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World Bank Report Highlights Need for Financing Energy Transition in Developing Countries

-Developing countries face the challenge of transitioning to greener energy sources, requiring significant investment in power sector infrastructure and scaling up renewable energy while phasing down coal-fired power plants.

-The World Bank estimates that about $1 trillion in global coal-fired power generation, primarily located in low- and middle-income countries, is at risk of being stranded.

-The scaling-up to the Phase-Down approach, endorsed by the World Bank, is crucial for facilitating this transition and requires higher capital flows for low-carbon power production methods.

-Ten multilateral banks are collaborating to ease funding for sustainable development projects, aiming to generate additional lending headroom of USD 300-400 billion over the next decade.

-The Asian Development Bank (ADB) has committed $23.6 billion in 2023, including $9.8 billion for climate action, to support sustainable development in Asia and the Pacific.

-Public climate finance, including bilateral and multilateral aid, almost doubled from USD 38 billion to USD 73.1 billion over the period of 2013-2021, according to OECD.

-Developing countries face various hindrances in the energy transition, including high upfront capital costs, inefficient energy subsidies, high cost of capital, and weak energy sector fundamentals.

-India has called for developed countries to provide at least $1 trillion per year in climate finance to developing countries from 2025 to support actions related to Sustainable Development Goals (SDGs).

Read the full article on Saur Energy International

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