Rethinking clean energy investment in EMDEs is a dual opportunity. Here's why

Clean energy investment in emerging markets and developing economies (EMDEs), excluding China, currently stands at $270 billion annually, representing only one-fifth of global investment despite these economies accounting for over one-third of global GDP. To support low-carbon development, this investment must increase five to seven times to reach at least $1.7 trillion by the early 2030s. The document challenges the 'aid case' narrative that suggests a trade-off between profit and development, asserting that clean energy in EMDEs offers a 'dual opportunity' for long-term performance and inclusive growth. Barriers to investment include market volatility, policy uncertainty, and low credit ratings, with 74% of EMDEs rated B+ or lower. To address this, the World Economic Forum's Network to Mobilize Clean Energy Investment in EMDEs has produced a Playbook of Solutions featuring 100 case studies across 47 EMDEs, focusing on policy measures, de-risking tools, and finance mechanisms. Examples of success include Egypt's use of a holistic approach to multiply wind and solar output and the Africa Finance Corporation's all-equity bridge financing for a wind farm in Djibouti.

• There is a significant gap in clean energy investment for EMDEs (excluding China), which currently receive only one-fifth of global investment despite holding more than one-third of global GDP and being projected to account for 74% of energy consumption by 2050.
• Annual clean energy investment in EMDEs (excluding China) needs to rise from $270 billion to at least $1.7 trillion by the early 2030s, an increase of five to seven times, to support low-carbon development.
• Low credit ratings act as a major barrier to private investment; 74% of EMDEs have a sovereign risk rating of B+ or lower, which often falls outside the acceptable limits for private investors due to regulatory and fiduciary obligations.
• The World Economic Forum's Playbook of Solutions provides 100 replicable case studies from 47 EMDEs to demonstrate that clean energy investment can deliver both financial returns and development impact through policy measures, de-risking tools, and finance mechanisms.
• Specific successful implementations include Egypt's Country Platform for the Nexus of Water, Food and Energy, which mobilized $3.9 billion in private investment for 4.2 GW of renewable energy, and the Africa Finance Corporation's use of all-equity bridge financing for a 60MW wind farm in Djibouti.

APA

Al-Mashat, R. (2025). Rethinking clean energy investment in EMDEs is a dual opportunity. Here's why. World Economic Forum. https://www.weforum.org/stories/energy-transition/rethinking-clean-energy-investment-in-emdes/

Chicago

Al-Mashat, Rania. Rethinking clean energy investment in EMDEs is a dual opportunity. Here's why. World Economic Forum, 2025. https://www.weforum.org/stories/energy-transition/rethinking-clean-energy-investment-in-emdes/.

Wikipedia

{{cite press release |last1=Al-Mashat |first1=Rania |title=Rethinking clean energy investment in EMDEs is a dual opportunity. Here's why |publisher=World Economic Forum |date=15 January 2025 |url=https://www.weforum.org/stories/energy-transition/rethinking-clean-energy-investment-in-emdes/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{almashat2025rethinking, author = {Al-Mashat, Rania}, title = {{Rethinking clean energy investment in EMDEs is a dual opportunity. Here's why}}, publisher = {World Economic Forum}, year = {2025}, month = jan, url = {https://www.weforum.org/stories/energy-transition/rethinking-clean-energy-investment-in-emdes/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }