World Bank and AFD to launch Global Solar Risk Mitigation Initiative

The SRMI is an integrated approach aimed it tackling policy, technical and financial issues, which are associated with scaling up solar energy initiatives.

Keeping in line with international Solar Alliance’s ambition of promoting solar energy among member states, the World Bank and Agence Française de Développement (AFD) are developing a joint Global Solar Risk Mitigation Initiative (SRMI).

The SRMI is an integrated approach aimed it tackling policy, technical and financial issues,  which are associated with scaling up solar energy initiatives especially in poor countries.

“The World Bank, in partnership with AFD, remains committed to the International Solar Alliance’s goals and to global efforts to fight climate change,” said Riccardo Puliti, Senior Director of Energy and Extractives at the World Bank.`

He further added that, “Through this new, integrated approach, we hope to further scale up solar energy use by reducing the cost of financing for solar projects and de-risking them, especially in low-income countries.”

Cost of solar power, which is now seen as a key component in the fight against climate change, has been falling steadily over the years. But the layers of risk perceived by the private sector in financing projects has been a reason for stymied growth of the sector, this is what the initiative will aim to change.

“This partnership with ISA and the World Bank is another step towards achieving the objective of the Paris Agreement of redirecting financial flows in favor of low carbon and resilient development pathways.  AFD is glad to join forces with these partners to deliver on the commitments made at COP21, to bring solutions to de-risk potential solar investments and mobilize the private sector to invest in sustainable development” said Rémy RIOUX, CEO of AFD.