There are no quick fixes to long-term energy challenges. To find solutions, governments and industry benefit from sharing resources and accelerating results. For this reason the IEA enables independent groups of experts - the Energy Technology Initiatives, or ETIs1.
According to the IEA World Energy Outlook, the share of global energy demand in OECD non-member countries is expected to rise by over one-third before 2035, underpinned by rising living standards in China, India and the Middle East1. The need for electricity in emerging economies will drive a 70% increase in worldwide demand, as 1.3 billion people still lack access to electricity. As a result, emerging economies will hold an increasing share of the worldwide burden to build an environmentally sound future. Efforts to share best practice, knowledge, tools and financing options with emerging economies is an important step to accelerating development and diffusion of clean technologies.
In co-operation with partner countries, international organisations, private business and financing communities, the ETI focusing on technology transfer and finance (CTI) provides a framework for governments to carry out technology needs assessments; training; access to project financing; targeted capacity building; and exchanges of experts. CTI anticipates working closely with the Technology Executive Committee and the Climate Technology Centre and Network of the United Nations Framework Convention on Climate Change (UNFCCC). There are 11 Contracting Parties.
The CTI Private Financing Advisory Network (CTI PFAN) is a global, multilateral initiative dedicated to reducing greenhouse gas emissions by bridging the gap between investors and clean energy projects in need of financing. It achieves this by identifying promising projects at an early stage of development, providing professional support and assistance through preparation of a financially sound business plan and by introducing mature projects to investors from the PFAN global network of investors and financiers.
Over the last two years the CTI PFAN Network has expanded, including four new regions: East Africa; West Africa; Central America and the Caribbean; the Commonwealth of Independent States (CIS); and Central Asia. Projects receiving CTI PFAN support have increased significantly.
By the end of 2012, CTI PFAN projects in the pipeline (proposals being processed) had increased to 164, compared to 69 in 2010. These projects represent USD 5 billion of total investments and have the potential to reduce CO2 emissions by 7.1 million tonnes per year (t/yr).
In addition, some 30 projects have reached financial closure, bringing the total amount of financing raised to USD 432 million, representing 310 MW of clean generation capacity and 1.9 million tonnes of CO2 (t/CO2) emissions mitigation potential per year.
The large majority of projects reaching financial closure by the end of 2012 focussed on biomass, energy efficiency, hydropower, and biofuels (67%), while most were located in Southeast Asia, China, and eastern and southern Africa (82%).
The CTI PFAN network of consultants, investors and resource partners (regional development banks, small power producer collectives, competence centres and green initiatives) has grown to over 100 members.
1. World Energy Outlook 2012, IEA, Paris
For more information: www.climatetech.net
1.Information or material of the IEA Energy Technology Initiatives, or ETIs (formally organised under the auspices of an Implementing Agreement), including information or material published on this website, does not necessarily represent the views or policies of the IEA Secretariat or of the IEA’s individual Member countries. The IEA does not make any representation or warranty (express or implied) in respect of such information (including as to its completeness, accuracy or non-infringement) and shall not be held liable for any use of, or reliance on, such information.