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Financing the Energy Transition: Meeting a Rapidly Evolving Electricity Demand

Financing the Energy Transition: Meeting a Rapidly Evolving Electricity Demand

The WEF 2025 Financing the Energy Transition report identifies a $2 trillion annual investment gap to meet net-zero goals, with urgent needs in emerging and developing economies. While capital is available, deployment is hindered by high risks, policy uncertainty, and insufficient bankable projects. The report calls for blended finance, risk-sharing mechanisms, and scalable public-private partnerships to crowd in private capital. Clear taxonomies, carbon pricing, and transition policies are critical to align incentives. Coordinated global action, innovative financing models, and equitable investment flows are essential to accelerate the energy transition and secure sustainable growth.

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