Connecting countries to climate technology solutions
English Arabic Chinese (Simplified) French Russian Spanish Yoruba

Results-based financing in the energy sector : an analytical guide

Publication date:
Type of publication:
Objective:
CTCN Keyword Matches:
Collection:

Results based financing (RBF) approaches are becoming an increasingly popular way to support development objectives and wider public policy goals and this report addresses using this approach in structured interventions, and how and when to address trigger factors and exit strategies.

The fundamental idea of RBF approaches is that payments that would otherwise be made automatically are made contingent on delivery of a pre-agreed result, with achievement of the result being subject to independent verification.

RBF approaches have been pioneered in the health sector but there has been increasing interest in whether and how they could be used within the energy sector, and especially on how they may promote private sector investment in low carbon energy sector opportunities (ESMAP 2012).

The work has been commissioned by the Energy Sector Management Assistance Program (ESMAP), as part of a broader initiative looking at the potential for greater use of results-based approaches (RBAs) in the energy sector in developing countries

This report identifies the circumstances when Results Based Financing (RBF) approaches might be an appropriate energy sector intervention in developing countries, especially to promote energy access and energy efficiency.

It was commissioned by the Energy Sector Management Assistance Program (ESMAP) as part of a broader initiative looking at the potential for greater use of results-based approaches in the energy sector in developing countries.

The fundamental idea of RBF approaches is that payments that would otherwise be made automatically are made contingent on delivery of a pre agreed (set of) result(s), with achievement of the result(s) being subject to independent verification.

The report is focused on individuals and organizations who are considering whether an RBF approach would be a sensible way to deliver some specific goods or services to help meet a defined public policy goal.

These individuals or organizations might then go on to implement an RBF scheme in the language of the report; they would be the RBF scheme's focus on the energy sector in developing countries principal.