![\"\"](\"https:\/\/www.carilec.org\/wp-content\/uploads\/2023\/04\/Capture-World-Bank-300x200.png\")
<\/p>\nApril 23, 2023<\/p>\n
<\/p>\n
The World Bank has called for the \u201cscaling up\u201d of energy efficiency and renewable energy in the Caribbean and other developing countries, saying that energy transition will require unprecedented transformation of the power sector infrastructure.<\/p>\n
The Washington-based financial institution also called for \u201ca phasing down\u201d of coal-fired power generation.<\/p>\n
It said the proposed new framework, entitled \u201cScaling Up to Phase Down\u201d, serves as \u201ca roadmap to identify financing challenges and develop a comprehensive financing approach.\u201d<\/p>\n
\u201cWithout the means to fund an energy transition and network infrastructure, developing countries often pay more for electricity; they cannot access energy efficiency or renewable energy projects; and are locked into fossil fuel projects with high and volatile costs,\u201d said the World Bank in a statement. \u201cIn essence, they face a triple penalty for their energy transition that becomes a poverty trap.\u201d<\/p>\n
The World Bank Group estimated that low- and middle-income countries host 89 per cent of the aboutUS$1 trillion in global coal-fired power generation at risk of being stranded.<\/p>\n
It said funding for a just power transition will require \u201cmuch higher capital flows than are being mobilised today in order to meet the growth needed in lower carbon electricity production.\u201d<\/p>\n
\u201cAccelerating the energy transition toward lower carbon sources while providing reliable access to electricity for businesses and people will require verifiable emission reduction financing, close partnership with the private sector, and significantly higher funding, especially concessional resources,\u201d said World Bank Group President David Malpass.<\/p>\n
\u201cThe World Bank Group is supporting reforms to strengthen the energy sector and business environment, investments in new capacity and energy efficiency, grid upgrades to absorb intermittent renewables, and funding and technical support to address the social challenges of the transition,\u201d he added.<\/p>\n
The World Bank said \u201cScaling Up to Phase Down\u201d sets out the challenges facing developing countries seeking to transition their power sectors in order to identify pathways to address these issues.<\/p>\n
It said three key barriers prevent Caribbean and other developing countries from accelerating their energy transition.<\/p>\n
\u201cFirst, renewable energy projects entail prohibitively high upfront capital costs, and many countries lock themselves into costly and high carbon energy choices with inefficient energy subsidies,\u201d the World Bank said. \u201cSecond, developing countries face a high cost of capital that distorts their investment choices away from renewables.<\/p>\n
\u201cAnd third, weak energy sector fundamentals\u2014especially institutional capacities\u2014hinder the scaling of the transition,\u201d the World Bank added.<\/p>\n
It said the framework distils the energy transition into a \u201cvirtuous cycle\u201d of six steps that are foundational for overcoming barriers to renewable energy.<\/p>\n
The World Bank said the cycle starts with government leadership, which is translated to a supportive regulatory environment, increasingly capable institutions, and instruments to minimise risks, followed by transparent and competitive project allocation, \u201cwhich can deliver renewable energy that serves urgent needs, including energy security, energy affordability and jobs.\u201d<\/p>\n
\u201cWidespread energy transformation in developing countries requires continuous, strategic engagement and far more coordination among governments, investors, and partners than exists presently,\u201d said Guangzhe Chen, World Bank vice president for Infrastructure.<\/p>\n
\u201cThe World Bank can play a vital role in getting the virtuous cycle started through supporting governments with low-cost and concessional climate finance for transition preparation, utility and network strengthening, and funding affordable clean energy investments.\u201d<\/p>\n
The World Bank said the \u201cScaling Up to Phase Down\u201d approach also offers solutions for the politically and financially complex challenge of phasing out coal-fired power.<\/p>\n
\u201cDeeper planning can help mitigate stranded asset risks,\u201d it said. \u201cRefinancing of coal plant liabilities can move retirement dates forward. Workers and communities that base their livelihoods on the coal economy must be ensured a just transition.<\/p>\n
\u201cConcessional support is needed to help countries capture more of the global benefits associated with coal phase down as a global public good,\u201d the statement noted.<\/p>\n
SOURCE: April 23, 2023 The World Bank has called for the \u201cscaling up\u201d of energy efficiency and renewable energy in the […]<\/p>\n","protected":false},"author":165,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4587],"tags":[],"class_list":["post-80849","post","type-post","status-publish","format-standard","hentry","category-careep-news"],"acf":[],"aioseo_notices":[],"featured_image":"https:\/\/carilec.org\/wp-includes\/images\/media\/default.svg","month_date":"Apr","day_date":"26","_links":{"self":[{"href":"https:\/\/carilec.org\/api\/wp\/v2\/posts\/80849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/carilec.org\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carilec.org\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carilec.org\/api\/wp\/v2\/users\/165"}],"replies":[{"embeddable":true,"href":"https:\/\/carilec.org\/api\/wp\/v2\/comments?post=80849"}],"version-history":[{"count":0,"href":"https:\/\/carilec.org\/api\/wp\/v2\/posts\/80849\/revisions"}],"wp:attachment":[{"href":"https:\/\/carilec.org\/api\/wp\/v2\/media?parent=80849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carilec.org\/api\/wp\/v2\/categories?post=80849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carilec.org\/api\/wp\/v2\/tags?post=80849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.carilec.org\/wp-content\/uploads\/2023\/04\/Capture-Caribbean-300x125.png\")
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