Annual clean energy investments in emerging and developing economies need to more than triple from $770 billion (£603bn) in 2022 to as much as $2.8 trillion (£2.1tn) by the early 2030s.

That’s according to a new report released by the International Energy Agency (IEA) and the International Finance Corporation (IFC), which suggests this substantial increase is crucial in meeting the rising energy demand and aligning with the climate targets outlined in the Paris Agreement.

The report, titled “Scaling Up Private Finance for Clean Energy in Emerging and Developing Economies,” emphasises that relying solely on public investments would be insufficient to achieve universal energy access and effectively combat climate change.

To address this challenge, the report suggests blending public and private sector funding to mitigate project risks.

Approximately two-thirds of the finance required for clean energy projects in emerging and developing economies (excluding China) will need to come from the private sector.

Currently, annual private financing for clean energy in these regions amounts to $135 billion (£105bn), which will need to increase to around $1.1 trillion (£860bn) within the next decade.

IEA Executive Director Fatih Birol said: “Today’s energy world is moving fast, but there is a major risk of many countries around the world being left behind. Investment is the key to ensuring they can benefit from the new global energy economy that is emerging rapidly.”