According to a report by the EFE agency, there is an urgent need for investments in clean energy in developing and emerging economies to triple by the year 2030. This increase is required to align with international objectives set to mitigate the effects of climate change.
The report, which was released on Wednesday by the globally renowned International Energy Agency (IEA) and International Finance Corporation (IFC – a World Bank institution), anticipates that investments will need to surge from the current $770 billion in 2022 to a minimum of $2,800 billion annually by the start of the 2030s. This projection is based on data collected and analyzed by both the IEA and the IFC, as reported by Agerpres.
Furthermore, the IEA and IFC have emphatically stressed that the enormity of the task at hand cannot be accomplished with public funds alone. In order to provide universal access to energy in these countries and adequately tackle the issue of climate change, additional sources of funding are essential.
The report highlights the crucial role of private financing in this endeavor. It must not only increase but must do so at a rapid pace, far exceeding the current $135 billion to reach a minimum of $1.1 trillion annually by the commencement of the next decade. The report’s authors propose that a viable way to mobilize private funds is through a partnership with public financing entities, which could aid in reducing the risks associated with these projects.
The majority of the funding for clean energy should come from private sources, with private funds accounting for two-thirds of the total.
The Executive Director of the IEA, Fatih Birol, has expressed concern that the energy sector, though progressing swiftly, poses a significant risk of leaving many countries behind. Birol says, “The required investment is far beyond the capacity of public financing alone, which makes it urgent to rapidly scale up more private financing for clean energy projects in emerging and developing economies.”
The report was unveiled ahead of a significant meeting scheduled by French President Emmanuel Macron. The meeting, set to be held on Thursday and Friday in Paris, aims to establish a new global pact to combat poverty and devise effective measures to fight climate change
Source: energynomics.ro
