Renewable Energy Projects Secured $6 Billion From Multilateral Banks In 2015
August 28th, 2016 by Saurabh Mahapatra
Renewable energy projects across the world received funding worth $6 billion in 2015 from multilateral banks, a recent report has revealed.
The World Bank, The European Investment Bank (EIB), the Inter-American Development Bank (IDB), the Asian Development Bank (ADB), the African Development Bank (AfDB), and the European Bank for Reconstruction and Development (EBRD) provided a total of $25 billion in climate finance across the world.
Around 20% of this investment (i.e., $5 billion) went into adaptation projects, while the remaining 80% was invested into mitigation projects.
The World Bank Group — which includes International Finance Corporation, World Bank, and Multilateral Investment Guarantee Agency — led with a total investment of $10.7 billion, followed by the European Investment Bank with $5.1 billion of investment.
The renewable energy sector was the largest beneficiary of the mitigation investment made by these six banks. The sector received a total of $6 billion. The transportation sector received $5.3 billion, followed by energy efficiency at $2.8 billion.
Within the mitigation investment, non-EU Europe and Central Asia received 24% (or $4.7 billion) of the total $20 billion, while East Asia and Pacific, EU11, and South Asia received around $3 billion each. The Middle East and North Africa combined with sub-Saharan Africa received a total investment of almost $3 billion.
With solar power tariffs becoming increasingly competitive across the world – be it the Middle East, India, or Latin America – project developers are expected to look for more funding from multilateral banks which provide debt funding at very low cost.
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