IRENA and the Indian G20 presidency jointly released the "Low-Cost Energy Transition Finance” report, which delves into the crucial role of affordable financing in driving the global energy transition and provides a comprehensive toolkit to accelerate the initiatives.
Francesco La Camera, CEO, IRENA, underscored the critical and pressing requirement for affordable financing to accelerate the global deployment of renewable energy as part of the ongoing energy transition. According to the institution, the world needs to invest US$5 trillion per year to achieve energy transition goals.
“We are proud to contribute to the work of the G20 and provide valuable information that supports the Indian Presidency in facilitating access to affordable finance in developing and advanced economies,” La Camera commented.
These frameworks encompass a wide range of factors such as enabling technologies, business models, market design, system operation, technology maturity, innovation, systems integration, increased manufacturing capacity and reduced labor costs. By incorporating these elements, countries can reduce transaction costs associated with technology transfers, attract foreign direct investment and create an environment conducive to accelerating the adoption of renewable energy.
Mexico, as a member of the G20, can use the toolbox as it faces the challenge of financing its energy transition while ensuring it is affordable and accessible. Although the country has made notable progress in renewable energy, especially in the solar and wind sectors, it can still leverage the report's insights to create an environment that is conducive to the expansion of renewable energy sources.
"To accelerate Mexico's energy transition, it is crucial to strengthen the regulatory framework, attract investment in renewable energies and energy efficiency and foster competition in the energy market. Although the country has made significant progress in increasing its installed renewable energy capacity, it has mainly been through hydropower, followed by wind and solar and there remains a notable reliance on fossil fuels, particularly in the transportation and power generation sectors,” says Yolanda Villegas, Director, VEMO.