Creating Enabling Environments for Private Sector … · Creating Enabling Environments for Private...

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CreatingEnablingEnvironmentsforPrivateSectorFinanceforRenewableEnergyinAfrica16.00–17.30Salle2Hostedby:AfDBPanelists:GarethPhillips,AFDB;Jan-WillemvanderVen,EBRD;PhilippHauser,GDFSuez;AssaadRazzouk,Chairman,ASrIA,TheAssociationforSustainable&ResponsibleInvestmentinAsia;MafaldaDuarte,ManagingDirectorClimateInvestmentFund;KurtLonsway,AfDBHundredsofbillionsofUSDarerequired,eachyear,tostarttobuildtheinfrastructurerequiredtomovedevelopingcountriesontoacleanandlowcarbondevelopmentpathway.Infact,somuchmoneyisrequiredthatthe$100bnayearby2020pledgedinCopenhagenseemsratherinsignificant.Whateverthefigure,itmustbecleartomostthatallthismoneywillnotcomefromGovernments;asignificantamountwillcomefromthePrivateSector.PrivateSectorinvestmentisdrivenbyrisk–thehighertherisk,thecostlierthemoney.Wecanbroadlydistinguishbetweentechnicalrisks,whichinvestorscanaddressandmanage,politicalriskssomeofwhichcanbemanaged,andinsomesectors,climaterisk.Whentheun-manageablerisksbecometoohigh,themoneystaysaway.Developingcountrygovernments,donorsanddevelopmentbanks,canworktogethertoovercomesuchunmanageablerisksandcreate“enablingenvironments”inwhichprivatesectorinvestorscanfeelmorecomfortable.Forexample,theCDMwasaninternationalenablingmechanismwhichcreateda$500bnpipelineofdevelopmentprojectsbyprovidingprivatesectorinvestorswithadditionalsourcesofrevenuetooffsethigherrisks.WhatarethekeyrequirementstocreateenablingenvironmentsinAfricathatwillencouragethePrivateSectortoinvestinAfrica’smassiverenewableenergyresources?Whatshouldgovernments,donorsanddevelopmentbanksbedoingtobreakdownthebarriers?Whatlessonshavewelearntandwhatmistakesshouldweavoid?

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