Finance Industry Transition Global South

This thought piece examines the financial barriers and business cases for mobilizing investments in low-carbon industrial production within the Global South, highlighting the need for policy interventions, innovative business models, and custom solutions to address risks that are more complex than those found in the renewable energy sector.

• Industrial energy efficiency in the Global South suffers from underinvestment caused by financial constraints and perceived risks, requiring policy interventions that align with a post-2030 timeline for low-carbon solutions.
• Because low-carbon solutions are expensive, innovative business models are necessary. Improvements to the basic business case for green industrial production in the Global South must precede the application of commercial-scale financial risk mitigation to address access to finance issues.
• Decarbonizing industry is more difficult than deploying renewable energy due to higher market risk, technology uncertainties, and a lack of risk management structures.
• Transitioning industry in the Global South requires custom solutions and international finance mobilization, as the policy directives, financial incentives, and decarbonization roadmaps present in developed markets may not exist in developing and emerging markets.

APA

Stockholm Environment Institute (2023). Finance Industry Transition Global South. https://www.sei.org/publications/finance-industry-transition-global-south/

Chicago

Stockholm Environment Institute. Finance Industry Transition Global South. 2023. https://www.sei.org/publications/finance-industry-transition-global-south/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Finance Industry Transition Global South |date=14 June 2023 |url=https://www.sei.org/publications/finance-industry-transition-global-south/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2023finance, author = {{Stockholm Environment Institute}}, title = {{Finance Industry Transition Global South}}, institution = {Stockholm Environment Institute}, year = {2023}, month = jun, url = {https://www.sei.org/publications/finance-industry-transition-global-south/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }