15 November 2018
Finance to Close Global Energy Access Gaps to Meet SDG 7 Insufficient, SEforALL Report Warns
UN Photo/Kibae Park/Sipa Press
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The report finds that committed finance stands at only half of the US$52 billion required annually to achieve universal electricity access.

For the second year in a row, finance committed across the 20 countries accounting for nearly 80 percent of those living without energy access went down.

At the same time, finance for coal-powered energy has been on the rise, with annual commitments up from US$2.8 billion to US$6.8 billion.

12 November 2018: Financial commitments to achieve universal access to electricity and clean cooking are still falling “far short” of what is required to meet global energy goals by 2030, according to report released by Sustainable Energy for All (SEforALL), which analyzes finance flows for electricity and clean cooking access in African and Asian countries with the greatest access gaps.

The report titled, ‘Energizing Finance: Understanding the Landscape 2018,’ highlights areas related to financing energy access that require urgent action to achieve SDG 7 (affordable and clean energy). It notes that committed finance stands at only half of the US$52 billion required annually to achieve universal electricity access. The report warns that funding for clean cooking has declined, accounting for less than one percent of projected funding needed to stop the millions of deaths caused annually by traditional biomass cooking.

The report aims to help finance institutions and policymakers develop and implement strategies that can be scaled and refined to increase affordability and accessibility of clean and sustainable energy. It provides evidence that finance sources considered the most efficient for unlocking greater capital, such as concessional development finance, are decreasing rather than increasing. For example, concessional development finance for electrification decreased by 7 percent to US$4.8 billion.

Concessional development finance for electrification is decreasing.

According to the publication, for the second year in a row, finance committed across the 20 countries accounting for nearly 80 percent of those living without energy access went down. At the same time, finance for coal-powered energy has been on the rise, with annual commitments up from US$2.8 billion to US$6.8 billion.

Speaking about the report, Rachel Kyte, SEforALL CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, underscored the need for a strong project pipeline and sufficient levels of public investment to “crowd in private finance.”

Other key findings from the report include: off-grid solutions remain off-track; solar financing is increasing; two thirds of all electricity finance tracked was concentrated in South Asia, mainly in India; and investment favors non-residential customers.

The report calls for urgent action and recommends that:

  • international public financial institutions fulfill their commitments to close financing gaps for electricity access;
  • policymakers prioritize non-coal fired or fossil fuel power generation as part of their integrated energy planning and investment processes;
  • governments adopt integrated approaches to energy sector policy, planning and regulation; and
  • leaders, especially in Sub-Saharan Africa, use a combination of policy, financial instruments and business model innovation to achieve “last mile access.”

Research for the report was undertaken in partnership with the Climate Policy Initiative. The EU provided financial assistance. [Publication: Energizing Finance: Understanding the Landscape 2018] [Executive Summary] [Publication Landing Page] [SEforALL Press Release]

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