LAPU-LAPU CITY, Cebu: Energy ministers throughout the Asia Pacific rim have called on Asia-Pacific Economic Cooperation (APEC) member economies to increase their investments in green economy as well as endeavors promoting public-private partnership in green energy.
Reporting on the outcome of the recently concluded 12th APEC Energy Ministers’ Meeting held here earlier this week, Energy officer-in-charge Zenaida Monsada said the energy ministers agreed to improve energy trade and investment in the APEC community emphasizing increasing investment in green economy through Green Energy Finance, among others.
Based on data issued by the International Energy Agency (IEA), investments in energy efficiency market is worth at least $360 billion in 2012, which was higher than that in renewable energy and traditional fossil fuel power generation sector.
In recent years, APEC has also made great efforts in green energy trade and investment issues by conducting various workshops and dialogues on green energy industries. However, green energy financing was not addressed in the fora.
High costs, the nature of capital intensiveness, the use of fossil fuel subsidy, and policy and regulatory factors were identified as having an impact on the sustainability of renewable energy investment.
To overcome the barriers to the financial sustainability in renewable energy and energy efficiency fields, energy officials and experts pointed out the need for more supportive and stable policy and regulatory framework.
In addition to sound public policy and effective regulatory system, flexible financing markets can nourish sustainable green energy investment while banks serve as important channels for investment in green economy from private sectors.
On the other hand, to continue the momentum of energy trade and investment issues promoted in APEC, the Green Energy Finance initiative was established this year following its proposal by Chinese Taipei.
The initiative aims to provide a framework and platform for dialogue and cooperation specifically for green energy finance in the APEC region, as well as endeavors to promote the public private partnership in green energy finance.
It will promote the experience sharing and knowledge dissemination with regard to the governance that improve the participation of banks and capital market in green energy finance, and the formulation of clear, stable and consistent policies and regulatory system.