Comments and Questions

The Discussion Paper „Advancing a global transition to clean energy – the role of international cooperation“ addresses the important nexus of global investments into renewable energies and fossil fuel infrastructure in the context of the Sustainable Development Goal (SDG) 7 on clean and affordable energy. The authors first provide an overview of the current global developments in the energy sector as well as the status quo of international cooperation activities. Subsequently, they outline different gaps and challenges in the international energy cooperation, such as lacking investments for renewable energies, a focus on a small group of countries and existing, i.e. grid based solutions and the persistence of credits for fossil fuel infrastructure granted by export-credit agencies. The last three chapters propose potential solutions, namely, higher investments in clean energy while simultaneously stopping fossil fuel funding, addressing the associated socio-economic benefits of an energy transition and finally to provide early market support for energy innovations. The problem analysis touches upon important problems in the structure of the global energy finance while the proposed solutions hint towards probably useful reform proposals. However, the scientific contribution this discussion paper could be increased as the paper partially lacks academic rigor. I recommend to carefully rework different sections in order to make problem analysis more comprehensive and aligned with the reform proposals. Major points of critique:- There is a lacking coherence between the chapters but also within them. For example, chapter 4 promotes fostering socio-economic analyses on the benefits of a global energy transition, on both, a country as well as on a global level. Though the outcomes of such analyses would clearly be interesting, this proposition nevertheless does only very indirectly address the key challenges that were outlined earlier in chapter two (too little RE investments, focus on existing solutions and few countries, remaining fossil support of export credit agencies). The authors neither explain which problem shall be addressed, nor why especially those analyses should effectively contribute to solve them. Though one can hypothesize about how those scoio-economic analyses might for example foster RE investments by highlighting their benefits, it should be discussed why this measure is best suited to address this shortcoming and not others. This critique holds for all proposed solutions (chapter 3-5). None of them clearly derive from the described problems in chapter 2. First, linking the solutions to the specific problems and second, empirical evidence that show their success in the past would underpin their selection.Lacking coherence within the chapters can, for example be illustrated based on 2.3: The overall topic of chapter 2 are “gaps and challenges”. 2.3 however first outlines the need for locally adjusted solutions (solution), then potential opportunities of market-creating innovations (another solution) and finally, but unconnected to the previous paragraphs, warns of fossil fuel infrastructure lock-ins. The section 2.3 could be integrated to the solution chapters (first two paragraphs) and to the introduction (last paragraph). - The second chapter shall outline “gaps and challenges” but lacks in elaborating their relevance and magnitude. This unclear problem analysis makes deriving solutions quite difficult. For example, the “problem” of a focus on existing solutions (2.2) is not really described. The first paragraph is the following: “In terms of technologies, investments still primarily target grid-connected electricity generation. Despite their proven ability to provide rapid and affordable access to clean energy in many country contexts, off-grid technologies account for only 1.3 percent of investments.” Why exactly is the lacking focus on off-grid technology a problem? How exactly would off grid solutions be beneficial? The topic of missing off-grid electricity was not discussed in the first chapter and will only reappear in the fifth chapter, where the authors demand market support programmes. Minor points of critique:- In the introduction, more quantitative information on certain developments would have been helpful or interesting. For example in 1.1, the overall and added capacity (and not only overall investments) for REs and fossil fuels. Or in 1.2, the overall magnitude of multilateral and bilateral financial volume including its development over time.- Again in chapter 1.2, the ODA funding for fossil fuels did not “remain stable” as it grew from 1.2 billion to 2.8 billion (increase of 250%). Similarly, the recent decrease has only occurred in the last two years (2016 and 2017); the suggested picture of a shift towards renewables is therefore a little overemphasized.- In the second chapter, “Gaps and challenges for international energy cooperation”, there are some slightly confusing numbers: How to the 30 billion in support of the SDG7 (page 3) align with the 33 billion for developing countries (page 4)?- For section 2.4, the magnitude of credits granted by export-credit agencies (in fossil infrastructure) beyond Germany would be interesting.