The time to scale up renewables is now
The time to scale up
renewables is now
The COP 28 commitment to triple renewable energy worldwide by 2030 is a critical step forward in addressing the climate crisis. However, achieving this accelerated deployment demands innovative models that increase private investment and build the capacities of local markets. Borislav Kostadinov, Fund Director, explains how Finance in Motion delivers these solutions where they’re needed most.
The world’s most pressing challenges
Renewable energy is a proven technology and core solution to a number of the world’s most pressing challenges. A decarbonized future is an electrified future, meaning vastly more solar panels and wind turbines are needed to achieve ambitious visions such as the Paris Agreement or the European Union’s commitment to climate neutrality by 2050.
Attending COP28, Borislav Kostadinov, Fund Director at Finance in Motion, emphasizes the urgency to scale proven solutions: “We need to massively and immediately increase investments in renewables if we are to keep the Paris Agreement within reach.”
The good news is that in much of the world renewables are now the most cost-effective investment for electricity generation. Yet too often international investors remain hesitant to commit capital to emerging markets due to perceptions of higher risks. For Borislav, who built his 25-year career upon pioneering green finance and building green banks in emerging markets, these perceptions are misplaced: “At Finance in Motion, we advise proven blended finance vehicles that bring blue chip, private investors into renewables projects across emerging markets. They haven’t lost a penny and we’ve financed over one gigawatt worth of projects”.
Long track record in emerging markets
Finance in Motion and its public-private partnership model have demonstrated how to bridge these financing gaps in emerging markets for 15-years. As pioneers in blended finance, the funds we advise leverage public funding to mobilize private capital for impact-focused investments targeting environmental and social outcomes. To date, we have financed over EUR 7 billion in 40+ markets.
Renewable energy is a priority sector for us across many of our regions but nowhere is our footprint larger than in the countries bordering the European Union. Here, we find huge needs to replace fossil-fuel-based infrastructure with cleaner sources, wean economies off coal, and – crystalized following Russia’s invasion of Ukraine – strengthen energy security.
We believe our model showcases how public and private investors can come togher and not only finance single projects but change how markets finance the sector. We have plenty of successful examples, particulary in Southeast Europe.