Energy is at the centre of development and is intrinsically linked to countries’ economic and social progress, laying a basis for more productive economies. Broad-based access to clean, reliable and affordable energy, as summarised under SDG 7, is crucial to foster economic development. Meanwhile, the use of clean energy sources can help to ensure that such economic development is sustainable and compatible with Paris agreement goals avoiding further environmental degradation putting progress in developing countries at risk. Moreover, it can offer opportunities for job creation, if paired with sound policies that enable people to participate.
From a consumer point of view, too, promoting access to clean energy is critical considering that in least developed countries large parts of the population are still living without any or only very limited access to electricity. Charcoal or animal waste used as fuels in the absence of clean cooking and heating technologies are only further contributing to pollution, which in turn is adversely impacting climate and environment.
The private sector can take a crucial place in the energy development process as accelerator of the transition process, by investing in necessary infrastructure, research & development, as well as in new and innovative solutions that foster the adoption of energy efficiency and renewable energy. However, adverse host country prerequisites and challenging risk-return scenarios that impede access to finance can pose significant obstacles to such beneficial engagement.
The purpose of the meeting was to disentangle and discuss the success factors and host country prerequisites for positive private sector engagement – including in the context of innovative financial instruments such as blended finance. The event also explored, with case studies and expert presentations, approaches and instruments to leverage private investment and private finance that promotes access to affordable and clean energy in developing countries.