IRENA – A Just and Inclusive Energy Transition in Emerging Markets

The report discusses the urgent need for a just and inclusive energy transition in emerging markets and developing economies (EMDEs) to limit the increase in temperature and improve the welfare of local communities. Despite the increasing global energy transition investments, there are disparities in investment patterns, with more funding going to advanced economies and a few large EMDEs like China, India, and Brazil. Sub-Saharan Africa, for example, received significantly less investment per capita, highlighting the need for addressing investment disparities and risks in EMDEs. To capture attractive investment opportunities in EMDEs, proper risk mitigation instruments and leveraging of public resources are essential. Investment risks vary within EMDEs, requiring specific measures and instruments tailored to each country context. Strong international collaboration is crucial in providing financial and technical support for energy planning and investment in EMDEs. Effective integrated energy planning, backed by robust governance structures and stakeholder engagement, is vital for aligning energy policies with socio-economic goals and boosting investor confidence while addressing climate and development objectives. The proposed Global Coalition for Energy Planning within the G20 aims to support decision-making on financing and investment in EMDEs through knowledge exchange, capacity building, and enhanced partnerships. The G20 can play a crucial role in expanding investment and improving energy planning in EMDEs by providing direct funding and capitalizing multilateral development banks and development finance institutions.