Banking on Renewables

The 'Banking on Renewables' report critiques the current funding models of Multilateral Development Banks (MDBs), arguing that the rush to increase renewable energy capacity often leads to 'green extractivism' and human rights violations. It proposes three core criteria for public funding: financing a total transition to 100% renewables (excluding 'false solutions' like CCUS), ensuring democratic and decentralized energy systems, and centering people and the planet. Through case studies in India, Kenya, Rwanda, Tanzania, and Indonesia, the report contrasts large-scale projects that displace communities with community-led initiatives that improve local livelihoods. It concludes with a ten-point action plan urging MDBs to increase grants over loans, adopt a strict renewable energy taxonomy, and mandate Free, Prior and Informed Consent (FPIC) for all projects.

• Multilateral Development Banks (MDBs) continue to fund fossil fuels despite increasing renewable energy spending; for example, World Bank spending on gas and oil increased fivefold between 2022 and 2023, while the Asian Infrastructure Investment Bank (AIIB) saw fossil fuel funding rise by 118% in the same period.
• Current MDB funding models rely heavily on loans and private equity, which increase debt pressure on low-income countries and prioritize private profit over local benefits. In 2023, less than 1% of World Bank renewable energy investments were disbursed as grants.
• Large-scale renewable projects often cause significant social and environmental harm, including land grabbing and biodiversity loss. In India, large solar parks have led to the displacement of livestock herders and deforestation, while in Indonesia, large hydropower projects like Jatigede have submerged 48 historical sites and indigenous territories.
• The report identifies 'false solutions' that prolong fossil fuel dependence, such as Carbon Capture, Utilization, and Storage (CCUS), coal co-firing with biomass or ammonia, and 'hydrogen-ready' gas infrastructure, which it argues are often used for greenwashing.
• Community-led and decentralized energy projects demonstrate better development outcomes. Examples include community solar in Delhi and micro-hydro power (PLTMh) in Indonesia, which provide direct electricity access and economic opportunities to the most marginalized.
• Rwanda and Tanzania are cited as success stories where national strategies and MDB support for off-grid and mini-grid solutions significantly increased electricity access, with Rwanda's access rising from 16% in 2013 to 74% in 2024.
• There is a critical lack of accountability and transparency in MDB funding, especially when funds are channeled through Financial Intermediaries (FIs) or capital markets, which often bypass environmental and social safeguards.
• The transition to renewable energy creates new risks in the supply chain for critical minerals (such as lithium, nickel, and cobalt), requiring the adoption of guiding principles to protect human rights and biodiversity during extraction.

APA

Doig, A., Pascual, M. M., & Ramazzotti, A. (2025). Banking on Renewables. Trend Asia. https://trendasia.org/wp-content/uploads/2025/07/Banking-on-Renewables_Mengandalkan-Energi-Terbarukan_Bahasa.pdf

Chicago

Doig, Alison, Mark Moreno Pascual, and Alessandro Ramazzotti. Banking on Renewables. Trend Asia, 2025. https://trendasia.org/wp-content/uploads/2025/07/Banking-on-Renewables_Mengandalkan-Energi-Terbarukan_Bahasa.pdf.

Wikipedia

{{cite report |last1=Doig |first1=Alison |last2=Pascual |first2=Mark Moreno |last3=Ramazzotti |first3=Alessandro |title=Banking on Renewables |publisher=Trend Asia |date=June 2025 |url=https://trendasia.org/wp-content/uploads/2025/07/Banking-on-Renewables_Mengandalkan-Energi-Terbarukan_Bahasa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{doig2025banking, author = {Doig, Alison and Pascual, Mark Moreno and Ramazzotti, Alessandro}, title = {{Banking on Renewables}}, institution = {Trend Asia}, year = {2025}, month = jun, url = {https://trendasia.org/wp-content/uploads/2025/07/Banking-on-Renewables_Mengandalkan-Energi-Terbarukan_Bahasa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }