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Common Risk Mitigation Mechanism (CRMM)

Financing of solar power generation assets in most developing countries suffers from a lack of risk mitigation tools, a high-risk perception among investors, high transaction costs, small project sizes, and lack of scale. To address this, CEEW, in collaboration with the Confederation of Indian Industry (CII), the Currency Exchange Fund (TCX), and the Terrawatt Intiative (TWI), designed the Common Risk Mitigation Mechanism (CRMM). CRMM is a multilateral platform that will pool multiple risks - political, off-taker, and foreign exchange risks - and have many participating countries, capitalised through multiple sources of international public money.

As part of CRMM’s pilot phase, a USD 1 billion guarantee could crowd in up to USD 15 billion of investments for 20 GW of solar PV capacity in more than 20 countries. The idea of CRMM received initial support from seventeen countries with high solar potential, including India, France, Australia, Mali, Nigeria, etc.

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