In October, EPP’s Doug Miller, Director of Market Development, published a guest blog for the Emissions First Partnership on the Climate and Social Benefits of Relaxed Market Boundaries for Low-Income Countries.
The following is an excerpt from the blog:
Companies are currently disincentivized to support projects that will expand clean electricity access to the over 780 million people in low-income, fragile countries who lack electricity access and are the most exposed to the negative impacts of climate change. As a result, the vast majority of the US3$ trillion invested globally in clean energy in recent years goes back into developed energy markets, with only 2% reaching communities across the entire African continent.
Corporate clean energy procurement has served and will continue to serve as a critical lever for accelerating and scaling power sector decarbonization across global markets. The additional revenue that corporate procurement delivers in turn enables financing for clean energy projects around the world. Companies have a growing menu of next generation procurement options at their disposal, including options for supporting clean energy access in low-income countries. For example, companies can transact Peace Renewable Energy Credits (“Peace RECs”) to support new renewable mini-grids with connected community social-impact projects (e.g., public street lighting, productive use hubs, and hospital or school electrification) in fragile countries. Peace RECs serve as high-impact energy attribute certificates in countries such as South Sudan, Nigeria, the Democratic Republic of Congo (DRC), Somalia and Chad, that help companies maximize the social benefits and avoided emissions of their clean energy procurement strategy.