CAREC Energy Strategy Pillar 3

The reality of climate change is driving governments and businesses around the world to take urgent action. The region, although a small contributor to global energy-related emissions, is no exception. Various studies have established the region’s high vulnerability to climate change. Regional energy efficiency continues to be low because of old and aging infrastructure, low energy pricing, and lack of policy and regulatory support. More efficient energy systems are highly desirable for economic competitiveness, low-carbon intensity, and reliable and affordable energy services to consumers. Rapid deployment of cost-competitive renewable energy and acceleration of energy efficiency are key tools in responding effectively to climate change and for the greening of the regional energy system to enhance its long-term sustainability.

The CAREC Energy Strategy 2030 proposes to keep a clear focus on energy efficiency in the next decade, given that the region holds some of the world’s most energy-intensive economies. The CAREC program’s role over the coming decade will be to support its members in identifying suitable energy efficiency measures and allow them to become regional champions. A regional Energy Efficiency Scorecard that allows countries to benchmark their progress against international efficiency standards should serve as a central tool for improving energy efficiency in the region besides raising awareness among consumers of how they can save energy.

Until 2030, the CAREC program will also provide extensive support to its members in deploying renewable energy, such as solar, wind, and small hydropower, to increase the share of renewable energy in the regional energy mix. This support will include strategies for mitigating intermittency in renewable energy resources and building capacity for suitable incentive schemes to attract more renewable energy generation, preferably through private investments.

To enable the transition toward a green and clean energy sector, the CAREC Program will establish a new regional financing vehicle that will allow the CAREC community to mobilize finance for clean energy projects from international and domestic and public and private sources. The CAREC Green Energy Alliance shall be established as a forum for CAREC members to identify and attract these sources of funding. The aim of the alliance should be to create a shared regional platform accessible to all members seeking cofinancing for investments in energy efficiency, renewable energy, and other climate mitigation projects.