CleanStart programme launched

UN Capital Development Fund (UNCDF) and United Nations Development Programme (UNDP) – jointly launched CleanStart here today

The joint global programme CleanStart seeks to expand access to clean energy for the poor through microfinance and responsive value chains.

It aims to support 600,000 poor households and micro-entrepreneurs to have access to modern energy services through microfinance in the country. It also seeks to build end-user confidence in the reliability of technologies chosen for lending by strengthening supply chains.

The panel discussion, while marking the roll out of the CleanStart programme in Nepal, explored issues around financing access to clean energy for the poor.

Discussions centred on the necessary actions to expand the energy value chain for poor people in Nepal, with a particular focus on the role of finance.

The panel – comprising of executive director of Alternative Energy Promotion Center (AEPC) Govind Raj Pokharel, chief executive of Himalayan Bank and Chairperson of Nepal Banker’s Association (NBA) Ashoke SJB Rana, energy adviser at Royal Norwegian Embassy Bibek Chapagain, assistant country director at UNDP Nepal Vijaya Singh and chief technical advisor at UNCDF Nepal Ana Klincic Andrews – was moderated by UN Resident and Humanitarian Coordinator in Nepal Robert Piper.

“The key drivers to provide access to clean energy are equity and social inclusion and AEPC seeks to rectify regional disparities,” Pokharel said, adding that although this sector receives a subsidy of about €20 million, the subsidy received goes towards ensuring quality of the products and services available and in generating demand among individuals at the bottom of the pyramid. “However it still requires financing for the end-users. Financial institutions therefore need to focus on providing access to energy through financing schemes and products.”
The gap that exists in this sector is close to €30 million to €40 million, he added.

Likewise, Rana explained the challenges that are faced by the banking community as well as financial institutions in providing access to finance to the poor especially relating to transaction costs, a lack of financial literacy among the poor, as well as complying with regulatory issues.

Singh informed the major barriers – policy, systemic and financial – to transitioning to improved services are. “The UNDP has focused on income generation activities to overcome the above mentioned barriers,” he added.
Earlier, chief technical advisor of UNCDF Ana Klinic Andrews explained the nature of the CleanStart programme as part of a global endeavour to bring global commitment made during Rio +20 to the national horizon. She emphasized the four main components – end user financing, technical assistance, knowledge and learning and finally, and advocacy and partnership – of the programme.

Chapagain, on the occasion, emphasised on the importance of the sector and explained the role of the Norwegian government in supporting clean energy as well as access of finance to the poor.

After a session of interactive discussions Piper concluded that CleanStart is the beginning of a long term sustainable effort as yet another global UN strategy to provide access to clean energy for the poor, creating new opportunities for the emergence of a green economy.