IEEFA Global: A $51 Billion Gap (and a $51 Billion Opportunity) in BRICS Nations’ Renewable Energy Development

While some $130 billion was invested last year in renewable-energy development in the BRICS countries—Brazil, Russia, India, China, and South Africa—billions more are required if these countries are to meet their commitments to climate-change mitigation policies.

The four countries, in all, have announced goals that will require an annual investment over the next few years of $177 billion. As the chart here shows, there’s a gap between what’s being spent and what is required.

How to bridge this gap?

2016-10-12-ieefa-sharda-brics-investments-535x440-v1

We see important stakes being taken by development banks that include the New Development Bank (NDB), which really is new. It is a jointly owned and operated bank funded by the five BRICS nations, and this year made its first loans.

Such efforts aren’t enough, though, and in a research brief we just posted, we note the importance of private-public partnerships, or “blended finance.”

Under the “blended finance” model, public capital can catalyze much larger private investment in renewables. By our lights, every $1 set up through such models to fund infrastructure projects in developing countries and promote sustainable development will draw $4 in private investment.

The caveat is that publicly financed banks like NDB invest appropriately, putting dollars into energy projects that are truly sustainable and that do not rely on outdated fossil-fuel development.

 

Source: http://ieefa.org/51-billion-gap-51-billion-opportunity-brics-nations-renewable-energy-development/

SMART GRID Bulletin November 2017


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