Reducing the cost of capital to finance the energy transition in developing countries.

ABSTRACT: Climate stabilization requires the mobilization of substantial investments in low- and zero-carbon technologies, especially in emerging and developing economies. However, access to stable and affordable finance varies dramatically across countries. Models used to evaluate the energy transition do not differentiate regional financing costs and therefore cannot study risk-sharing mechanisms for renewable electricity generation. In this study, we incorporated the empirically estimated cost of capital differentiated by country and technology into an ensemble of five climate-energy-economy models. We quantified the additional financing cost of decarbonization borne by developing regions and explored policies of risk premium convergence across countries. We found that alleviating financial const

SUBMITTER: Calcaterra M 

PROVIDER: S-EPMC11496104 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature