Recent multi-billion-dollar pledges to accelerate the adoption of renewable energy and improve access to electricity and clean cooking technologies by 2030 have pushed the total finance and investment commitments for the global energy transition past the trillion-dollar milestone. The second annual progress report on the Energy Compact reveals a rise in voluntary commitments made by governments and organizations to be executed by 2030. These commitments encompass planned expenditures by countries for domestic and international initiatives to enhance energy accessibility, efficiency, and the adoption of renewable energy sources. They also include private sector investments in these critical areas. However, to achieve Sustainable Development Goal 7 and align with related climate ambitions, a substantial increase in ambition is required for a global transition toward cleaner energy sources. This entails additional investments ranging from $22 trillion to $48 trillion by 2030. To achieve SDG7 targets, there's a need to significantly increase efforts toward a transition to clean energy. This involves bridging the energy access deficit, swiftly shifting to low-carbon energy systems, and securing sufficient additional funding through innovative mechanisms such as blended finance, green bonds, etc.
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