BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//What Works - ECPv6.17.1//NONSGML v1.0//EN
CALSCALE:GREGORIAN
METHOD:PUBLISH
X-WR-CALNAME:What Works
X-ORIGINAL-URL:https://whatworksclimate.solutions
X-WR-CALDESC:Events for What Works
REFRESH-INTERVAL;VALUE=DURATION:PT1H
X-Robots-Tag:noindex
X-PUBLISHED-TTL:PT1H
BEGIN:VTIMEZONE
TZID:Europe/Berlin
BEGIN:DAYLIGHT
TZOFFSETFROM:+0100
TZOFFSETTO:+0200
TZNAME:CEST
DTSTART:20230326T010000
END:DAYLIGHT
BEGIN:STANDARD
TZOFFSETFROM:+0200
TZOFFSETTO:+0100
TZNAME:CET
DTSTART:20231029T010000
END:STANDARD
BEGIN:DAYLIGHT
TZOFFSETFROM:+0100
TZOFFSETTO:+0200
TZNAME:CEST
DTSTART:20240331T010000
END:DAYLIGHT
BEGIN:STANDARD
TZOFFSETFROM:+0200
TZOFFSETTO:+0100
TZNAME:CET
DTSTART:20241027T010000
END:STANDARD
BEGIN:DAYLIGHT
TZOFFSETFROM:+0100
TZOFFSETTO:+0200
TZNAME:CEST
DTSTART:20250330T010000
END:DAYLIGHT
BEGIN:STANDARD
TZOFFSETFROM:+0200
TZOFFSETTO:+0100
TZNAME:CET
DTSTART:20251026T010000
END:STANDARD
END:VTIMEZONE
BEGIN:VEVENT
DTSTART;TZID=Europe/Berlin:20240611T093000
DTEND;TZID=Europe/Berlin:20240611T110000
DTSTAMP:20240529T102336Z
CREATED:20240508T132428Z
LAST-MODIFIED:20240529T102336Z
UID:10000182-1718098200-1718103600@whatworksclimate.solutions
SUMMARY:Reducing cost of capital to finance the energy transition in developing countries: a multi-model analysis
DESCRIPTION:Climate stabilisation requires mobilising significant investments in low- and zero-carbon technologies\, especially in emerging and developing economies. However\, access to stable and affordable finance varies dramatically across countries. Models used to evaluate the energy transition do not differentiate regional financing costs and therefore cannot study risk-sharing mechanisms for renewable electricity generation. Here\, we first incorporate empirically estimated cost of capital (CoC) differentiated by country and technology in an ensemble of five global climate-energy-economy models (GCAM\, IMACLIM\, IMAGE\, TIAM\, and WITCH)\, which allows us to identify results robust to structural uncertainty. Subsequently we add a time dimension through financing experience curves\, i.e. a learning-by-doing process for CoC. This realistic costs of capital imply higher financing costs for developing regions compared to others\, so we explore a scenario of reducing these costs: the CoC of electricity generation in developing countries converges to that of the global North by 2050\, i.e. a future world in which international access to energy financing is equal. We explore scenarios under two climate policy scenarios\, in which the world follows Nationally Determined Contributions or is 1.5°C compliant.\nThe effects of the modelled cost of capital convergence policy are multifaceted. The direct outcome is the significant reduction of CoC in the global South. This produces interesting dynamics in the climate-economy and in the equity domains. Within the former\, more renewable electricity is generated in developing countries\, which increases mitigation or reduces its cost\, depending on the climate policy scenario. Moreover\, these changes clearly improve the energy justice of the green transition\, by decreasing inequality along dimensions like energy expenditure and access to modern electricity generation.\nTherefore\, we find significant climate and equity benefits of alleviating financial constraints. The proposed methods can help to model financial constraints more realistically and opens up new avenues for shaping international climate policies.
URL:https://whatworksclimate.solutions/presentation/reducing-cost-of-capital-to-finance-the-energy-transition-in-developing-countries-a-multi-model-analysis/
LOCATION:H 0110
END:VEVENT
END:VCALENDAR