This report discusses the potential of financial aggregation in enabling global capital markets to finance distributed renewable energy (for residential and other uses) in developing countries. It explores the state of small-scale, low-carbon energy in developing countries as well as the barriers to financial aggregation, along with some proposed solutions and key considerations for market practitioners. The focus is on Sub-Saharan Africa, but the findings are broadly applicable to all developing regions, especially those with underdeveloped financial markets.
The report results from a collaboration between UNDP and Climate Bonds Initiative in the context of the UNDP's Climate Aggregation Platform – a Global Environment Facility (GEF)-funded project to promote the scale-up of financial aggregation for small-scale clean energy in developing countries. It is based on an extensive literature review and dozens of interviews with relevant stakeholders, both from the product (sell) and finance (buy) sides.