Our energy and climate future increasingly hinges on decisions made in emerging market and developing economies, which face the challenge of developing in a way that meets the aspirations of their citizens while avoiding the high-carbon pathway that other economies have pursued in the past. Emerging market and developing economies are set to account for the largest source of emissions growth in the coming decades unless sufficient action is taken to transform their energy systems.
However, just when accelerated action is required, efforts to support clean energy in many emerging market and developing economies are faltering. The Covid-19 pandemic has stemmed the flow of new investments and is exacerbating pre-crisis imbalances in access to capital. Countries emerging from the crisis will miss an opportunity to “build back better” – creating more inclusive, resilient and sustainable societies – unless the flow of new clean energy projects increases dramatically.
The special report on Financing Clean Energy Transitions in Emerging and Developing Economies – produced in collaboration with the World Bank and the World Economic Forum – aims to address the challenge of funnelling investment towards clean energy transitions in these economies. Highlighted by real-world case studies, it analyses the outlook for investment across sectors that are crucial for clean energy transitions, assesses the key issues related to attracting finance, and provides advice on how policy reforms and financial mechanisms can work together to mobilise and align private finance.