The Challenge of Low-Carbon Development - World Bank Internet ...

Figure 2.2Breakdown of 2003–08 Low-Carbon Portfolio by Country Income Group and Type3,5003,000Amount ($ millions)2,5002,0001,5001,0005000Low incomeLower middleincomeUpper middleincomeIncome groupHigh incomeRegionalOff-grid renewable Grid energy renewable Energy and efficiency OtherSource: IEG.Note: Unit of analysis is the project component. Excludes freestanding WBG analytic and advisory activities, IFC advisory services, and specialfinancing.Figure 2.2 show the breakdown of this portfolio by countryincome group. About 60 percent goes to low- andlower-middle-income countries; China, the single largestrecipient, accounts for 16 percent. Energy efficiency is moreprominent in the wealthier countries.Meeting the Bonn commitmentAt the Bonn Conference on Renewable Energy, the WBGpromised that with the aim of ensuring an institutionalfocus on the transition toward cleaner energy sources,it would commit to a target of at least 20 percent averagegrowth annually—in both energy efficiency and new renewableenergy commitments—over the next five years(fiscal 2005–09).IEG’s reckoning of funds committed to energy efficiencyand new renewable energy exceeds that of the WBG. TheBonn Commitment was surpassed, with commitmentsgrowing from a base of $209 million to $2,061 million in2008 (IEG calculation) and $3,128 in 2009 (managementcalculation). 5 Figures 2.3 and 2.4 show the growth in totallow-carbon commitments, indicating a sizeable boom ingrid-connected renewable energy, much of it large hydropowernot counted under the Bonn Commitment.Energy efficiency grew with large spurts in 2006 and 2008,with financial intermediaries assuming more prominencein the latter period. The growth was mostly in projects thatwere purely traditionally financed, with a rapid expansionof IFC and IBRD funds, and it occurred disproportionatelyin the lower-middle-income countries.The WBG funds committed to energyefficiency and new renewable energy greatlyexceed the amounts agreed under the BonnCommitment.Based on data reported by the Investment Framework forClean Energy and Development (management), low- carbonFigure 2.3Amount ($ millions)3,0002,0001,000Growth in Low-Carbon Portfolio byProject TypeLow carbon: Groups of technologiesversus FI, by financing amount02003 2004 2005 2006 2007 2008YearOff-grid renewable, no FIEnergy efficiency, no FIFI, totalGrid renewableenergy, no FIOther, no FISource: IEG.Note: Unit of analysis is the project component. Excludes freestandingWBG analytic and advisory activities, IFC advisory services, andspecial financing. FI = financial intermediation.Renewable Energy | 15