The recent International Energy Agency’s finding that clean energy investment in 2024 would be twice that of hydrocarbon projects has come with good and bad news.
The good news is that clean energy investment is set to exceed US$2 trillion for the first time ever, but unfortunately, most of that investment is taking place in the Global North. Only 15% of that record investment is thought to be going to the Global South, which includes developing nations in Africa, Latin America, South Asia, and Southeast Asia. This is significantly less than what these nations need to meet their energy needs and transition to clean energy affordably.
With the Global South accounting for 56% of the world’s population but only 18% of its power generation capacity, the question remains: How can emerging and developing economies secure the clean energy finance needed not only to keep pace with the global energy transition but also safeguard their energy security? Achieving this balance is critical for ensuring the economic resilience of these nations and for building a more equitable global energy landscape.
It is a question those in the energy sector are well acquainted with, as it has been a major focus of ongoing discussions between the energy industry, governments, intergovernmental organisations, and policymakers. As CEO of a global coalition dedicated to collaboration, I believe there are key actions that can drive more equitable and affordable access to clean energy worldwide, even though the specific solutions may vary by country. These broad measures are not only necessary but essential to achieving meaningful progress on a global scale.
Firstly, we must connect those involved in clean energy security in the Global North and South. Knowledge sharing and collaboration across geographies, sectors, and specialisations, can have a multiplier effect and transformational impact on clean energy finance efforts. Public-Private Partnerships (PPP) in particular can pool resources, share expertise, and drive sustainable energy projects, while expert-level knowledge sharing can improve outputs by avoiding pitfalls and identifying easy wins.
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