Deployment at this scale needs to be backed by reach 380 GW by 2030, which is still little more than signi昀椀cant capital. The IEA notes that $0.9 trillion 28 half of 2030 needs” in that scenario. needs to be invested by 2030 to modernize electricity networks and build public electric vehicle However, it is often dif昀椀cult for investors to 昀椀nd charging stations, hydrogen refuelling stations, direct opportunities that match their pro昀椀le in terms of air capture and CO pipelines, storage facilities, scale and maturity. The risk appetite of 昀椀nancial 2 and import and export terminals. Further, $1.7 institutions is not always tailored to support trillion needs to be invested annually in low-carbon advanced solutions. This is a challenge in emerging 26 Most of this technologies in end-use sectors. markets and developing economies, causing investment will need to come from the private sector, them to receive a small fraction of investments. supported by public policies that create incentives In addition, sovereign and currency risks, the lack and set appropriate regulatory frameworks. of standards and regulations, and slow permitting processes remain signi昀椀cant barriers to clean A growing number of investors from both energy investments in these economies. specialized and larger infrastructure funds are actively seeking opportunities in the sector. Achieving the needed pace and scale of growth Moreover, governments provide strong support and investments requires innovators, large energy through policies aiming to multiply clean energy producers and users, and investors to form investments. Innovative capital market instruments, partnerships and play their part. To aid in this such as green bonds, open additional avenues process, the World Economic Forum is producing to increase funding. The green bonds market the “Handbook for Exponential Deployment experienced spectacular growth from $36 billion of Advanced Energy”, which will include a set 27 worth of issuances to $270 billion in 2020. of strategic recommendations for these key Subsequently, an increasing number of projects stakeholders to expand and accelerate the are being announced and deployed. The IEA has deployment of advanced energy solutions. This observed that, “announced [electric vehicle] battery initiative, led by the Forum’s Advanced Energy production capacity for 2030 is only 15% lower Solutions community, engages leaders in frontier, than the level of battery demand underpinning the fast-growing segments of the energy system and IEA’s Net Zero Emissions Scenario” and “cumulative seeks to help eradicate the green premium and output of electrolyser manufacturing capacity could maximize co-bene昀椀ts. Fostering Effective Energy Transition: 2023 Edition 32