Under the ASEAN-German Energy Programme for ASEAN (AGEP)–a jointly implemented project by ASEAN Centre for Energy (ACE) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ)–ACE finalised the Study on Enabling the Renewable Energy Revolution: Insurance and Guarantee Schemes in ASEAN Member States. The Study was developed with technical assistance from South Pole.
The Programme Area No.5: Renewable Energy under the ASEAN Plan of Action for Energy Cooperation (APAEC) 2016-2020 addresses one outcome-based strategy, which is to increase the promotion of Renewable Energy (RE) financing schemes in the ASEAN region. This study successfully identified that the market for RE insurance and guarantee products in ASEAN experiences a strong growth in supply and demand, reflecting the ever-increasing RE investments in the region.
Climate Policy Initiative (CPI) conducted study recognised that risk mitigation instruments for financial investments, such as guarantees, risk-sharing facilities, and insurance product, can be attractive and a relatively inexpensive ways for the public sector to mobilise private investments for climate related projects (CPI, 2013) thereby acting as an enabler of investments into RE projects. As a result, various insurance and guarantee instruments and providers thereof are available in the ASEAN region.