Even though global transition-related investments reached a record of USD 2 trillion in 2023, the world faces a critical challenge: current investment patterns are disproportionately concentrated in advanced economies and a few large emerging markets like China, India, and Brazil. Meanwhile, much of the developing world receives just 10% of energy transitions investments. This imbalance jeopardizes not only the pace of the energy transition but also the equitable distribution of its benefits.
This imbalance underscores the importance of strong national energy planning frameworks – supported by international collaborations – which are universally critical but hold particular promise in addressing underinvestment challenges in the Global South. By improving enabling conditions for investment in regions that are currently underfunded, such frameworks have the potential to drive significant progress in accelerating the energy transition.
To achieve this, a well-established institutional framework, coupled with a well-coordinated and transparent planning process, is essential. Such frameworks enable countries to create robust investment strategies, address potential risks, build investors’ confidence, and attract private capital. Moreover, good alignment between climate and energy planning processes enhances the credibility of planning outcomes, which is key to unlocking climate finance. Brazil, which held the G20 presidency in 2024, serves as a compelling example of the transformative potential of long-term energy planning. By implementing a comprehensive de-risking process – which entails effective governance of the planning process, financial instruments, and project execution – Brazil has significantly boosted investments in its renewable energy sector.
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https://www.irena.org/News/expertinsights/2025/Jan/The-Success-of-Energy-Transition-Starts-With-Strong-National-Energy-Planning