Leaders at ADIPEC urge joint efforts to mobilise capital for emerging economies

Energy conference ADIPEC’s inaugural finance & investment conference stressed the necessity of accessibility and availability of capital to aid energy transition to sustainable resources.

The conference acted as a platform for multilateral stakeholders such as policymakers, financiers, and energy executives to remedy finance structures for an inclusive and pragmatic energy future.

Capital mobilisation is the aim of the UAE leaders declaration on a global climate finance framework, targeted at reducing investment risk. High borrowing costs, investment risks, lack of creditworthy off-takers, and regulatory uncertainty in developing economies remain problems to be overcome.

Panelists from IRENA, MUFG, Houlihan Lokey, and Amundi agreed these issues must be resolved to get the funding the energy sector requires.

 Gurbuz Gonul, director of country engagement and partnerships at IRENA, said: “Regional discrepancies in funding energy transition projects pose significant challenges. Developing countries face tougher financing terms, undermining the affordability of technology deployment. While governments should play a part in creating conducive investment environments, we also need to see how we can provide financing in better terms to reduce this gap. We are currently largely relying on bilateral climate finance; however, philanthropy is increasingly becoming a new player in the game.”

A panel named ‘bridging the gap: energy and financial cross-sector collaboration to advance new projects’ had senior executives from Bank of America, Abu Dhabi Investment Authority, OMV, and Fertigro speaking. Discussion centred on how investors and banks can collaborate with the energy industry to provide the necessary investment to help transition progress.

Massimo Falcioni, chief competitiveness officer of Abu Dhabi Investment Authority, said: "A major criteria for deciding what projects receive support is the contribution to the local GDP, as we want to create sustainable economic development in Abu Dhabi. Compliance with the ESG environment rules and employment is also important. Whatever we do, we need to do it sustainably.”

The new one day ‘voices of tomorrow’ conference, taking place tomorrow, will allow a variety of opinions and ideas to be platformed on how best to assist in the energy transformation.

Key topics such as: in-country growth within African nations, what the global souths energy sector can expect at COP29, the importance of diversity and inclusion in unlocking the energy transition, and how NGOs, IGOs and industry can help communities prepare for a climate-resilient future.

Notable speakers include representatives from the ADNOC, the Abu Dhabi Sustainability Group, the Economic Research Institute for ASEAN and East Asia, the Oil and Gas Climate Fund, and the Global Impact Coalition.