Role Of Blended Finance In Energy Transition

The Paris Agreement and United Nations Sustainable Development Goals, negotiated in 2015, represented an inflection point for moving from talk to action to address the world’s most significant challenge, “Global Warming”.

Recent studies have shown that we are getting measurably closer to temporarily reaching 1.5°C above the pre-industrial level for at least one of the following five years; this calls for countries to take concerted climate action to reduce greenhouse gas emissions to limit global warming.

The world continues to advance towards sustainable energy targets. Nevertheless, the current pace of progress is insufficient to achieve Goal 7: Affordable and clean energy by 2030. Huge disparities in access to modern sustainable energy persist, leaving the most vulnerable even further behind.

The combined challenges of energy access and climate change present major needs for clean energy investment.

The objective is clear: Achieving energy and climate goals by limiting global warming to, at most, 1.5°C while bringing electricity to the more than 1 billion people globally who do not yet have access to it. This objective requires mass mobilizing public and private capital for clean and renewable energy, especially in developing countries.

Blended finance is an innovative financing approach that leverages public or…