Mobilising Investment for NDC Implementation (MI) was launched by CDKN, SouthSouthNorth and LEDS-GP in 2017. The project works with seven partner countries around the world, namely Bangladesh, Ethiopia, Kenya, Peru, Dominican Republic, Philippines and Vietnam, to accelerate public and private investment in priority NDC sectors and markets.
Bangladesh contributes only 0.35% of global emissions and yet has been a vocal advocate of climate leadership and proactive in implementing the greenhouse gas reduction commitment targets in its NDC. In 2016, with CDKN’s support, Bangladesh developed plans for mitigation action in power, transport and industry sectors, as well as an overarching strategy to synergise governmental efforts on NDC implementation. However, financing limitations have restricted the country’s mitigation efforts.
During the inception phase, a scoping study was undertaken to identify the most fundable sub-sector in relation to Bangladesh’s NDC. The study looked at the potential to support public actors and the private sector to create favourable conditions for private investment in implementing NDCs by de-risking investments and increasing the scale of demand. During this phase, five sub-sectors were shortlisted from the NDC, through research, consultations and interviews.
During Phase 1 of the project, sector summaries were used as basis of discussion with high-level government officials including the Ministry of Environment, Forests and Climate Change and sectoral ministries (power, industry, transport) to select one sub-sector for further work. Unanimously, off-grid solar energy was selected for its scale and potential for future investments.
The project team worked with the Sustainable Renewable Energy Development Authority (SREDA) during Phase 2 of the MI project, to identify options for how the public sector could support private investment into the off-grid solar energy sector, and increase private sector awareness of investment opportunities and incentives in the sector. This was achieved by studying the markets, identifying international business model examples from similar markets and exploring key technical, financial and policy barriers to investment in the sub-sector.
Phase 2 Outputs:
Phase 3 is the final phase of this project and it will continue to support SREDA in de-risking investment for solar irrigation pumps (SIPs). The project will develop a GIS-based analytical tool to support policy-makers and investors in identifying the most attractive sites to support the scaling up of the market from around 1,000 SIPs to over 50,000 in the next five to ten years. The project also aims to support the sale of surplus power to the main grid by identifying and prioritising ‘meshes’ or ‘clusters’ of SIPs that would be technically and economically feasible for connection to the grid under a modified net metering policy.
Phase 3 Expected Outputs:
Timeframe: April 2017 – March 2020
Partners: PwC UK, Acclimatise, NACOM, Vivid Economics