What will be the sources of financial resources for investing in Sustainable Energy Projects and the role of SIDS DOCK?
SIDS DOCK will facilitate funding for investment in sustainable energy projects through a combination of sources including the SIDS themselves (government, private sector, social organizations), and the global private sector and development partners, with the goal of transforming the highly inefficient and fossil fuel dependent energy sector. SIDS DOCK will seek to promote national /regional energy investment bonds. Global private sector funding will come from a variety of sources ranging from socially responsible investors, financial institutions, and project financing.
Additionally, SIDS DOCK will work with the key sponsors of the global carbon markets to securitize future emission reduction from SIDS. Success in securitizing future emission reduction will facilitate early and increased flows of financial investments into sustainable energy projects.
Public-private partnerships represent a proven mechanism for financing and/or technology transfers, and would be promoted by SIDS DOCK as a principal means of investments in sustainable energy projects in SIDS. Also, SIDS DOCK would work with bilateral donors and multilateral organizations to consider invest equity in these projects. Proceeds accruing from such investment would be available for further project financing in the SIDS.
A Memorandum of Agreement for establishing the SIDS sustainable energy initiative, SIDS DOCK, was formally signed by ten countries in December 2009: Bahamas, Belize, Cape Verde, Dominican Republic, Jamaica, Mauritius, Palau, St. Lucia, Seychelles, and Solomon Islands. In February 2010, Grenada signed on. Nations committed to signing are Barbados, Samoa, St. Vincent and the Grenadines. The following countries have projects in development: The Commonwealth of the Bahamas, Belize, Dominican Republic; Grenada and Jamaica with two projects each. The seven projects are classified in four areas:
- Biofuels Production;
- Energy Conservation;
- Energy Efficiency, and;
- Renewable Electricity Generation.