Achieving energy access for everyone requires more and better targeted investment, but what role does climate finance play in filling the funding gaps? The International Energy Agency (IEA) and the Sustainable Energy for All initiative (SE4All) estimate that nearly USD 50 billion a year is needed to achieve universal access to electricity and clean cooking facilities by 2030. More funding for decentralised renewable energy services, such as solar home systems, mini-grids and clean cooking facilities, is a particular priority. The IEA has estimated than an additional USD 23 billion is needed each year to 2030 specifically for energy access through decentralised energy. Could this funding gap be partially filled by climate finance?
This background paper asks: To what extent is international public finance for climate change targeting decentralised energy access for the poor? The research examines data from the Climate Funds Update (CFU) database which covers public finance for all major international climate funds and is the only dataset currently available which enables us to assess what share of climate finance goes to decentralised renewable energy in developing countries.