Sergio Jellinek +1-202-458-2841
Kristyn Ebro +1-202-458-2736Accomplishments during FY05 (July 2004-June 2005) include:
· In fiscal year 2005, World Bank Group support for renewable energy (RE) and energy efficiency (EE) totaled $748 million, which includes:
Ø $449 million for hydro larger than 10 MW per facility.
Ø $212 million for “new” RE (wind, solar, geothermal, biomass, and hydropower with a capacity of 10 MW or less per facility)
Ø $87 million for EE
Ø A total of 36 RE and EE projects in 28 countries were supported
Ø Each dollar of World Bank Group commitment in RE and EE projects leveraged an average of nearly five dollars from private investors, governments, and other donors.
· The commitment of $748 million for RE and EE is 2.2 times the commitment made in fiscal year 2004 of $339 million for RE and EE. By organizational unit, the commitments were as follows:
Ø International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), including Global Environment Facility co-financing and carbon funds, $568 million. This is 30 percent of total energy sector commitments in FY05 of $1.9 billion. This can be contrasted with International Energy Agency (IEA) forecasts of OECD investments in the energy sector from 2001-2010, where 8.3 percent of total investment is expected to be for renewable energy.
Ø International Finance Corporation (IFC), including Global Environment Facility co-financing and carbon funds, $90 million.
Ø Multilateral Investment Guarantee Agency (MIGA), $91 million
· In meeting the commitment made at the June 2004 Bonn International Conference on Renewable Energies, to scale up new RE and EE by 20 percent per annum over the average of World Bank commitment in the past three years, the World Bank Group increased support to $299 million for new RE and EE in fiscal year 2005. This exceeds the 20 percent growth target of $251 million made as part of the 2004 Bonn Commitment.
· The World Bank Group has mobilized and had under management approximately $1 billion in funds for investing in carbon emissions trading. These funds purchase greenhouse gas emission reductions in developing and transition countries on behalf of public and private sector entities requiring credits to meet their commitments under the Kyoto Protocol. The funds also support technical assistance and for the development of generic methodologies for projects to receive emission reduction credits.
· Renewable energy (RE) and energy efficiency (EE) can contribute significantly to achieving the Millennium Development Goals (MDGs) by expanding energy services, reducing the cost of energy services, and alleviating energy security concerns, thus enhancing the quality of life for the poor while improving the global and local environment. RE and EE development is an integral part of the World Bank Group energy strategy as it strives to support sustainable economic development in its partner countries.
· At the June 2004 International Renewable Energies Conference in Bonn, the World Bank Group announced a commitment to scaling up lending for renewable energy and energy efficiency (referred to hereafter as “the Bonn Commitment”). The key elements of the Bonn Commitment include ensuring that renewable energy and energy efficiency are seen as economically viable and essential ingredients in the energy choices of developing countries, increasing commitments for new RE and EE by at least 20 percent annually over the next five years (FY05– FY09), and leading a Renewable Energy and Energy Efficiency Financing and Policy Network for developing countries.
· The G8 at its Summit in Gleneagles requested the World Bank Group to play a leading role, among others, in creating a new investment framework for climate change, clean energy, and sustainable development. This initiative is fully aligned with the World Bank Group’s current energy strategy and its commitment to expanding renewable energy and energy efficiency programs.
· IFC and MIGA are expanding their efforts to identify and finance more private sector renewable energy and energy efficiency investments. To further this goal, IFC’s Infrastructure and Financial Markets Departments have created new units to focus on investments in clean, environmentally friendly energy.
· Regional World Bank energy sector teams were assisted in identifying, assessing, and developing renewable energy and energy efficiency investment opportunities, including support for sector work aimed at integrating renewable energy and energy efficiency components – where logical, desired, and appropriate – into Country Assistance Strategies (CASs) and lending programs. To jump-start this process, about $400,000 was mobilized from the President’s Contingency Fund for the development of ten Project Concept Notes for promising RE or EE investments.
· The WBG provided extensive support to several countries for the passage and implementation of renewable energy promotion laws and regulations in order to provide a more effective legal framework and to create an enabling environment for RE development.
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The World Bank Group supports all forms and scales of RE, but the Bonn Commitment applies to new RE and EE only. New RE is defined as energy from wind, solar, geothermal, biomass, and hydropower with a capacity less than 10 MW per facility.