The Global Environment Facility program to commercialize new energy technologies

The Global Environment Facility (GEF), a multilateral funding program created to support initiatives in developing countries to protect the global environment, is the largest and most important source of efforts to promote the development and introduction of climate-friendly energy technologies. In little more than a decade, the GEF has made commitments of over $ 350 million to about 10 promising new energy technologies based on guidance from its Scientific and Technical Advisory Panel (STAP). However, most of these projects have experienced substantial delays and many have been cancelled, and the GEF has recently assigned low priority to more such projects relative to activities like energy efficiency labeling and financing with greater likelihood of short-term impacts. This paper reviews the lessons of this experience in order to better understand the promise and pitfalls of this essential element of climate change policy.