Accelerating green finance in the Middle East requires precise project targeting and integrated energy and water legislations, Zest Associates Managing Director said at a panel during the Arab Energy & Water Conference in Kuwait City.
Key takeaways from his presentation:
1 ) Policy must promote private sector financing which must ultimately shape large scale investment in clean energy.
To meet global net-zero goals, $22.5 trillion in investment is necessary by 2050.
Oil and gas demand will decrease while the alternative energy market grows.
Policy's role is to accelerate this demand transition through market mechanisms, such as carbon taxes, while stimulating supply by creating favorable conditions for low-carbon projects.
Green investment banks are public entities that can facilitate private investment into domestic low-carbon infrastructure to overcome deployment gaps.
2 ) Middle Eastern regional dynamics showcase a need for further collaboration.
Arab countries are recognizing the steps needed to drive investment and accelerate green finance.
A review of eight countries by Zest Associates, sponsored by HSBC and published by the Mohamed Bin Rashid School of Government, shed light on these priorities.
Differing regional priorities can be bridged through collaborative pilot projects and technology competitions, like the MIT Clean Energy Prize.
Conferences like the Arab Energy & Water Conference are crucial to bring thoughtful leaders together to share best practices and solutions to address shared climate challenges.