REEEP

COP side event: business plays a vital role in low-carbon growth

Durban, 08.12.2011 - REEEP International Secretariat

Alongside COP17 in Durban today, an official joint side event hosted by REEEP, the Carbon Disclosure Project, CTI-PFAN and CREIA, highlighted the vital role businesses have to play in low-carbon development, particularly in the emerging markets.

Moderated by Binu Parthan, REEEP’s Deputy Director General, the panel included a wide mix of perspectives, ranging from the views of CEOs like Paul Simpson of the Carbon Disclosure Project and Peter Xie of GCL Solar Energy Ltd, one of China’s one of China’s top poly-silicon manufacturers, to those of Harish Hande, the social entrepreneur and founder of SELCO Solar Lighting in India, to those of Peter Story, the Global Coordinator of CTI-PFAN, a small business coaching and investor matchmaking service for clean energy projects.

There is actually good news to report, and the pivotal role that the private sector has to play in promoting low carbon energy in the emerging markets was a theme that cut across all presentations. For example, Paul Simpson noted that 68% of the 500 companies CDP surveys globally are integrating climate change initiatives into their core business strategy.   And a full 59% of the emissions reductions activities reported by them have a payback period of three years or less - so cutting emissions can indeed be profitable.  With a similar big-company perspective, Peter Xie pointed out that it’s the private sector that has fuelled the 90% in the cost of PV in recent years, the decisive factor in making it realistically affordable. 

Harish Hande comes at solar technology from a decidedly grassroots perspective. In order to bring solar technologies to the poor in the Indian states of Karnataka and Gujarat, SELCO looks at the entire “ecosystem” of delivery, designed around the poor as asset creators. Their needs are simple: they want a simple solar system that powers two lights and a charger at their home and are actually willing to pay for this. So simple loan models have been created to help them pay for the systems, and once these are repaid, can be followed up with loans for things that support income generation activities. With this model, SELCO has already provided lighting systems to 120,000 households, and aims to reach 200,000 by the end of 2012.

Peter Storey highlighted another grassroots effort, the Private Financiers Advisory Network or PFAN, which screens business plans, selects the most economically viable and environmentally beneficial projects, and provides multiple rounds of coaching and guidance before projects are presented to investors.  In last 24 months,  the organisation has closed $US 329 million in funding for 31 projects globally. In Africa, these include $US 31.5 million raised for the expansion of Barefoot Power ‘s innovative distribution model for solar powered LED and other products targeting consumers at the bottom of the pyramid.

At the end of the event, the moderator asked the panel what they thought should be done in the remaining negotiations at COP17.  All panellists shared low expectations for the outcome, and re-emphasized the need concrete steps such as the need for a clear price indicator on CO2, and the urgency of agreeing details on process for the Green Climate Fund.