Sustainability solutions provider, South Pole, the ASEAN Centre for Energy (ACE) and the German development agency, GIZ are at the helm of a new research project providing solutions to energy efficiency and conservation (EE&C) and renewable energy (RE) financing barriers in Association of Southeast Asian Nations (ASEAN) member states.
This is the first undertaking of a comprehensive study into the EE&C and RE landscape in ASEAN member states, which is crucial in overcoming the current gap in knowledge and information about financing energy solutions across Southeast Asia, and reveals shared barriers to financing such projects exist across the region.
Regional challenges include high costs due to limited access to funding; underdeveloped markets and financial institutions' limited know-how and capacity regarding EE&C and RE projects (particularly true in Cambodia, Laos and Myanmar); the dominance of powerful fossil fuel players; and subsidised electricity tariffs that artificially make renewables non-competitive and do not reward energy saving investments.
To overcome these barriers, the research recommends sharing of best practice financial instruments across the region, and developing innovative financial instruments and mechanisms such as RE and EE&C insurance and guarantee products, green bond initiatives, dedicated RE and EE&C credit lines and loan guarantees programmes, and crowd- and community-funding, among others.
Identifying and overcoming barriers to energy efficiency and renewable energy financing is crucial in reducing energy intensity, meeting demands, and keeping ASEAN member states on a path of continued, low-carbon economic growth.
The studies produced several publications on EE&C and RE financing topics, including:
A further two papers on renewable energy will be published soon:
Interested in learning more about South Pole's work and research on renewable energy and energy efficiency financing in Southeast Asia? Meet our team on the ground at the World Bank's Innovate4Climate in Singapore from 4-6 June, or learn more about our renewable energy solutions here.