The private sector is playing an increasingly vital role in financing clean energy projects across the Asia and Pacific region. Also, partnership financing and public-private partnerships are emerging as key mechanisms to mobilize capital, leverage public resources, and drive innovation in the clean energy sector. Governments are creating environments to attract private investment and public private partnerships as well as to foster support from regional and global partnership facilities. Despite progress, governments in the region continue to have limited technical and financial expertise required to advance the development and implementation of projects needing partnership funding and/or some combination of blended financing. How can we improve access to blended financing for clean energy projects in the region? What strategies can be employed to mitigate the perceived risks associated with clean energy investments? How can regulatory frameworks be harmonized to support private sector participation in clean energy projects? What capacity-building initiatives are necessary to enhance the financial expertise of stakeholders to better secure blended finance options?
The Private Sector and Partnership Financing track will explore the latest developments and challenges in mobilizing capital and fostering public-private partnerships in the clean energy sector. Discussions will focus on innovative financing mechanisms, risk mitigation strategies, and capacity-building initiatives that can elevate private sector investment and collaboration among governments, private sector, and regional as well as global partnership entities. The track aims to identify actionable strategies to enhance financing solutions, promote sustainable development, and accelerate the clean energy transition. The four main areas of discussion in this Thematic Track will include:
- Innovative Financing Mechanisms: New financing mechanisms, such as thematic bonds, climate funds, and blended finance, are being developed to attract private investment in clean energy projects. Ensuring the scalability and accessibility of these mechanisms for diverse stakeholders requires the following questions to be addressed. How can we scale up innovative financing mechanisms to support clean energy projects? What role can public-private partnerships play in developing and implementing these mechanisms?
- De-Risking Clean Energy Investments: Governments and financial institutions are implementing risk mitigation strategies, such as guarantees, insurance, and de-risking instruments, to attract private investment. Addressing the high perceived risks associated with clean energy investments, the following questions will receive attention. What are the most effective risk mitigation strategies for clean energy projects? How can we enhance the collaboration between public and private sectors to implement these strategies? What role can partnership financing have in mitigating financial risks in clean energy investments?
- Building Expertise for Clean Energy Investments: Capacity-building programs and technical assistance initiatives are being launched to enhance the expertise of stakeholders involved in clean energy investment projects. Limited technical and financial expertise can hinder the development and implementation of PPPs and other blended finance initiatives. What capacity-building is needed to support the development of PPPs and other forms of blended finance in the clean energy sector? How can we ensure that these initiatives are accessible to all stakeholders?
- Strengthening Regulatory Frameworks and Policy for Clean Energy Investments: Governments are creating enabling environments through policy support, incentives, and regulatory frameworks to attract private investment. Inconsistent policies and regulations across countries can create obstacles for private sector participation. How can regulatory frameworks be harmonized to support private sector participation in clean energy projects? What policy incentives can be provided to encourage private investment?