DUBAI: The World Economic Forum last week launched a digital platform outlining 100 policy measures, finance mechanisms and de-risking solutions in 47 emerging and developing economies.
Known as the Playbook of Solutions, it was assembled by the Network to Mobilize Investment for Clean Energy in the Global South, which was launched at the WEF’s annual meeting in Davos in January.
Emerging markets and developing economies will represent 90 percent of the growth in global energy demand by 2035, according to a report by the International Energy Agency and International Finance Corp.
Yet these countries, which are home to a majority of the world’s population, account for less than a fifth of global clean energy investments, the report said.
In order to speed up the transition to clean energy and triple renewables by 2030, the annual average investment in renewable energy will need to reach at least $1.7 trillion by 2030, it said.
With this in mind, the Playbook of Solutions aims to guide governments, finance institutions and energy companies regarding their approach toward energy transition project financing in emerging markets.
It also highlights the need for a multipronged approach of policy action, de-risking tools and innovative financing mechanisms to unlock the $1.7 trillion needed in the Global South.
“The MENA region has shown remarkable advancements in its energy transition over the past decade,” Roberto Bocca, head of the WEF’s Center for Energy and Materials, told Arab News.
He said that according to the WEF’s latest Energy Transition Index, the region’s energy transition scores had increased by 7 percent overall, “with a substantial 22 percent rise in transition readiness.”
This progress “reflects the importance and efficacy of implementing a comprehensive blend of policies and strategies to unlock clean energy investment” and the new playbook “showcases various tools and measures for achieving this,” he said.
The playbook also highlights the success stories of four countries: Egypt, India, Chile and Brazil and how they raised billions in clean energy capital through a combination of strategies including policy measures and finance platforms.
“Country-led commitment reforms and platforms are critical to align sustainable development efforts in a way that prioritizes national objectives and accelerates progress toward a just, green transition,” said Rania Al-Mashat, minister of planning, economic development and international cooperation of Egypt and co-chair of the Network to Mobilize Investment for Clean Energy in the Global South.
The playbook “provides an effective way to exchange best practices and lessons learned between peer countries, thus unlocking just financing solutions that accelerate progress toward a just energy transition,” she said.
