Emerging markets can’t pay costs of the zero-carbon transition alone
Urgency and innovation are required to fill the climate-finance gap
Channelling finance to emerging and developing economies is essential to tackle climate change. It is in these countries where the bulk of clean-energy investment is needed to hit the world’s net-zero targets.
According to a new report from the International Energy Agency (IEA), achieving global carbon neutrality by 2050 requires a sevenfold increase in annual clean-energy investment in the developing/emerging world, to $1-trillion, by 2030. Yet the same report concludes that “annual investments across all parts of the energy sector in emerging and developing markets have fallen by about 20% since 2016”.
At the June G7 meeting, we heard the familiar pledges to “support developing countries and emerging markets in making the most of the opportunities in the transition”. However, developed nations have still not delivered on a long-standing commitment from 2009 to collectively mobilise $100bn a year to help poorer nations address climate change...