The OECD Clean Energy Finance and Investment Mobilisation (CEFIM) Programme aims to strengthen domestic enabling conditions for investments in clean energy, including renewable power and energy efficiency, as well as decarbonisation of industry, in emerging economies. The Programme supports the development of policies and instruments to help scale up a pipeline of bankable clean energy projects.
Finance and investment for clean energy and industry
OECD work supports efforts to mobilise finance and investment for clean energy and industry decarbonisation to deliver just energy transitions and improve access to affordable clean energy, especially in emerging markets and developing economies.
Key messages
The Climate Club, an international coalition of 38 climate-ambitious countries, supports the implementation of climate goals to achieve the Paris Agreement's targets, through promoting climate mitigation policies (Pillar I), advancing the enabling conditions for industrial decarbonisation (Pillar II), and boosting international partnerships and co-operation (Pillar III).
Context
Industrial decarbonisation faces technological and financial challenges
The global annual clean energy investment in the industry sector stood at less than USD 50 billion between 2016 and 2020 on average. By 2030, investments need to quadruple to reach nearly USD 200 billion per year. A majority of these investments will need to happen in emerging and developing economies. There are two sides to this problem: there is a limited supply of public finance for industry decarbonisation, and there is a lack of tailored instruments to de-risk projects for mobilising private capital. Financing risks and challenges for industry decarbonisation stem from the high upfront costs of most low-carbon technologies, a majority of which remain at the early stages of commercialisation. Additionally, access to capital is limited and expensive, reflecting financial, regulatory, political and technological risks.
