2024 Brings Financing Crunch for Global Climate Action

Finance has long been critical for climate action through mechanisms like tax incentives and global climate funds. It will take center stage in 2024 as high interest rates and demands from emerging economies collide.

Financing clean energy is uniquely challenging due to high upfront infrastructure costs. This problem will intensify with higher interest rates.

Emerging economies are under pressure to curb emissions but can't afford the financing to enable the transition. Expect contentious finance talks at the 2024 UN climate summit.

Blended finance, combining private and public/philanthropic capital, will be key. Firms that get the structures right will lead the market.

Governments and private institutions need to create more blended finance offerings to match demand and catalyze decarbonization investments.