Bilateral and multilateral financial assistance for the energy sector of developing countries

By Dennis Tirpak, Helen Adams on September 8, 2008
This article examines trends in development assistance funding for energy and the implications for mitigating climate change, during 1997-2005, a period that begins with the agreement on the Kyoto Protocol under the United Nations Framework Convention on Climate Change.

Analysis suggests that there has been somewhat of a shift away from fossil fuel to lower greenhouse-gas-emitting projects. However, analysis also suggests that, unless development assistance for energy increases in the coming years, the influence of multilateral banks will diminish and their ability to encourage sustainable energy projects will decline.

Several challenges will need to be met in the future to increase funding to ensure that investments made today, do not pollute tomorrow, and to overcome the lack of a common reporting format by standardizing the collection and reporting of data on investments for energy.

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Earthscan, 2008