Clean energy: Govt, biz leaders commit to triple investments in emerging economies

Davos: More than 20 ministers and CEOs from various countries including India on Wednesday joined a World Economic Forum alliance to unlock an estimated funding of $2.2-2.8 trillion needed for the Global South's clean energy transition. Announcing the launch of the alliance at its Annual Meeting 2024, the WEF said it will provide a platform for developing economies to raise awareness about their clean energy needs, share best practices and sustainably accelerate their energy transitions. The Network to Mobilize Clean Energy Investment for the Global South is made up of over 20 CEOs and government ministers, including from across Colombia, Egypt, India, Japan, Malaysia, Morocco, Namibia, Nigeria, Norway, Kenya and South Africa.

The Forum also released a new report, Building Trust through an Equitable and Inclusive Energy Transition, that outlines a framework to guide policy-makers and business leaders from the energy sector towards a just, equitable and inclusive energy transition, particularly in developing economies, which account for less than one-fifth of global clean energy investments. The overall annual investment in clean energy in the Global South needs to triple from $770 billion currently to $2.2-2.8 trillion by the early 2030s, it said. While recent spending has increased, the report finds that it remains concentrated in a few countries and sectors, with over 90 per cent of investment growth having occurred in advanced economies and China since 2021.

In recent years, emerging economies like China and India have demonstrated their ability to rapidly adopt and even lead in new energy technologies and value chains, the report said. India has substantially expanded its renewable energy capacity and made advancements in clean hydrogen. To reduce uncertainties associated with these technologies, facilitate their widespread adoption and foster further innovation, it is imperative to strengthen international cooperation, promote knowledge sharing among stakeholders and adapt solutions to local contexts and priorities, the WEF said. It also said that countries like India, Brazil and parts of the Middle East have seen an increase in clean energy investments and projects, progress has been slower in many other emerging and developing economies, particularly in investments aimed at expanding and modernizing grids.