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The document outlines the role of fossil fuel transition strategies in shifting power sectors toward clean energy, driven by the fact that renewables are now the lowest-cost power source for most countries. It examines how utilities and governments are utilizing new financing and reinvestment opportunities to transition coal fleets and limit new gas infrastructure while mitigating impacts on ratepayers.

The document argues that market innovation is critical for the energy transition, as evolving market parameters help systems accommodate higher levels of variable and distributed energy resources while maintaining reliability and affordability. It notes that maturing markets are currently improving the economics of renewables and putting pressure on coal economics. The guide provides global trends, case studies, and analysis of how market structures can advance seven key outcomes for global energy transformation.

H2 Energy Sdn Bhd installed a 2.88 kWp solar-powered hydrogen system at the Long Loyang Clinic in Sarawak on 8 August 2022. The system provides 24/7 electricity for essential medical equipment and refrigeration, replacing a costly and irregular diesel-based supply. The project is estimated to benefit 2,172 people indirectly and avoid 6 tonnes of CO2 annually. H2 Energy is exploring further scalable applications for rural clinics, schools, and settlements in Malaysia, Australia, and Cambodia.

The guide outlines five key tips for understanding decarbonization models, emphasizing that they are often deterministic 'black box' optimizations that may prioritize lowest cost over the best societal outcome, overlook non-electric sectors, undervalue grid reliability, present scenarios as predictions rather than possibilities, and rely on implausible assumptions regarding implementation and infrastructure.

The document examines how countries in the Global South can achieve energy access and economic growth by leveraging clean energy instead of relying on liquefied natural gas (LNG). Using South Africa and Vietnam as case studies, it suggests that renewable energy is increasingly competitive and that gas power plants supplied by imported LNG will play a smaller role in affordable grid expansion than previously assumed.

The We Mean Business Coalition calls for urgent global action at COP27 to keep the 1.5°C goal within reach, advocating for a partnership between business and government to halve global emissions by 2030. The Coalition emphasizes the need for a sectoral Mitigation Work Programme, scaled-up adaptation finance for vulnerable nations, and the fulfillment of the US$100 billion annual climate finance commitment.

The report finds that LNG developments in Mozambique and Tanzania face significant transition risks, with asset values potentially dropping by 61% and 69% respectively in a 'Well Below Two Degrees Centigrade' (WB2C) scenario. In a 'Net Zero by 2050' (NZE) scenario, most projects would become uneconomic or 'value destructive' for investors. The authors argue that pursuing domestic gas-led industrialisation could further erode the viability of export projects and may require substantial government subsidies, potentially costing Tanzania approximately $5 billion over 30 years. Consequently, governments face material downside risks to public finances, as they intend to use gas revenues for public expenditure.

The report provides a comprehensive overview of the climate finance landscape in Bangladesh, India, and Nepal, detailing the mechanisms used to fund climate action. It analyzes the roles of multilateral funds (such as the GCF and GEF), bilateral aid, national budgets, and emerging private sector instruments like green bonds and blended finance. The document highlights significant funding gaps, particularly for adaptation, and recommends strengthening institutional frameworks, adopting climate budget tagging, and improving technical capacity to develop bankable projects.

As of September 30, 2022, the cumulative issuance of GSS+ bonds exceeded $3.5 trillion, with green bonds surpassing $2 trillion. While the market saw a decline in Q3 2022 compared to previous periods due to geopolitical and macroeconomic factors, green bonds remained the dominant type, accounting for 52% of issuance year-to-date. International organizations are the largest issuers, and the market is heavily concentrated in Euro, US Dollar, and RMB denominations. A dedicated section highlights the Middle East and Africa market, which has reached $33.3 billion in cumulative issuance, characterized by a high proportion of green bonds and sustainability-linked bonds (SLBs).

IDFC members reported a record $224 billion in green finance commitments in 2021, with climate finance accounting for 95% of the total. Mitigation finance reached $186.6 billion, while adaptation finance decreased by 24% to $20.9 billion. Biodiversity finance grew by 31% to $18.4 billion. The majority of climate finance was provided by non-OECD institutions and directed toward the East Asia and Pacific region.

In 2019/20, Ethiopia's tracked climate finance averaged USD 1.7 billion, representing only 7% of its estimated annual needs of USD 25.3 billion. The landscape is heavily dominated by international public finance (92%), with a strong preference for adaptation projects (56%) over mitigation (38%). While the Agriculture, Forestry and Other Land Use (AFOLU) sector received the most sectoral finance (29%), it remains significantly underfunded relative to its 83% contribution to national GHG emissions. Key barriers to scaling finance include a highly regulated financial sector, lack of a stock market, unfavorable collateral policies for SMEs, and a heavy reliance on grants over private capital. The report recommends establishing a comprehensive climate budget tagging system, conducting bottom-up needs assessments, and developing capital markets to mobilize private investment.

In 2019/20, Ethiopia's tracked climate finance averaged USD 1.7 billion per year, representing only 7% of its estimated annual needs of USD 25.3 billion. The landscape is heavily dominated by international public finance (92%), with a strong preference for grants (70%) and a focus on adaptation (56%) over mitigation (38%). While the Agriculture, Forestry and Other Land Use (AFOLU) sector received the most sectoral finance (29%), it remains underfunded relative to its 83% contribution to national GHG emissions. Significant barriers to private investment include a highly regulated financial sector, lack of a stock market, and unfavorable collateral policies for SMEs and small-holder farmers.

The document identifies critical gaps in the support system for Local Green Entrepreneurs (LGEs) in South Africa, specifically highlighting that while SMMEs contribute to carbon reduction, they face significant 'green funding gaps'. It argues that current policies, such as the Draft SMME and Cooperative Funding Policy, fail to explicitly recognize LGEs. The brief identifies five 'signature issues', including the limited risk appetite of funders and compliance-driven ESG requirements. To address these, it recommends the development of a Green Economy Framework, the use of credit guarantee schemes like the sefa Innovation Fund, and the reduction of bureaucratic 'red tape' in certification processes to foster a more inclusive green recovery.

The report examines the impact of global decarbonisation on Africa's natural gas sector, distinguishing between existing and emerging producers. It argues that faster global transitions to net-zero emissions will reduce LNG demand and prices, creating 'external' climate transition risks that threaten the viability of future projects. The analysis suggests that domestic demand is an insufficient hedge against these risks due to regulated low prices and the increasing competitiveness of renewable energy. Emerging producers are identified as particularly vulnerable due to weaker sovereign credit ratings and the timing of their infrastructure investments.

Zambia is positioned to benefit from the global demand for copper and cobalt driven by the energy transition, but faces challenges from a history of unstable mining taxes and poor relations with investors. The briefing recommends adopting a profit-based Mineral Royalty Tax (MRT) to encourage capital investment and exploration, particularly as ore grades decline and underground mining costs rise. It also calls for clarifying the role of Zambian Consolidated Copper Mines Investment Holdings (ZCCM-IH) and resolving disputes with companies like Vedanta Resources to restore investor confidence.

The policy brief argues that the USD 8.5 billion Just Energy Transition Partnership (JETP) in South Africa relies on a 'de-risking' model that prioritises private finance and Independent Power Producers (IPPs), shifting commercial risks to the state and consumers. This approach is criticised for potentially worsening South Africa's debt profile, increasing energy poverty through higher tariffs, and undermining local renewable energy manufacturing. The authors suggest alternatives including the regulation of PPPs, debt cancellation of 'odious debt' (such as World Bank loans for the Medupi plant), climate reparations, and the implementation of allocative green credit policies to direct investment toward productive, labour-intensive green industries.

The document examines the role of Just Energy Transition Partnerships (JETPs) in facilitating the shift from fossil fuels to clean energy in five emerging economies. It argues against the use of natural gas as a 'bridging fuel,' citing price volatility, the risk of stranded assets, and methane emissions. Instead, it advocates for 'leapfrogging' directly to renewables, noting that solar and wind are cost-competitive and better suited for expanding energy access in rural areas. The brief emphasizes that a gas-led transition would be economically disadvantageous and inconsistent with the 1.5°C Paris Agreement goal.

In 2022, 1.2 billion rural and urban poor were at high risk due to lack of cooling access, an increase of 28 million from 2021. An additional 2.47 billion lower-middle-income people are at medium risk, while 1.36 billion middle-income people are at low risk. The report highlights that while electricity access has improved, income and urbanization trends drive cooling demand, with significant risks concentrated in Africa and the 'Critical 9' countries.

The report identifies growing risks to people and the planet due to cooling access gaps, estimating that 166.3 million people in 22 non-high-impact countries with extreme heat hazards are at risk. It emphasizes that achieving universal electricity access and eradicating extreme poverty by 2030 is critical to reducing these risks, while linking progress in renewable energy and energy efficiency to climate action.

The report projects that under current trends, 1.22 billion people will be at high risk of lacking cooling access by 2030. While achieving universal electricity access (SDG 7.1.1) alone provides limited relief, combining it with the eradication of extreme poverty (SDG 1.1) could reduce the high-risk population by 36 percent to 783.3 million. The analysis highlights that urban poor populations are growing due to urbanization and the urban heat island effect, while rural poor populations in Africa remain particularly vulnerable. The report emphasizes that income and energy access are critical prerequisites for the adoption of sustainable cooling solutions.