Advance Market Commitments for Low Carbon Technology: Creating Demand in Developing Countries
The question of how to shift economic growth onto a low carbon pathway is a central challenge for policymakers. Developing countries are increasingly looking for ways to stimulate investment opportunities in low carbon and energy efficient options, creating markets and incentives to move the estimated $44 trillion of investment needed by 2030. Supporting the creation of market demand in developing countries - and removing or hedging some of the market risks - will be key in order to encourage the uptake of appropriate low carbon technologies.
Advance Market Commitments (AMCs) are market creation mechanisms that provide the incentives and guarantees needed to ensure sufficient returns on investment by private sector developers. Best known as a proposed solution for the development and manufacture of vaccines, the UK Department for International Development (DFID) is now exploring the use of AMCs to support low carbon technology deployment, while enhancing opportunities for low carbon growth. Ahead of the launch of a major DFID pilot initiative in March 2010, this event is an opportunity for delegates to debate and help develop the AMC concept.