On the sidelines of the United Nations Conference on Climate Change (COP26), the SIDS Clean Energy Toolkit, a new tool that aims to unlock clean energy investments in small island developing states (SIDS - Small Island Developing States), many of which depend heavily on imported fossil fuels for energy production.
SIDS made a collective commitment in 2019 to reach the goal of 100% renewable energy by 2030 and net zero emissions by 2050. However, they do not have enough funds to achieve this transition, with private and public lenders not investing. enough in the sector.
The SIDS Clean Energy Toolkit, developed as part of a joint project of the Commonwealth Secretariat and Sustainable Energy For All (SEforAll), aims to help these countries to translate energy transition plans into investment opportunities starting from precise cost-benefit analyzes. . This toolkit was created to address various obstacles faced by small island states in their transition: the small size of projects and the consequent lack of interest from major international investors, the lack of adequate capital in local financial institutions and legal conditions. restrictive for foreign investments.
Launching the toolkit, Commonwealth Secretary General Patricia Scotland said: “Of the 38 countries classified by the United Nations as small island developing states, 25 are Commonwealth countries. Despite the significant potential for green energy resources, SIDS has a heavy dependence on imported fossil fuels which results in some of the highest electricity costs in the world, along with significant supply chain challenges that put pressure on already subjected economies. to strong limitations. This toolkit can help SIDS develop business cases and strategies to facilitate investments in clean energy projects, particularly in the energy sector ”.
The toolkit was tested in the Seychelles. Using this tool, a business case for the archipelago was developed which identifies the scale of investments required for its energy transition. Welcoming the opportunity, Minister of Finance, Economic Planning and Trade, Naadir Hassan, said: “I cannot stress enough that there is an urgent need for us to prepare for the future and if we do not invest in development and exploitation of renewable energy sources today, we could face a situation where we will be victims of severe energy shortages. The cost of the transition at that point may be beyond our means. The call to action is now ”.
The launch event also included a roundtable for investors and financial institutions such as the International Renewable Energy Association (IRENA), Green Climate Fund (GCF) and Bloomberg New Energy Finance (BNEF), which discussed the business. homes to invest in clean, reliable and affordable electricity in the Seychelles.
