Blended finance: key to bridging energy transition gap in developing countries

As the transition to a low-carbon economy gathers pace across emerging economies and new technologies and untapped demographic segments come to the fore, Blended Finance offers a solution that can help alleviate the technological and market risks allowing such projects to access affordable capital, a new joint report by the Institute for Energy Economics and Financial Analysis (IEEFA) and auctusESG finds. The report highlights that in developing and emerging economies, commercial financiers are mostly backing utility-scale wind and solar projects at the expense of smaller-scale projects, such as mini-grid solar, which offer economic, social and environmental benefits for all, especially in those economies that still face energy poverty.