Powering the Future: 100+ Policy Solutions for Clean Energy Investment in Emerging Markets

The renewable energy landscape is experiencing a profound transformation. While the need to accelerate clean energy adoption is undeniable, the journey toward a resilient and sustainable energy system is riddled with obstacles. From steep capital costs and unpredictable regulatory environments to volatile market conditions, each step demands careful planning and strategic execution.

For countries in the Global South—especially Small Island Developing States (SIDS) like Jamaica—these challenges are even more pronounced. High energy costs severely hamper economic development and global competitiveness. Moreover, as the 'canary in the coalmine' for climate change, SIDS must treat the clean energy transition as both an economic necessity and an ecological imperative.

Introducing the Playbook of Solutions for Clean Energy Transition

Recognizing these hurdles, the Network to Mobilize Investment for Clean Energy in the Global South has developed a Playbook of Solutions, a powerful tool designed to accelerate clean energy finance. This interactive online resource showcases more than 100 policy measures, de-risking tools, and financial mechanisms that have successfully unlocked capital for clean energy projects in emerging markets and developing economies (EMDEs).

The Playbook is designed to be more than just a reference guide—it is a catalyst for knowledge exchange and public-private cooperation. It highlights best practices in policy, finance, and risk mitigation, offering a comprehensive roadmap for governments, financiers, and energy stakeholders to navigate the energy transition effectively.

The Energy Transition Imperative in the Global South

With 200 countries committing at COP28 to triple renewable installed capacity by 2030, the trajectory is clear. However, achieving this ambitious target requires balancing electricity demand, generation capacity, and grid infrastructure while fostering a sustainable investment ecosystem. This balance is particularly crucial in the Global South, where suboptimal policies and financial constraints have historically hindered progress.

To address these issues, the Playbook provides:

• Best practices for policies that create a favorable environment for clean energy finance.
• De-risking tools and financial mechanisms that successfully unlock capital for renewable projects.
• Integrated country approaches through detailed analyses of successful energy transition models.

The Playbook’s development was informed by extensive research and insights from the Network to Mobilize Clean Energy Investment in EMDEs, a coalition of over 45 CEOs and ministers. The goal is to inspire stakeholders across government, finance, and industry while influencing international energy transition discussions, including those at the G20 Energy Transition Working Group, the Clean Energy Ministerial, and COP conferences.

Five Key Policy Pillars for Clean Energy Investment

The Playbook categorizes policy solutions into five key policy types, each playing a vital role in shaping a conducive environment for clean energy finance:

1. Socioeconomic Policy – Ensuring societal readiness for the clean energy transition through education and awareness programs. Workforce development and reskilling initiatives prepare labor markets for the shift, ensuring that citizens and businesses are active participants in the transition.
2. Financial Market Policies – Strengthening governance, expanding capital markets, and addressing macroeconomic fundamentals to enhance credit ratings, reduce capital costs, and increase the availability of domestic financial resources.
3. Investment Policy – Promoting equal treatment of foreign and domestic investors, ensuring contract enforcement, and fostering stable access to land. These measures help mitigate political, regulatory, and financial risks common in EMDEs.
4. Climate Policy – Establishing credible long-term climate commitments and goals to build investor confidence. Carbon pricing mechanisms also improve financing conditions, making clean energy projects more attractive and cost-effective.
5. Energy Policy – Enhancing power markets, incentivizing infrastructure development, and streamlining licensing for renewable energy projects. These levers not only accelerate the energy transition but also promote sustainable economic growth, reduce greenhouse gas emissions, and strengthen energy security.

A Game-Changer for SIDS and the Global South

For Small Island Developing States (SIDS) like Jamaica, the Playbook’s insights offer welcome news. High energy costs remain a significant barrier to economic growth and industrial competitiveness. With limited access to affordable financing and the looming threats of climate change, a well-structured clean energy transition is imperative.

SIDS stand at the forefront of climate vulnerability, making the shift to clean energy not just an economic opportunity but a survival strategy. By leveraging the Playbook’s strategies, SIDS can:

• Reduce dependence on expensive fossil fuel imports.
• Enhance energy security and resilience.
• Attract investment in renewable energy projects.
• Build a more sustainable and competitive economic future.

Looking Ahead: From Policy to Action

The Playbook of Solutions provides a blueprint for action—but the real challenge lies in implementation. Governments, businesses, and financial institutions must collaborate to transform these policy recommendations into concrete projects that deliver tangible results.

For stakeholders in the Global South, the Playbook is more than just a resource; it is a call to action. By aligning policies, leveraging de-risking tools, and mobilizing capital, we can create a future where clean energy is accessible, affordable, and sustainable for all.

The time to act is now. The Global South has an unprecedented opportunity to lead the clean energy revolution—and the Playbook of Solutions is the roadmap to making it happen.