What We Get Wrong About Climate Financing
From The Flip by The Flip Media
February 6, 2025 · 10 min · Season 8
About this episode
The episode discusses the challenges and costs associated with climate financing in Africa, highlighting the significant funding gap and the high capital costs for renewable energy projects.
Reports suggest that climate change is set to cost the global economy $38 billion per year by 2049. Emerging markets need close to $2.4 trillion per year by 2030 to meet the climate goals. That's 4 times what is currently invested. But high capital costs are stalling clean energy investment across Africa. If you want to build a renewable energy project in Sub-Saharan Africa, the weighted average cost of capital would be up to 4x as much as the same project in Western Europe or the US, due to the real and perceived risks of investing on the continent. If the world invests in renewables and green technology in Africa at Africa's cost of capital, it will underinvest in green energy assets. 00:00 - The climate funding gap 01:01 - It's 4x more expensive to build an energy project in Africa 02:10 - The cheapest energy is where there is high energy density 03:26 - Startup financing needs 06:23 - Addressing funding challenges at the multinational level Check out more episodes of The Greenprint here . This episode of The Greenprint was produced in partnership with Catalyst Fund, Delta40, and Africa Climate Ventures. Delta40 is a venture studio and venture capital fund supporting diverse…
Topics covered
- climate financing
- clean energy investment
- renewable energy projects
- Africa
- startup financing
- funding challenges
Keywords
- climate change
- investment
- energy projects
- Africa
- capital costs
- renewables
- green technology
Sponsors
Catalyst Fund, Delta40, Africa Climate Ventures
Mentioned in this episode
Organizations: The Flip Media
Places: Sub-Saharan Africa, Western Europe, US
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