(3BL Media/Justmeans) – The developing world faces challenges in raising finance for sustainable energy projects. Weaknesses in the regulatory frameworks, risk perceptions of investors, and a dearth of bankable projects limit the scope for investment in developing countries. Investors even in developed countries can face policy and regulatory challenges in financing sustainable energy. An expert report from the Sustainable Energy for All (SE4All) initiative has sought to address these challenges by outlining innovative financial mechanisms in four key areas that have the potential to boost global investment in sustainable energy by $120 billion a year in the near term. The SE4All initiative, co-chaired by the UN Secretary-General Ban Ki-moon and World Bank Group President Jim Yong Kim, addresses the challenges of energy poverty and mitigating climate change. To meet SE4All’s long-term goal of sustainable energy for all by 2030, both public and private sectors will be required to triple their investments to over $1 trillion a year. The SE4All report has been prepared by Bank of America Merrill Lynch, the Brazilian Development Bank (BNDES) and the World Bank, with inputs from experts drawn from a broad range of governments, banks, businesses, inter-governmental agencies and civil society. The report called ‘Scaling Up Finance for Sustainable Energy Investments,’ identifies four broad investment themes where action could help to drive increased investment. The first theme is further expansion of the Green Bond market to drive fresh capital into new sustainable energy investments. This effort has the potential to raise $35 billion a year. The second theme involves the development of tailored structures that enable private companies to mobilize capital using de-risking instruments of the Developing Finance Institutions (DFIs). This could help raise $30 billion a year. Innovative insurance products that focus on removing specific risks could account for $30 billion, while developing structures to enable bundling and pooling of small-scale projects could generate $25 billion a year. Kandeh Yumkella, the UN Secretary General’s Special Representative for Sustainable Energy for All and CEO of the SE4All initiative, said that a trillion-dollar need for investment is also a trillion-dollar opportunity for investment. The report shows practical ways to mobilize new sources of finance and encourage investors by helping them to manage their risks. Source: World Bank Image Credit: Flickr via GotCredit Green Companies • Cause Global • Best Practices • Social Entrepreneurship • Social InnovationFinance and SRITuesday, August 18, 2015 - 10:00am