The International Energy Agency’s recent finding that clean energy investment would be twice that of hydrocarbon projects by 2024 brings good and bad news.
The good news is that clean energy investments will surpass $2 trillion for the first time ever, but unfortunately the majority of that investment is in the Global North. It is believed that only 15% of those record investments will go to the South, which includes developing countries in Africa, Latin America, South Asia and Southeast Asia. This is significantly less than what these countries need to meet their energy needs and transition to clean energy in an affordable way.
With the Global South accounting for 56% of the world’s population but only 18% of energy generation capacity, the question remains: how can emerging and developing economies secure the clean energy financing needed not only to keep pace with the global energy transition, but also to safeguard their energy security? Achieving this balance is critical to ensuring these countries’ economic resilience and building a more equitable global energy landscape.
It’s a question that people in the energy sector are very familiar with, as it has been a major focus of ongoing discussions between the energy industry, governments, intergovernmental organizations and policymakers. As CEO of a global coalition committed to collaboration, I believe there are important actions that can achieve more equitable and affordable access to clean energy worldwide, even though specific solutions may vary by country. These broad measures are not only necessary but essential to achieve meaningful progress on a global scale.
First, we need to connect those involved in clean energy security in the global North and South. Knowledge sharing and collaboration across regions, sectors and specializations can have a multiplier effect and transformative impact on clean energy financing efforts. In particular, public-private partnerships (PPP) can pool resources, share expertise and drive sustainable energy projects, while sharing knowledge at the expert level can improve outcomes by avoiding pitfalls and identifying easy wins.
By sharing knowledge, those working to improve clean energy financing in the Global South can learn about the best technologies and systems to achieve the required goals. At the same time, those working on the ground in the Global South have invaluable expertise that they can share with technology developers and solution providers to identify challenges and highlight specific local needs, which can lead to the development and identification of locally relevant solutions. Many countries in the Global South have unique infrastructure challenges, climates, landscapes and resource availability, which must be taken into account in clean energy planning and financing to ensure maximum viability.
Within the technology domain, some emerging technologies are expected to have an outsized impact on clean energy security, such as artificial intelligence (AI) and digitalization. AI can help predict and balance multi-energy microgrids that can include different sources of clean and conventional energy forms. According to the Argonne National Laboratory, integrating AI into the design of clean energy projects can potentially reduce project planning timelines by 20%, which could translate into massive savings. AI can also enable network optimization, is efficient and avoids waste, and can dynamically manage energy storage and network response. Digitalization technologies such as the Internet of Things (IoT) can enable utilities to manage demand during peak times, while data analytics can support better operational decisions.
And of course, the most important aspect of clean energy security in the Global South is ensuring access to the right financing and investments in clean energy. While increased commitments to finance clean energy projects in the South have helped address traditional investment gaps, especially after COP28, challenges remain in accessing the capital. For example, one of the main problems in securing financing and investments for clean energy projects in the South is the perception of risk and the associated high costs. Collaborating with established clean energy companies and solution providers and leveraging technologies that can improve efficiency and reduce costs can improve the results of techno-economic feasibility assessments.
Having worked in various roles in the energy industry, I have witnessed firsthand how collaboration, technology and equitable access to financing are not only helpful, but essential to driving clean energy financing on a global scale. dish. The potential for energy-driven economic growth is enormous, but it can only be unlocked through these strategic changes, like the ones we are already seeing taking root at the Global Impact Coalition.
Take for example SUEZ, a global leader in circular water and waste solutions, who joined us in the Global Impact Coalition in September 2024. This move strengthened SUEZ’s ability to collaborate in the chemical and energy sectors, while also strengthening the coalition’s mission. to achieve net-zero emissions. Backed by major players such as Mitsubishi Chemical Group, SABIC, BASF and Covestro, the coalition has made significant progress, including developing new plastic waste processing technologies that not only reduce the carbon footprint but also make the process more affordable by reducing increase the efficiency of polymer recycling. . These partnerships and technological developments are not just symbolic gestures; they are the driving force behind the chemical industry’s efforts to lead the energy transition and realize the potential of sustainable growth.
The lesson here is undeniably clear: collaboration, whether through knowledge exchange, technology or direct investment, is the linchpin of a successful energy transition. But this need for cooperation is especially acute in the Global South, where clean energy security and investment depend on such partnerships. Without them, the promise of a just, affordable and sustainable energy future will remain out of reach for many.
To foster such partnerships, we must support international events such as ADIPEC, the world’s premier energy event currently in Abu Dhabi, where real connections are forged and transformative agreements are created and expanded. With participants from 160 countries and more than 2,220 organizations, the event promotes a collaborative environment, prioritizing diversity, equality and inclusivity to ensure voices from around the world can unite around the shared mission to realize the future energy system .
The Global Impact Coalition is proud to participate in leading events such as ADIPEC, where our ambitions for a low-carbon future are fully aligned. Our goal to completely reduce greenhouse gas emissions from the chemical industry is not just a goal, it is a necessity. To achieve this, we leverage both existing and future collaborations to enable a greater push towards energy technology and energy access. By doing this, we want to ensure that the energy transition is not just about decarbonisation, but also about delivering energy security, affordability and sustainability on a global scale.
By leveraging cost-saving and cost-reducing technologies, sharing knowledge and expertise, and securing mutually beneficial partnerships, the collective international community can work together to ensure that the energy transition is truly affordable, equitable and sustainable.