Energy efficiency is one of our most underestimated resources. The International Energy Agency (IEA) goes even further, describing it as our most important source of energy ("the world‘s first fuel"). And its potential is far from being exhausted. Well over half of the primary energy used around the world is lost during the production, transportation and consumption process. These losses, which are unnecessary in many cases, provide a huge opportunity for saving energy and using it more effectively. This is particularly but not only true for the emerging and developing countries. A backlog of investment, outdated technology and practices when dealing with energy resources and a lack of expertise offer significant potential to improve efficiency. In light of the growing overall demand for energy, energy efficiency must therefore play a much bigger role than it has before, particularly in the poorer regions of the world. That‘s because this is a crucial factor for making the supply of energy more affordable and more reliable, and - last but not least - protecting the climate.
Sitting at the intersection of environment and development, the question of how to address climate change is increasingly being framed as a problem requiring transformational solutions. This paper assesses the opportunity of financing transformational change for climate change mitigation as a practical question of development finance.
Climate finance is one crucial issue and is needed to support mitigation and adaptation in developing countries and emerging economies. EU Blending Facilities are instruments set up by the European Commission. They describe facilities that have the possibility of blending and cover a specific region.