Context:
Multilateral Investment Guarantee Agency (MIGA) and International Solar Alliance (ISA) have announced the establishment of MIGA-ISA Solar Facility, a multi-donor trust fund.
MIGA and ISA Collaboration:
- MIGA: Part of the World Bank Group.
- Promotes cross-border investment in developing countries.
- Provides guarantees (political risk insurance and credit enhancement) to investors and lenders.
- India is a member.
- ISA and MIGA Collaboration:
- Combines ISA’s technical expertise and MIGA’s financing capacity.
- Aims to accelerate global adoption of solar energy, including cutting-edge technologies.
- Initial Focus: Sub-Saharan Africa, with plans for global expansion.
- Funding:
- ISA committed seed-funding of $2 million.
- Goal to raise $10 million for the facility.
Global Solar Facility (GSF):
- First Program: Under the guarantee component of ISA’s GSF.
- Aims to raise $200 million for projects in Africa.
- Objective: Catalyse solar investments through payment guarantees, insurance, and investment funds.
- Focus: Starting with Africa’s underserved segments.
- Provides cost-effective risk mitigation instruments.
- Supports growth of solar projects in ISA member countries.
- Attracts private investment by providing concessional financing (including first-loss instruments and reinsurance capacity).
- Helps lower costs and close the energy gap in underserved regions.
International Solar Alliance (ISA):
- Conceptualized: By India and France at CoP21 (Paris, 2015) of UNFCCC.
- About: Action-oriented, member-driven, collaborative platform for increased deployment of solar energy technologies.
- Drives energy transition in member countries.
- Aim: Guided by ‘Towards 1000’ strategy.
- Mobilize USD 1,000 billion investments in solar energy solutions by 2030.
- Deliver energy access to 1,000 million people using clean energy.
- Install 1,000 GW of solar energy capacity.
- Members: 100 countries ratified ISA Framework Agreement (including India).
- All UN member states are eligible to join (amendment of ISA Framework Agreement in 2020).
Source: ET
Previous Year Question
Consider the following statements:
1. The International Solar Alliance was launched at the United Nations Climate Change Conference in 2015.
2. The Alliance includes all the member countries of the United Nations.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2016 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (a)
