A Tale of Two Countries : Financing Renewable Energy in Nigeria and Brazil

It is widely acknowledged that in order to achieve a rapid transition to a low carbon economy, significant decarbonization of the energy sector is necessary. However, mobilizing financing for renewable energy has been faced with numerous barriers and risks, especially in developing countries. This paper reviews renewable energy financing trajectories of Nigeria and Brazil using a comprehensive analytical framework covering the financing environment, channels, and instruments. Drawing on experiences from Brazil and other countries, important lessons are proposed for Nigeria, which include the need for sound policy and regulatory framework, innovative use of public and concessional finance to leverage private investments, and diversification of financing instruments