The International Energy Agency’s recent finding that investment in clean energy in 2024 would be twice that of hydrocarbon projects comes with both good and bad news.
The good news is that clean energy investments are expected to exceed US$2 trillion for the first time, but unfortunately most of these investments are taking place in the North. It is estimated that only 15% of this record investment will go to the Global 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 affordable clean energy.
With the Global South accounting for 56% of the world’s population but only 18% of its electricity generation capacity, the question remains: how can emerging and developing economies obtain the clean energy financing needed not only to keep pace with the global energy transition, but also to preserve their energy security? Achieving this balance is essential to ensure the economic resilience of these countries and to build a more equitable global energy landscape.
This is an issue that those in the energy sector are familiar with, as it is a major theme in ongoing discussions between the energy industry, governments, intergovernmental organizations and policy makers. As CEO of a global coalition dedicated to collaboration, I believe there are key actions that can drive more equitable and affordable access to clean energy around the world, although specific solutions may vary depending on the 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 North and South. Knowledge sharing and collaboration across geographies, sectors and specializations can have a multiplier effect and transformational impact on clean energy financing efforts. Public-private partnerships (PPPs), in particular, can pool resources, share expertise and pilot sustainable energy projects, while expert-level knowledge sharing can improve outcomes by avoiding pitfalls and identifying easy wins.
Through knowledge sharing, those working to strengthen clean energy financing in the Global South can discover 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 face unique challenges in infrastructure, climates, landscapes and resource availability, which must be considered in planning and financing any clean energy to ensure it is sustainable. maximum viability.
In the technology space, some emerging technologies are expected to have a significant impact on clean energy security, such as artificial intelligence (AI) and digitalization. AI can help predict load and balance multi-energy microgrids that can include various clean and conventional energy sources. According to Argonne National Laboratory, integrating AI into clean energy project design can potentially reduce project completion times by 20%, which can translate into massive savings. AI can also enable efficient grid optimization and avoid waste, as well as dynamic management of energy storage and grid response. Digitalization technologies such as the Internet of Things (IoT) can enable utilities to manage demand during peak times, while data analysis can inform better operational decisions.
And of course, the most important aspect of clean energy security in the Global South is ensuring access to appropriate financing and investments in clean energy. Although increased commitments to financing clean energy projects in the Global South have helped address traditional investment gaps, particularly after COP28, challenges remain in accessing capital. For example, one of the main problems in securing financing and investment for clean energy projects in the Global South is the perception of risk and associated cost inflation. Working in partnership with established clean energy companies and solution providers and leveraging technologies that can improve efficiency and reduce costs can help improve the results of techno-economic feasibility assessments.
Having held various positions in the energy sector, I have seen first-hand how collaboration, technology and equitable access to financing are not only beneficial, but essential to boosting clean energy financing on a global scale. The potential for energy-led economic growth is immense, but it can only be unlocked through these strategic changes, like those we are already seeing take root within the Global Impact Coalition.
Take, for example, SUEZ, a global leader in circular solutions for water and waste, which joined us in the Global Impact Coalition in September 2024. This move strengthened SUEZ’s ability to collaborate across energy sectors. chemistry and energy, while strengthening the coalition’s mission. to achieve net zero emissions. Supported by major players such as Mitsubishi Chemical Group, SABIC, BASF and Covestro, the coalition has made significant progress, including developing new technologies for processing plastic waste that not only reduce the carbon footprint, but also make the more affordable process by increasing 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 capitalize on its sustainable growth potential.
The lesson here is unequivocal: collaboration, whether through knowledge exchange, technology or direct investment, is key to a successful energy transition. But this need for collaboration is particularly acute in the Global South, where clean energy security and investments 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 like ADIPEC, the leading global energy event currently taking place in Abu Dhabi, where real connections are made and transformative agreements are established and expanded. With participants from 160 countries and more than 2,220 organizations, the event fosters a collaborative environment, prioritizing diversity, equity and inclusion to ensure that voices from around the world can be heard. unite around the common mission of delivering the future energy system.
The Global Impact Coalition is proud to participate in leading events like ADIPEC, where our ambitions for a low-carbon future are fully aligned. Our goal of fully reducing greenhouse gas emissions from the chemical industry is not just a goal: it is a necessity. To achieve this, we are leveraging existing and future collaborations to enable a greater push toward energy technology and energy access. In doing so, we aim to ensure that the energy transition is not only about decarbonization, but also about ensuring energy security, affordability and sustainability on a global scale.
By harnessing cost-saving or cost-saving technologies, sharing knowledge and expertise, and entering into mutually beneficial partnerships, the collective international community can work together to ensure that the energy transition is truly affordable, equitable, and sustainable.
Charlie Tan
Charlie Tan is Managing Director of the Global Impact Coalition (GIC), a CEO-led, cross-industry acceleration platform founded by some of the world’s largest chemical companies. GIC is focused on enabling new business models and investments in proof of concepts that drive the goals of net zero emissions and circularity. Charlie works closely with the CEO Advisory Council and Executive Committee, comprised of executives from GIC member companies, and guides a team of partners and collaborators to take projects from ideation to spin-off. Previously, Charlie participated at the World Economic Forum, where he led the incubation and development of the Global Impact Coalition, a spin-off of the Low Carbon-Emitting Technologies (LCET) platform.