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Emerging markets have made significant progress in renewable energy over the past decade, though persistent financing and policy challenges continue to hinder broader growth, according to BloombergNEF’s (BNEF) latest Climatescope report.

Since the Paris Agreement in 2015, clean energy investment in emerging markets (excluding mainland China) has nearly tripled—from $49 billion in 2015 to $140 billion in 2024. However, these markets have captured just 18% of global clean energy spending over the past decade, compared with 42% in developed economies and 40% in mainland China.

BNEF cites political instability, currency volatility, and high capital costs as ongoing barriers to investment. Solar power remains the dominant growth driver, accounting for nearly three-quarters of renewable investment in 2024, fueled by small-scale and distributed-generation projects.

Sofia Maia, BNEF’s Head of Country Transition Research, said the findings reveal “clear advances with enduring imbalances,” emphasizing that consistent market environments and lower financing costs are key to sustaining progress.

India topped BNEF’s ranking for clean energy investment attractiveness for the third year running, supported by stable policies and structured auction systems. Romania, Chile, and Pakistan also improved their standings due to new reforms and expanding solar capacity.

Total low-carbon power capacity in emerging markets has doubled since 2015, reaching 1.2 terawatts in 2024, yet investment disparities remain a central obstacle to global energy transition goals.

Source: about.bnef.com