The Rise of Energy Finance Diplomacy

Solar panels, wind turbines, batteries and hydrogen technologies are advancing rapidly. But deploying them at scale requires enormous amounts of capital—not only for power generation, but also for electricity grids, storage facilities, ports and critical mineral supply chains. The scale of the challenge is already visible. The International Energy Agency estimated that global energy investment would reach $3.3 trillion in 2025, with about $2.2 trillion directed towards clean technologies. Yet investment remains heavily concentrated in advanced economies and China, while many emerging and developing countries face high borrowing costs and limited access to long-term finance. The IEA estimates that annual clean-energy investment in emerging and developing economies will need to more than triple by the early 2030s. This is changing [...]