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The world is at critical crossroads for the future of energy. Climate change, increasing dependence on oil and other fossil fuels, growing imports, and rising energy costs are making the developing world more vulnerable than ever before. These challenges call for a comprehensive and ambitious response. The renewable energy sector is the one energy sector that stands out—for its ability to reduce greenhouse gas emissions and pollution and to exploit local and decentralized energy sources— wind, solar, hydro-electric, tidal, geothermal, and biomass. These renewable sources are immune to the volatility of the fossil fuel markets and bring the added benefits of stimulating employment, technological development, and economic growth. There is no doubt that renewable energies constitute a key element of a sustainable future. This is why renewable energy has been a fundamental pillar of the operations of the Global Environment Facility (GEF). Over the past 18 years, the GEF has demonstrated unique leadership by investing US$1.1 billion in renewable energy initiatives in almost 100 developing countries and economies in transition. These investments have been augmented by an additional US$8.3 billion in cofinancing. GEF support has been instrumental in putting renewable energy on the agenda of all major developing countries and emerging economies, from China to India, from Argentina to Brazil, from Mexico to South Africa, from Morocco to Turkey, from Russia to Romania, and from Barbados to Tuvalu. The GEF has promoted the demonstration, deployment, diffusion, and transfer of renewable energy technologies (RETs) in all levels of society—cook stoves and lighting at household levels; minigrids for communities; grid-connected bulk power for countries. These initiatives have helped the GEF become the largest public sector renewable energy technology transfer mechanism in the world, with investments that have contributed to the installation of 3 GW electric and 2.8 GW thermal of renewable energy capacity, resulting in an estimated direct avoidance of 290 million tonnes CO2 over time. Through catalytic effects and replication, indirect Greenhouse Gas emission reductions are estimated to be 1.2 billion tonnes of CO2. The GEF was among the first to support market transformation for RETs and practices. GEF support has helped developing countries develop and apply effective RET promotion policies. One example is GEF support for the successful expansion of the renewable electricity market in China. The regulations and policy changes put in place have provided remarkable results and will yield benefits for decades to come. The GEF has also been at the forefront of advancing innovative market-based mechanisms and financial instruments to promote renewable energy, including energy service companies, partial-risk guarantees, and revolving and equity funds. The GEF has also been a pioneer in the demonstration and deployment of new, precommercial RETs in developing countries. The most significant technology to receive support has been concentrating solar power (CSP). Support in such projects focuses on investments and on ensuring the technologies are demonstrated and deployed with a view toward future commercialization. The GEF’s work in renewable energy and climate change has benefited the 2 billion people in the developing world who lack adequate energy services and rely on traditional biomass to meet their basic energy needs. Examples include GEF leadership in financing and disseminating solar home systems, solar lanterns, and renewable power for water and irrigation pumps in Sub-Saharan Africa and South Asia and help provided to many utilities in developing countries to increase their capabilities and capacities to operate and integrate renewable power generation into existing facilities and grids. The GEF remains committed to promoting renewable energy in developing countries and economies in transition as an essential component of sustainable development that can face the climate change challenge. We hope that the following pages will help readers gain a better understanding of our efforts in the field of renewable energy, and will inspire enthusiasm and more successes. INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE 1PDF Image | INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE
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