Today, a thorough analysis on how low-cost financing may quicken the energy transition was issued by the International Renewable Energy Agency (IRENA) in collaboration with the Indian G20 Presidency.
According to an IRENA message received here today, the low-cost energy transition finance report provides a toolbox to increase the availability of low-cost capital in G20 countries and beyond.
IRENA’s Deputy Director-General Gauri Singh introduced the report, alongside the Ministry of New and Renewable Energy (MNRE) Secretary Bhupinder S Bhalla and India’s Power Secretary Alok Kumar.
The report unveiling ceremony held at a side-event, jointly organized by MNRE and the Indian Renewable Energy Development Agency, during the G20’s 3rd Energy Transition Working Group (ETWG) meeting in Mumbai.
IRENA Director-General Francesco La Camera said: “The global energy transition requires a rapid scale-up of renewable energy deployment globally, making access to the low-cost finance urgently vital. We are proud to contribute to the work of the G20 and provide valuable insights that support India’s Presidency in facilitating access to the affordable finance in developing and advanced economies.”
According to the IRENA’s preview of the World Energy Transitions Outlook, to meet the 1.5°C climate goal, the renewable energy share in the primary energy mix should rise to the about three-quarters, necessitating annual investments averaging over 5 trillion US dollars until 2030. However, the access to funding in many emerging and low-income economies is insufficient and often too costly, to accelerate the energy transition at the necessary rate.
The report listed enabling frameworks that can reduce the transaction costs of technology transfers and facilitate foreign direct investments (FDI) to accelerate the scale-up of hydrogen, offshore wind and battery storage – critical technologies for the next stage of the energy transition.
Innovation frameworks can drive the improvements in enabling technologies, business models, market design and system operation, according to the report.
The low-cost financing is identified as one of the six key priority areas established by India’s G20 Presidency.