Fueling Change: Transformative Role of DFIs in Funding Energy Transition in Developing Asia
Energy transition is critical for achieving the world’s net zero targets. In response, global financial commitment towards energy transition (across capacity addition and transformation of energy systems) touched a high of US $1.3 trillion in 2022. However, this needs to increase by at least 3.3X from current levels. Further, in Asian developing countries, energy access and small-scale energy solutions are much needed, aside from large-scale utility projects. Such nuances further complicate the challenge. Towards this, while commercial finance has a track-record in funding utility-scale solar and onshore wind projects, proven business models in energy efficiency, transformation of existing energy systems, and other segments of clean energy are still evolving. As a result, DFIs need to play a transformative role by deploying capital innovatively, so that they help reduce the risks perceived in such sectors. This would enable the mobilization of commercial capital at scale.
Therefore, under the aegis of Climate Week New York, ADFIAP, auctusESG, ADFIM, IEEFA and Closing the Investment Gap (CIG) are organizing a virtual session on “Fueling Change: Transformative Role of DFIs in Funding Energy Transition in Developing Asia” on Wednesday, 20th September 2023 from 12:00 PM – 1:45 PM (IST) / 08:30 AM – 10:15 AM (CET) / 02:30 PM – 04:15 PM (PHT/MST). The webinar would feature a panel discussion, with experts from energy and finance sectors deliberating critical questions, including:
• Overcoming challenges related to identifying and analyzing energy transition projects
• Structuring innovative mechanisms using DFI capital, to reduce risks for commercial capital
• Leveraging blended finance structures, particularly for small-scale energy transition solutions
• Collaboration between DFIs, governments, private sector, and CSOs to accelerate transition
• Addressing policy/regulatory barriers, that hinder DFIs from financing energy transition
• Unlocking lending resources through proposed reforms to MDB capital adequacy frameworks
• Transforming regional DFIs to play a larger role in climate finance towards developing Asia