Understanding the Landscape ENERGIZING FINANCE 2021

The report finds that global investment for energy access is critically insufficient. Finance for electricity in high-impact countries (HICs) fell to USD 32 billion in 2019, while clean cooking commitments stagnated around USD 130 million, far below the USD 4.5 billion annual need. While grid-connected renewables became the top electricity sector in 2019, decentralized solutions remain severely underfunded. The report emphasizes the need for climate-resilient infrastructure, as seen in Mozambique, and explores divergent clean cooking pathways in Ghana (LPG) and Vietnam (biogas).

• Total tracked finance commitments for electricity in high-impact countries (HICs) decreased by 27% in 2019, falling to USD 32 billion from USD 43.6 billion in 2018.
• Finance for residential electricity access in HICs was USD 12.9 billion in 2019, which is less than one-third of the estimated USD 41 billion annual investment required globally to reach universal access by 2030.
• Investment in clean cooking is chronically underfunded, with annual commitments between 2015 and 2019 languishing around USD 130 million, compared to an annual requirement of USD 4.5 billion.
• There was a shift in electricity finance toward Paris Agreement-aligned solutions in 2019; grid-connected renewables became the top sector, while grid-connected fossil fuel finance dropped from 50% of total electricity finance in 2018 to 25% in 2019.
• Finance for decentralized electricity (off-grid and mini-grid) is severely insufficient, totaling only USD 294 million in 2019, while the World Bank estimates a need for USD 6.6 to 11 billion in additional finance between 2020 and 2030.
• Electricity finance is highly concentrated; in 2019, Bangladesh, India, and Pakistan accounted for 82% of all tracked electricity finance commitments.
• In India, despite a pivot toward renewables, the power sector remains misaligned with the Paris Agreement, with the 2018 National Electricity Plan targeting a 60% increase in total coal-fired generation by 2030.
• Mozambique's electricity sector is highly vulnerable to climate risks due to its reliance on the Cahora Bassa dam, which provides over 50% of the country's supply via a single high-voltage transmission line.
• Private finance for clean cooking increased to USD 56 million in 2019, with 83% of that amount (USD 45 million) directed to Kenya, primarily for LPG and ethanol.
• Ghana's target to have 50% of households using LPG by 2030 requires approximately USD 400 million in total investment, but only USD 2 million was tracked for residential LPG cylinders in 2019.
• Vietnam has successfully used a public-private Biogas Programme to create a commercially sustainable market, utilizing livestock manure to provide clean cooking and organic fertilizer (bioslurry).
• The World Bank's ESMAP Clean Cooking Fund, launched in 2019 with a USD 500 million target, uses results-based financing (RBF) to catalyze public and private investment.

APA

Climate Policy Initiative (2021). Understanding the Landscape ENERGIZING FINANCE 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/UTL-FINAL.pdf

Chicago

Climate Policy Initiative. Understanding the Landscape ENERGIZING FINANCE 2021. 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/UTL-FINAL.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Understanding the Landscape ENERGIZING FINANCE 2021 |date=2021 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/UTL-FINAL.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021understanding, author = {{Climate Policy Initiative}}, title = {{Understanding the Landscape ENERGIZING FINANCE 2021}}, institution = {Climate Policy Initiative}, year = {2021}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/UTL-FINAL.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }