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Climate Investment Funds: The quiet motor behind our most impactful climate investments

John Roome's picture

It does not happen often that one of the finest actors of our time tweets about a World Bank supported project and invites all his fans to have a look at the impressive pictures taken from space. In fact, I can’t remember having seen that before.
 
But this is what Oscar winner and climate activist Leonardo DiCaprio did a few months ago when the Noor Concentrated Solar Plant (CSP) in Morocco—the largest CSP plant in the world - was opened. Once finalized, in two years, it will provide clean energy to 1.1 million households. I visited the plant two weeks ago and it is truly an impressive site. The indirect benefits of the project might even be larger: it has advanced an important and innovative technology, it has driven down costs of CSP, and it holds important lessons for how public and private sectors can work together in the future.
 
I am proud that the World Bank, jointly with the African Development Bank and a number of foreign investors, supported this cutting-edge solar energy project. But it was made possible thanks to the Climate Investment Funds (CIF), which put in US$435 million to “de-risk” the investment, playing an essential role to kickstart the deal. 

De-risking climate-smart investments

Rachel Stern's picture
 CIF / World Bank
The city of Ouarzazate in Morocco will host what will become one of the largest solar power plants in the world. Photo: CIF / World Bank


The investment needs for low-carbon, climate-resilience growth are substantial. Public resources can bridge viability gaps and cover risks that private actors are unable or unwilling to bear, while the private sector can bring the financial flows and innovation required to sustain progress. For this partnership to reach its full potential, investors need to be provided with the necessary signals, enabling environments, and incentives to confidently invest in emerging economies.  

Lighting rural Bangladesh with rooftop solar & carbon credits

Xiaoyu Chang's picture
Installing a solar panel in Bangladesh. Xiaoyu Chang/World Bank



In the village of Aharkandhi in northeastern Bangladesh, life has changed since homeowners began installing solar panels on their roofs. At night, families gather at the local grocery store to watch TV, which boosts business. Children study longer than before.
 
This is due in part to a World Bank-financed electrification project to promote off-grid electricity in rural communities. This year, the project became the first renewable energy program in Bangladesh to be issued carbon credits for lowering greenhouse gas emissions and the world's first Programme of Activities for solar home systems under the UNFCCC’s Clean Development Mechanism (CDM) to generate carbon credits.
 
With access to electricity, people are finding new ways to increase their income, and the word is spreading quickly across villages.

Behind the numbers: China-U.S. climate announcement's implications for China’s development pathway

Xueman Wang's picture
Solar cell manufacturing in China


The past five weeks have given us what may be defining moments on the road to a Paris agreement that will lay a foundation for a future climate regime.

  • On October 23, European Union leaders committed to reduce greenhouse gas emissions by at least 40 percent by 2030 and increase energy efficiency and renewable energy use by at least 27 percent by 2030.
  • On November 12, during the APEC Summit in Beijing, Chinese President Xi Jinping and United States President Barack Obama jointly announced their post-2020 climate mitigation targets: China intends to achieve peak CO2 emissions around 2030, with best efforts to peak as early as possible, and increase its non-fossil fuel share of all energy to 20 percent by 2030; and the U.S. agreed to cut emissions by 26-28 percent below 2005 levels by 2025.
  • On November 20, at the donor conference in Berlin, led by the U.S., Germany, and others, donors pledged about US$9.3 billion to the Green Climate Fund (GCF).

China’s announcement in particular is considered by many to be a game changer. China, the world’s biggest emitter with its emissions accounting for more than 27 percent of the global emissions, is setting an example for other major developing countries to put forward quantifiable emission targets. The announcement will hopefully also brush away the “China excuse,” used by some developed countries that have avoided commitments on the grounds that China was not part of action under the Kyoto targets.

Carbon pricing incentivizes clean energy innovation

Kerry Adler's picture
SkyPower's Fort William First Nation Solar Park is one of the first utility-scale solar parks in North America to be developed on First Nations lands. Photo courtesy of SkyPower


By Kerry Adler, President and CEO of SkyPower

​​The fundamental inequality that exists between emitters of carbon and the victims of its devastating byproduct requires global cooperation and intervention beyond our willingness to act thus far. Today, we have the necessary technology, ingenuity and global monetary tools to incentivize a shift to cleaner energy.

Placing a price on carbon enhances the competitive position of renewable energy technologies, such as utility-scale solar, relative to fossil energy, thus encouraging migration away from high-carbon fuels. It is an important step, and it can be supported with other initiatives to ensure accountability.

In the private sector, transparency regarding carbon emissions is essential. With the advent of the Internet and the plethora of information available today, it is not only possible, but imperative that emitters of carbon are held accountable in a public forum.