11-05-2017, Vienna, Austria
On the 10th of May, 2017, the Private Financing Advisory Network (PFAN) was officially relaunched under its new hosting arrangement with the United Nations Industrial Development Organisation (UNIDO) in cooperation with REEEP in Vienna, Austria. Under this arrangement, PFAN’s activities will be scaled up by a factor of two to five by the year 2020.
“The transition of PFAN to new governance and hosting under UNIDO and REEEP is very promising. We look forward to expanding activities and facilitating access to private sector financing for low-carbon, climate-resilient technologies in developing countries,” said Li Young, Director General of UNIDO.
“The PFAN Programme will help contribute to mobilizing US$100 billion of private and public financing per year by 2020, as pledged by industrial nations under the Copenhagen Accord, and will also support the implementation of the 2030 Agenda for Sustainable Development.”
The programme addresses the primary obstacles to the large-scale deployment of the low-carbon, climate-resilient technologies required to curb climate change: access to finance and a limited pipeline of bankable projects.
The large investment flows needed to set in motion a clean energy transition at the speed and scale necessary to meet global climate and energy challenges can only be achieved by leveraging the private sector. PFAN operates by identifying high potential clean energy projects, and providing them with project development, investment advisory and financing facilitation support via a network of independent experts.
The PFAN Programme, supported by a coalition of governments and international organizations, which includes Australia, Sweden, and the United States of America, among others, has mobilized private sector investment orders of magnitude higher than its operating costs.
To date, PFAN has raised US$1.2bn for a total of 87 closed projects, representing an annual reduction of 2.7 million tons of CO2e emissions, 701 MW of clean energy capacity and 140.7 GWh of energy savings for energy efficiency projects per year. The projects represent a diversity of clean energy technologies, including solar, biogas, waste to energy, hydro, wind and biomass, and introduce energy efficiency methods. They help support the expansion of rural electrification, clean transport and sustainable energy for agriculture.
PFAN works in some 35 countries. Asia and Africa currently dominate, with growth expected in Latin American and West Africa.
Mette Møglestue, Senior Adviser at the Minister of Foreign Affairs of Norway, said: “The PFAN Programme will leverage private sector financing, while mitigating climate change impacts and providing access to reliable, clean and affordable electricity services to underserved households in emerging economies. The new governance and hosting expedites a solid infrastructural base for PFAN to scale-up and live up to its ambitions.”