To meet climate and development goals, low- and middle-income countries need to transform their power sector infrastructure at a scale and pace that is unprecedented. The World Bank framework “Scaling Up to Phase Down” maps out steps to support developing countries, with the help of development partners, to scale up affordable, secure, and reliable clean energy and phase down coal-fired electricity generation.
Poorer countries are stuck in a vicious cycle where they pay more for electricity; cannot afford the high upfront cost of clean energy; and are locked into fossil fuel projects. In essence they are paying a triple penalty for energy transition. The poverty trap is becoming an energy trap that is becoming a climate trap.
Developing countries struggle to overcome critical barriers that are paralyzing their power sector transition: high upfront costs of clean energy, costly capital, and weak energy sector fundamentals.
These countries receive only one-fifth of global energy investment despite accounting for two-thirds of the global population. They need affordable financing, especially at the start of their energy transitions, to improve sector conditions and attract growing volumes of private capital.
“Scaling Up to Phase Down” outlines a 6-step vision to help developing countries create a virtuous cycle to accelerate the clean energy transition.
The Virtuous Cycle
The Virtuous Cycle
Explore the six steps that can propel a pipeline of renewable energy projects in lower-income countries. Every stakeholder has a role.
The World Bank report serves as a roadmap to catalyze financing for energy transition in the developing world, which will need to reach $1 trillion yearly by 2030.
Watch the World Bank Live on May 9th
Governments, development partners and private sector financiers address critical hurdles in transitioning to clean energy.
Breaking Down Barriers to Clean Energy Transition
Developing countries face a triple penalty when transitioning to clean energy: They often pay more for electricity, cannot access clean energy projects, and are locked into fossil fuel dependency.
Preview of the Report from COP27
Leading policy makers and financiers share insights on transition solutions during a Scaling Up to Phase Down preview event at COP27 in Sharm El-Sheikh, Egypt.