{"id":103274,"date":"2025-11-14T11:04:42","date_gmt":"2025-11-14T11:04:42","guid":{"rendered":"https:\/\/www.climatepolicyinitiative.org\/?post_type=cpi_pr&p=103274"},"modified":"2025-11-14T16:27:17","modified_gmt":"2025-11-14T16:27:17","slug":"clean-energy-equity-investment-in-emdes-must-increase-fourfold-by-2035-for-net-zero","status":"publish","type":"cpi_pr","link":"https:\/\/www.climatepolicyinitiative.org\/id\/press-release\/clean-energy-equity-investment-in-emdes-must-increase-fourfold-by-2035-for-net-zero\/","title":{"rendered":"Clean energy equity investment in EMDEs must increase fourfold by 2035 for net zero\u00a0"},"content":{"rendered":"\n

Bel\u00e9m, Brazil, November 14, 2025 \u2014<\/strong> Today on Finance Day at COP30<\/strong> in Bel\u00e9m, Brazil<\/strong>, Climate Policy Initiative<\/a> (CPI) and the Glasgow Financial Alliance for Net Zero<\/a> <\/a>(GFANZ), with support from Allied Climate Partners<\/a> and Three Cairns Group<\/a>, and analytical support from Wood Mackenzie<\/a>, released a new report, The Clean Energy Equity Investment Gap: Mobilizing private finance in emerging markets<\/em><\/a>, revealing a growing shortfall in projected equity investment relative to the levels needed for EMDEs, excluding China (\u201cEMDEs\u201d) to align with global clean energy transition goals. <\/p>\n\n\n\n

The report finds that EMDEs will need approximately USD 1.3 trillion<\/strong> in annual clean energy investment by 2035, including USD 375 billion<\/strong> in equity. In 2024, equity accounted for USD 100 billion of the USD<\/strong> 330 billion<\/strong> invested in EMDEs. Closing the USD 215 billion \u201cEquity Gap\u201d <\/strong>will require scaling equity roughly fourfold by 2035. A well-targeted USD 12\u201325 billion<\/strong> per year in catalytic equity would meaningfully reduce the gap by absorbing risk and improving returns for other public and private investors.\u00a0<\/p>\n\n\n\n

\u201cA clear understanding of capital requirements \u2013 by industry, sector, risk, and financing structure \u2013 reveals where the real bottlenecks in EMDE finance lie,\u201d said Mark Gallogly<\/a>, Co-Founder and Managing Principal of Three Cairns Group and Chairman of Allied Climate Partners<\/strong>. \u201cWith that clarity, catalytic equity can be deployed precisely where it attracts private and public investors, creating the greatest possible multiplier for every scarce dollar deployed.\u201d <\/p>\n\n\n\n

The research provides the first granular assessment of equity flows across EMDEs\u2019 clean energy infrastructure and identifies where shortfalls could grow to be most acute. Of the 90 sectors and regions modeled, the top ten comprise nearly half the gap in 2035, pointing investors to high-growth, high-volume opportunities. <\/p>\n\n\n\n

\u201cThe data is clear: closing the equity gap is essential to meeting global energy transition goals,\u201d said Barbara Buchner<\/a>, Global Managing Director of Climate Policy Initiative<\/strong>. \u201cThis analysis provides the most detailed look yet at where capital is\u2014and isn\u2019t\u2014flowing, offering a roadmap for investors and policymakers to seize these opportunities with urgency.\u201d <\/p>\n\n\n\n

These findings underscore the urgent need to scale the use of catalytic equity due to its powerful demonstrated mobilization potential. In recent deals, one dollar of catalytic equity has mobilized more than 30 dollars of external investment into clean energy infrastructure projects. <\/p>\n\n\n\n

\u201cCatalytic equity is a force multiplier for the mobilization of additional capital. By bearing initial risks and proving new business models, catalytic equity can help ensure that capital flows to where it is most needed in order to accelerate the energy transition and other goals,\u201d said Ahmed Saeed, CEO of Allied Climate Partners<\/strong>. <\/p>\n\n\n\n

\u201cOur work on emerging market capital mobilization underscores how catalytic capital, including equity, is an essential but underused tool for unlocking private investment in the transition,\u201d\u00a0said Mary Schapiro<\/a>, Vice Chair of the Glasgow Financial Alliance for Net Zero<\/strong>. \u201cThis new GFANZ research, developed with partners and building off The World Bank\u2019s Private Sector Investment Lab, demonstrates how relatively small amounts of catalytic equity from development finance institutions, philanthropies, and others can unlock significantly greater flows of private finance to build the clean energy infrastructure emerging markets urgently need.\u201d<\/p>\n\n\n\n

The report outlines actionable pathways to close the gap, including: <\/p>\n\n\n