cost-effective interventions to enable energy access are often off-grid or mini grid solutions.

2. There is a lack of micro-finance and crowdfunding initiatives. This could help last-mile communities to purchase renewable energy systems which often incur high upfront costs.

3. Clear guidance on project performance monitoring is missing. This could help investors to track and justify their ESG investments or carbon offset purchases.
1. Public investment should focus more on off-grid solutions to improve energy access rather than focusing only on large centralised grid expansions.

2. More crowdfunding / small-scale investment platforms need to be established to support innovative energy access projects. There seems to be an appetite in the global north for individual investors in getting directly involved in tangible projects that make a difference.

3. Public and private investment bodies need to acknowledge that access to clean cooking is as important as electricity access. It can support gender equality and significantly improve people's health and wellbeing (as well as reducing deforestation). Appropriate monitoring of project performance (e.g. emissions or trees saved) could increase the uptake of these projects.
Investment initiative like Energise Africa or Lendahand have been a great success. They enable individuals in Europe to purchase bonds to invest directly in projects in the global south and track their positive impact on the communities. In return, companies and social enterprises can access this capital which would otherwise be difficult in their country of operation.
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ICLEI AfricaSouth AfricaNon-Governmental Organization1. A lack of capacity and knowledge of how to leverage public and private finance at all levels of government.
2. The inability for many African cities to receive investment directly, without it needing to either be approved or in most cases flow directly through national government.
3. The length of time between the approval of international finance and funding and the city/national government actually receiving the finance/funds.
1. Work with city networks, such as ICLEI, to upskill local governments in how to leverage finance.
2. National governments to consider creating an enabling environment for finance to flow to the local level.
3. Solutions to decreasing the current inefficiencies of international climate finance need to be considered and implemented to increase the rate and scale of the implementation of climate projects.
Led by ICLEI and supported by 14 partners, the Transformative Actions Program (TAP) helps subnational transform their low-emission and resilient development infrastructure concepts into mature, robust and bankable projects ready for financing and implementation. Since 2015 TAP has supported 17 clean energy projects to access finance, mitigating 11,924,215 tCO2e.
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BirdLife InternationalUnited KingdomNon-Governmental Organization1. The continued provision of economic incentives and subsidies to fossil fuel initiatives.
2. Poor (or absent) social and environmental safeguards for financial investments or stimulus packages.
3. A lack of robust and secure finance available for all parts of the globe to develop inclusive, just and nature-friendly renewable energy.
1. Incentives: The scaling up of climate and nature-friendly economic incentives and regulations around the world in order to tackle the climate threat facing nature and people. Investments should be directed towards energy saving, technology transfer and low carbon energy supply, in particular cost-competitive, inclusive, sustainable and nature-friendly renewable energy sources. Action must ensure the phasing out of perverse subsidies to fossil fuel initiatives.
2. Green recovery: Global recovery measures from the COVID-19 pandemic should mobilise funding mechanisms for a green, equitable and resilient future. Renewable energy can help revitalize the economy by generating green jobs, ensuring energy security, improving clean air and strengthening resilience. Financing is needed at a more strategic level to support the integration of the data, tools, guidance. Multi-stakeholder processes and a renewable energy led green recovery must also be nature friendly and ensure appropriate regulations and safeguards are in place.
3. Financing data: Investment in datasets and data management systems, whilst developing capacity and harmonising monitoring and indicators. Resources and funding also need to be more inclusive and accessible to civil society, which ultimately collects and manages much of the data needed for government and industry decision-making (e.g. biodiversity baseline data) but often on a voluntary or project-to-project, hand-to-mouth basis.
Stimulus packages and structural change for inclusive, sustainable and nature-friendly renewable energy as part of national/regional green recovery mechanisms.
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Grameen ShaktiBangladeshNon-Governmental Organization1. Lack of trust and confidence of Financial Sector in financing RE projects
2. Long payback period increases investment risk
3. absence of proper financial model
1. Policy measures and insurance for risk coverage of RE projects for better financial confidence
2. Policy and insurance tools to cover long pay back risk
3. Sustainable and replicated financial model of different renewable energy/ energy efficiency technologies needs to be developed and proper scale-up.
Net metering policy in Bangladesh where utility is blinded to take measures for non-payment of solar rooftop tariff.
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MOUSSTAKBALNEGOCEBurkina FasoBusiness & Industry- Corruption and administrative slowness in the release of funds.

- Problem of organization and structuring of projects for the mobilization of funds to be allocated according to priority projects.

- Lack of transparency and investment monitoring data.

1. Identify prior energy projects in which investments have to urgently be and promote the establishment of green public and private funds

2, Establish transparent investments public data monitoring platform and governance in order to follow-up investments
3.Prioritize investment on green innovative energy projects by cutting down progressively fossil fuels investments
Promote new equity green private funds
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Centro para la Autonomía y Desarrollo de los Pueblos Indígenas - CADPI Nicaragua Indigenous Peoples1. lack of social and environmental safeguards in public/private finance investment actions
2. financing structures that are not very accessible to indigenous peoples
3. lack of right based approach in financial mechanism
1. dedicated grand mechanism for Indigenous Peoples related to the implementation of SDG7
2. Finance mechanism and action that take into account the human right based approach and establish robust social and environmental safeguard in place.
3.
The Indigenous People Major Group (IPMG) has defined an agreement with the GEF small grants program managed by UNDP to enable indigenous organizations to access funding for the implementation of SDG7 in different countries in Africa, Asia and Latin America. This is a good example to follow and can be scaled up in other funding spaces to scale up the implementation of SDG7, with the active and effective participation of Indigenous Peoples. there are other mechanisms that allow direct access to funds, from which lessons can be learned to create more inclusive mechanisms for the most marginalized groups. It's important raise that these examples respect the visión and led action of indigenous peoples in the process.
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KINDERENERGYUSAEDU,GREEN INNOV & TECH FOR KIDS & FORESTSLack of government and private investment interest support for innovative CO2 tech solutions designed kids to foster forest growth for education of children. CO2 tracker that finances Children's Forest Fund
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Innovea Development FoundationNigeriaEducation, Clean and Renewable Energy, Policies, CITIES1) Lack of Streamline focus to specific infrastuctural priorities at it suits the just transition mandate 2) Policy failure 3) Lack of monitoring and coordination for existing financial instrumentsDeveloping a multi stakeholder framework for carbon finance and carbon pricing which are not only infrastructure specific but have co benefits on impacts in areas of mitigation and adaptation. 2) Well structured policy governance targeted towards development of carbon meutralization technologies and circularity 3) Strict debt profiling managementThe EU Green deal from the EU-AU Partnership as well as efforts from The IFC and The World Bank can better be leveraged for OECD countries. Also The GCF and GEF Facilities are wonderful interventions.
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