Investing in clean energy can be difficult in these economies for a range of reasons, but more than anything there’s a finance challenge. In many places, renewable energy is cheaper over its lifetime than fossil fuels, but it requires more capital up front. Because emerging economies are much riskier places to invest, renewable energy projects cost a lot more to finance than they do elsewhere. And with interest rates high right now, the challenge is particularly tricky.
And, if the conversations here this week are any indication, the economists seem to be working on this problem in earnest. The World Bank is currently undergoing a year-long review of its processes with an eye towards finalizing reforms in the fall, and the IMF is working to incorporate climate change into their operations.
Via direct (14.8BN since 2015) & indirect (worryingly unknown) investments in fossil fuels WorldBank is funding the climate crisis. Until it redresses its sticky relationship w/ fossils, any statements from the Bank on climate ring dishonest:
Climate change is as meaningful as saying water is wet, drips keep repeating that.
Climate finance? They just keep making up more ridiculous terms to steal your money.
What could go wrong?