Good afternoon. The event, co-hosted by the COP29 Presidency of Azerbaijan, the COP28 Presidency of the UAE, and the European Commission, focused on scaling up investment for renewable energy and enhancing energy efficiency.
Axel van Trotsenburg highlighted the importance of transitioning to clean energy to meet increasing demand, create jobs, and stimulate economic growth. He noted that developing countries face significant challenges in this transition, including high capital costs and reliance on expensive fossil fuels.
"Developing countries will need around $2.4 trillion per year by 2030," said van Trotsenburg. While $500 billion is already spent annually on fossil fuel power, there is an urgent need to redirect this funding towards clean energy sources.
Van Trotsenburg emphasized that multilateral development banks like the World Bank Group play a role in financing renewables. Over the past eight years, they have doubled their annual investments to over $16 billion. However, he acknowledged that these efforts are insufficient and stressed the importance of leveraging private sector capital alongside concessional resources.
The World Bank aims to reduce financing risks in renewable sectors by supporting governments in creating investor-friendly environments and providing policy guidance. They also focus on strengthening institutional capacity within electricity utilities to ensure efficiency and financial stability.
Van Trotsenburg mentioned recent initiatives such as a 10-year energy efficiency program in Europe and Central Asia with savings equivalent to Switzerland’s annual consumption. In Africa, plans are underway to double annual energy financing from $3 billion to $6 billion until 2030 through "Mission 300," aiming to provide electricity access using off-grid solar solutions.
Aligned with COP29's goals, key initiatives include ESMAP’s Global Energy Storage Program and hydrogen partnerships aimed at advancing clean hydrogen projects. Additionally, efforts are being made to develop carbon markets for government funding.
In closing remarks, van Trotsenburg expressed optimism about overcoming financial challenges through new partnerships: "Together we can overcome the financing challenge and aim for a world free from poverty on a livable planet."