Developing countries 'left behind' in clean energy shift

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The sum will need to rise from about $260 billion this year to $1.4 trillion to $1.9 trillion per year by the early 2030s to meet climate goals and meet energy demand, the IEA said, but There is growing competition from richer nations. “Today's energy world is moving fast, but there is a great risk that many countries around the world will be left behind,” warned Fatih Birol, executive director of the IEA. His comments came as the IEA published a report on Wednesday arguing that around 60 percent of the investment required will need to come from the private sector, but that investors are put off by the higher cost of capital reflecting "real and perceived risks.“At the moment, the cost of capital for a typical large-scale solar project can be two to three times higher in key emerging economies than in advanced economies or China,” the report says. Policies designed to attract investment to Europe and the US help boost innovation, but also "make it more difficult" for emerging markets to compete for private capital, the IEA added.

Recommended Birol told the Financial Times that he hoped the Biden administration's Inflation Reduction Act, which includes $369 billion in subsidies to boost clean energy in the US, would prove to be an overall Russia Mobile Number List positive global stimulus. “I very much hope that this will not be a burden on other countries in the world and that there will be some flexible mechanisms that provide incentives for others.” He noted that investment in clean energy in developing countries was “almost flat” since the Paris Agreement in 2015, which committed countries to limiting global warming to 1.5°C above pre-industrial levels. "Is not sufficient. “For me, this is the failure to achieve our energy and climate goals.



New green bonds, voluntary carbon credits and better data that reflects the real risks and returns of investing in emerging markets can help push money in their direction, according to the IEA report. He also called for reforms in planning and regulation to help “guide investment decisions toward cleaner, more efficient technologies.” Larger projects need to be developed as many investors “don't want to invest $10 million here or $20 million here, they want billions so they can go to their board,” said Makhtar Diop, CEO of the International Finance Corporation. The IEA said action aimed at boosting investment could prove a “huge opportunity” for growth and jobs, which would be “fundamental”. . . to the energy and climate future of the world.