23-nation group on clean energy to clear financing hurdles

NEW DELHI: The 23-nation grouping on clean energy today decided to chalk out ways to clear the financing hurdles that have halted progress of the initiative.

"We discussed as to what are the constraints and what can be done... We are thinking of preparing a paper on what are the issues of financing. One of the issues may be international funding," Deputy Chairman Planning Commission Montek Singh Ahluwalia said after the two-day Clean Energy Ministerial meet.

"Actually, how to mobilise private finance, not just globally but internally, is very important," he added.

The meet saw participation from 23 nations that represent 90 per cent of the global clean energy investment.

Ahluwalia said the paper would be prepared by the secretariat before being put up for discussion at the fifth meet to be held in Korea next year.

Participating countries, including India and the US, voiced concerns on the slow pace of growth in the clean energy space. International Energy Association also dubbed the current pace of growth as "bleak".

All the participants, rich as well as developing nations, expressed the desire to take the clean energy movement forward, they cited inadequate finance and technology as major impediments.

Ahluwalia said ministers from various countries including India, China, South Korea and USA deliberated on these issues and decided to bring private sector on board to improve the flow of funds.

US Secretary of Energy Steven Chu said usage of energy efficient devices by power-starved economies like India will help investments.

As per global assessment investments in clean energy is increasing.

Meanwhile, during the talks both developed and developing nations were almost unanimous that not enough was being done to produce energy with less CO2 (carbon dioxide).

Many nations felt developed nations need to do more to make available clean technology for developing nations like China and India.

The International Energy Agency (IEA) said in a report released at the ministerial conference that the rapid expansion of renewable technologies is one of the few bright spots in an otherwise bleak assessment of global progress towards low-carbon energy.