التكنولوجيا وأخبارها بوابة الإمارات لتكنولوجيا المعلومات والإتصالات
Ahead of the 2023 United Nations Climate Change Conference (COP28),
taking place in Dubai (30 November – 12 December 2023),
the globally leading professional services firm,
Deloitte, released a report titled Financing the Green Energy Transition, showcasing
that new cost-reducing finance instruments can help de-risk green
projects in developing economies while making investing in these projects more
attractive, helping to fuel a global just energy transition.
Achieving net-zero greenhouse gas emissions by 2050 will require an annual
global investment in the energy sector ranging from US$5 trillion to US$7 trillion. However,
the world currently invests less than US$2 trillion each year into the transition,
which is far short of the financing needed to help put
the world on course to meet our collective climate goals.
The report found that green projects currently suffer from underinvestment
and high required return rates because private investors tend to see green
technologies as riskier than alternative investments.
The report highlights the need for governments, financial institutions, and
investors to jointly develop mechanisms to help mitigate
risk from green projects by developing blended,
low-cost finance solutions to mobilize private investment and help achieve
economic growth and climate neutrality—especially in emerging economies.
It also highlights the benefits of taking action—the projected savings of US$50
trillion through 2050 could reduce the annual investment needed by over 25%.
The report goes beyond finance to provide a holistic overview,
employing analysis and modeling to consider the technology landscape,
policy environment, and a matrixed vision of financing challenges.
“Just as we are continually developing solutions and technology to rapidly decarbonize,
we must take definitive steps to remove financial barriers in order to accelerate a just energy transition,
especially in developing economies,” says Jennifer Steinmann,
Deloitte Global Sustainability and Climate practice leader.
“Decisive and coordinated policy support and hand-in-hand action across the
global finance ecosystem are critical to guiding investments toward green
projects and supporting the growth of sustainable economies.”
To win the race to net-zero, the world must invest wisely and identify areas for
cost reduction. For instance, less than half of green investments are currently
made in developing economies mostly due to greater risks and stricter public
budget constraints for energy transition projects.
However, to reach net-zero, nearly three-quarters of green investments (70%)
would need to be made in developing economies by 2030 as these nations look
to new, sustainable infrastructures and technologies.
“To further lighten the financial burden on the Global South, governments, financial
institutions and international organizations must implement
concessional finance—a loan made on more favorable terms than the borrower
could obtain in the market—through innovative financing structures that
mobilize private capital for climate action,” says Hans-Juergen Walter, Global
Financial Services Industry Sustainability and Climate leader.
“Major financial institutions, such as development
banks and multilateral funds, play a pivotal role in this context.”
