Annual clean energy investments from the private sector to emerging and developing economies need to more than triple from US$770 billion currently to US$2.8 trillion by the 2030s to align with the Paris agreement, a new report from the International Energy Agency (IEA) and International Finance Corporation (IFC) has said. The report emphasised the need for international technical, regulatory and financial support to unlock more private investment into emerging and developing economies. Another finding highlighted the potential for issuing more green, social, sustainable and sustainability-linked bonds – provided that industry guidelines, harmonised taxonomies and robust third-party certification are developed. The report also detailed the opportunity in platforms that aggregate and securitise many investments, which could overcome the asymmetry between the relatively small size of energy transition projects in emerging and developing economies and the relatively large minimum investment size that major institutional investors require. In related news, the International Renewable Energy Agency (IRENA) World Energy Transition Outlook 2023 has called for annual renewable power additions of 1,000 GW by 2030 to keep 1.5°C climate target within reach.
This morning, we launched a new joint report with @IFC_org on Scaling Up Private Finance for Clean Energy in Emerging & Developing Economies 📢
Don't miss this short thread from our Executive Director @fbirol running through the key findings ⬇️ https://t.co/ek7eNrXxHh
— International Energy Agency (@IEA) June 21, 2023
