Sustainable energy investments: contributions of the Global Environment Facility

Abstract

Addressing energy, economic and environment security is a pressing challenge for nations worldwide. Global energy demand is projected to increase by 45% during the next 20 years, with the fastest growth in developing and transition countries. Over the past two decades, the Global Environment Facility (GEF) has invested in a portfolio of sustainable energy projects with an emphasis on energy efficiency, renewable energy, and urban transport. These projects address many different national priorities including infrastructure, technologies, policies, best practices, institutions, and capacity building. Since 1991, more than US$2,735 billion has been invested in energy sector projects with an additional US$17.118 billion in co-financing from governments and the private sector. US$1,186 billion, together with US$7,092 billion in co-finance, has been invested in energy efficiency projects that deploy new technologies, develop institutional and human capacity, disseminate best practices, and build public awareness and understanding. GEF renewable energy investments of US$1,298 billion, with co-financing of US$7,555 billion, have advanced demonstration and deployment of solar thermal heating, solar thermal power, photovoltaics, wind power, geothermal energy, small hydropower, biomass, and combined technologies and best practices across 5 continents. The GEF has invested US$251 million (with US$2,471 billion in co-finance) in urban transport projects that address transport strategies, infrastructure, and mobility technology solutions. These energy efficiency, renewable energy and urban transport projects contributed to the direct reduction of about 1.7 billion tons of greenhouse gas emissions. Other tangible environmental benefits also flowed from these GEF investments. Case studies of representative projects are presented to illustrate lessons learned from the energy efficiency, renewable, energy, and urban transport investments. Experiences from GEF investments can inform development and implementation of future sustainable energy investments.