How Is KR 10.4 Tracking?
Our Project Financing KR involves the single largest bucket of money for the transition to clean energy. It calls for at least $1 trillion per year for the next two decades.
From 2019 to 2023, clean energy project financing for new facilities and retrofits nearly doubled, from $393 billion to $743 billion.
Most of these funds are dedicated to solar and wind plants, with growing amounts going toward electrification of heat and transportation. While the trend is promising, all those dollars could make a greater difference if they were channeled toward even newer, critically needed technologies.
Globally, the World Bank should be an important lender for clean energy projects. President Ajay Banga is committed to reserving 45 percent of the bank’s annual financing for climate-related projects. These funds are a critical complement to private financing in emerging economies.
Beyond funding proven technologies, public and private banks need to issue more loans for new energy sources, new types of energy storage, and new carbon removal projects.