The Islamic World Educational, Scientific and Cultural Organization (ICESCO) has published a comprehensive new report titled “Best Practice Financial Support and Standards for Small & Medium-Scale Renewable Energy Projects”, prepared in collaboration with Climate Finance Asia.
The report responds to the global commitment made at COP28 to triple renewable energy generation and double energy efficiency by 2030. The publication identifies best practices to unlock private investment, enhance grid access, and strengthen capacity-building. It emphasizes that small and medium-scale renewable projects are key to reaching remote communities, diversifying energy sources, and stimulating local economies.
Furthermore, it comprises recommendations that provide a roadmap for ICESCO Member States to accelerate renewable energy deployment, with a focus on practical financial mechanisms, technical standards, and policy frameworks that support small-scale renewable initiatives essential for sustainable and inclusive growth.
Five Key Recommendations:
- Set Ambitious and Aligned National Targets: ICESCO member states are urged to reaffirm the COP28 goals, integrate renewable energy ambitions into updated Nationally Determined Contributions (NDCs), and conduct national resource assessments to identify priority projects and technologies.
- Create Supportive Policy and Financial Frameworks: Governments should establish stable and transparent markets for renewable energy through mechanisms such as feed-in tariffs, contracts for difference, and renewable portfolio standards. Introducing carbon pricing, reforming electricity markets, and reducing grid-connection costs will encourage private-sector participation.
- Unlock Green and Islamic Finance: The report highlights the potential of innovative financing tools—including green sukuk, waqf-based investment, and a proposed Green Credit Guarantee Fund—to attract ethical capital and reduce investor risk for small and medium-scale projects.
- Strengthen Technical Standards and Capacity-Building: Regional cooperation on harmonized technical standards, training, and certification will ensure quality, safety, and investor confidence. The report also calls for programs to build local expertise in project design, finance, and maintenance, supporting domestic manufacturing and supply chains.
- Integrate Efficiency and Local Benefits: Complementing renewable generation with stronger energy-efficiency standards—such as appliance labelling and building codes—will reduce demand and improve sustainability. Small and medium-scale projects, in particular, can deliver strong social and economic benefits by creating jobs and empowering communities.
The report marks the first in a series of ICESCO initiatives to advance renewable energy and energy efficiency across its 53 member states through training, policy development, and knowledge-sharing programs.