Scaling Investment in Renewable Energy Generation to Achieve Sustainable Development Goals 7 (Affordable and Clean Energy) and 13 (Climate Action) and the Paris Agreement: Roadblocks and Drivers

Abstract

The zero-carbon energy transition is the solution to the 2022 energy crisis and a fundamental part of the solution to the global climate crisis. But there are relatively low levels of investment in renewable energy in developing countries, hindering their achievement of the Sustainable Development Goals (SDGs) and contribution to the Paris Agreement goals. There is therefore an urgent need to scale public and private finance for investment in renewable electricity generation, network infrastructure, and end-use sectors. Five main roadblocks in the way are identified: Developing countries lack the necessary access to low-cost capital to invest in renewables. There is a lack of investment in grid and storage infrastructure and a lack of solutions addressing the off-taker risk. There are insufficient domestic regulatory frameworks for renewable electricity and ill-designed incentives as well as an under-developed institutional capability. Existing regulatory frameworks—in law, contract, and investment treaties—can limit developing country governments’ policy space to implement and adapt policies to promote and leverage investment in renewables. Developing countries’ national energy roadmaps and master plans are either non-existent or ill-designed. The CCSI reports not only identify these roadblocks, but also provide solutions to drive investment in renewables. The report sheds light on the five roadblocks and provides recommendations for the drivers of investment in renewables while distilling solutions from international experience. It clarifies where international and national efforts should urgently be focused to address the deterrents of investment in renewables and enable zero-carbon energy security and prosperity.