The IRENA-G20 Report on Just and Inclusive Energy Transition in Emerging Markets and Developing Economies (EMDEs) explores the challenges and opportunities for achieving a fair energy transition in developing countries. The report emphasizes that EMDEs account for 85% of the world's population and are responsible for two-thirds of global energy-related CO2 emissions, making them a critical player in global climate action. However, investment in renewable energy in these regions remains insufficient and highly uneven, with only 10% of global energy transition investments in 2023 going to EMDEs (excluding China, India, and Brazil). The report highlights that high investment risks, limited access to affordable financing, and infrastructure challenges hinder clean energy deployment. It argues that scaling up investments, de-risking energy projects, and creating enabling policy environments are essential for advancing renewable energy and reducing dependence on fossil fuels.
The report also underscores the social dimensions of a just transition, stressing that energy policies must be inclusive and equitable to ensure that vulnerable populations benefit from the transition. Sustainable biofuels and hydrogen are identified as key energy solutions for decarbonizing hard-to-abate sectors like aviation, shipping, steel, and cement. The report advocates for strong international cooperation, public-private partnerships, and G20-led financial support to mobilize large-scale investments in clean energy. Additionally, it calls for enhanced energy planning, better governance, and targeted financial mechanisms, such as green bonds, concessional loans, and blended finance. Ultimately, the report positions the energy transition not just as an environmental necessity but as a socio-economic opportunity, capable of creating jobs, reducing poverty, and improving energy security in EMDEs. However, achieving this requires urgent policy action and significant financial commitments from both national governments and the international community.