Title page
Contents
Acknowledgements 4
Abbreviations 5
Overview of the Aid for Trade initiative 6
Executive summary 8
01. Introduction 12
1.1. Clean energy adoption is a development opportunity 13
1.2. Clean energy technologies are increasingly cost‑competitive 16
1.3. Developing economies and LDCs are key stakeholders in a clean energy transition 18
1.4. The clean energy transition is a trade integration opportunity 20
02. Development financing for a clean energy transition 22
2.1. Overview 23
2.2. Snapshot of climate-related development finance flows 23
2.3. Aid for Trade, climate finance and the energy transition 28
2.4. Blended finance to drive clean energy deployment and trade 33
03. Opportunities for trade integration in clean energy value chains 36
3.1. Supply of critical minerals and metals 38
3.2. Machinery and equipment manufacturing 43
3.3. Services value chains 46
3.4. Development opportunities through carbon credits and carbon capture utilization and storage 50
04. Opportunities for trade integration in specific clean energy technology value chains 56
4.1. Enabling clean energy access through electrification 57
4.2. Wind energy value chains 59
4.3. Solar photovoltaic value chains 63
4.4. Hydropower value chains 68
4.5. Hydrogen value chains 69
4.6. Nuclear power value chains 73
05. Conclusion 78
Bibliography 80
FIGURE 1.1. IEA total energy supply projections to 2050 13
FIGURE 1.2. Investments into clean energy and fossil fuels 2015-23 16
FIGURE 2.1. Trends in climate-related overseas development assistance (2010-21) 24
FIGURE 2.2. Bilateral ODA commitments by climate objective 25
FIGURE 2.3. Evolution of Aid for Trade commitments, 2011-21 29
FIGURE 2.4. Number of climate-tagged Aid for Trade projects (2011-21) 29
FIGURE 2.5. Sectoral climate-related Aid for Trade commitments (2011-21) 30
FIGURE 2.6. Share of Aid for Trade for renewable and non-renewable power generation 31
FIGURE 2.7. Regional disbursements of climate-related energy projects (2011-21) 32
FIGURE 2.8. Top donors of climate-related Aid for Trade commitments for energy (2011-21) 32
FIGURE 3.1. Global electricity generation by source (2010-50) 38
FIGURE 3.2. Revenue from select minerals and coal (2020-40) 39
FIGURE 3.3. Solar PV manufacturing capacity by economy and region, 2021 44
FIGURE 3.4. Carbon capture, utilization and storage 53
FIGURE 4.1. Wind technology deployment across income groups 60
FIGURE 4.2. Installed solar PV capacity, split by development category 64
FIGURE 4.3. Price and trade in solar PV panels 64
Boxes
BOX 1.1. SDG 7 - Access to affordable and clean energy 14
BOX 1.2. Clean energy references in the 2023 COP28 decision text 15
BOX 1.3. The Fossil Fuel Subsidy Reform Initiative (FFSR) 17
BOX 1.4. The Noor Ouarzazate Solar Complex Project 18
BOX 1.5. Examples of clean energy targets in developing-economy NDCs 20
BOX 2.1. Commitments by multilateral development banks to climate transition and clean energy financing 26
BOX 2.2. Just Energy Transition Partnerships 28
BOX 2.3. Mobilizing institutional capital through listed product structures 34
BOX 2.4. The Seed Capital Assistance Facility (SCAF) 34
BOX 3.1. Copper and a clean energy transition 40
BOX 3.2. Minerals in battery production 41
BOX 3.3. Aid for Trade in action: the World Bank's Climate-Smart Mining Facility 42
BOX 3.4. Renewable energy manufacturing in Africa 45
BOX 3.5. Grid scale battery production in Indonesia 46
BOX 3.6. The Systematic Observations Financing Facility (SOFF) 48
BOX 3.7. Aid for Trade in Action: USAID capacity-building assistance in Guajira, Colombia 49
BOX 3.8. Powerstove - digitalized clean cooking solutions for development 51
BOX 3.9. Retrofitting thermal infrastructure with CCUS 53
BOX 4.1. One Sun One World One Grid and the Green Grids Initiative 58
BOX 4.2. Supporting sustainable copper extraction in Zambia 61
BOX 4.3. Lake Turkana Wind Power Project (LTWP) 62
BOX 4.4. Aid for Trade in action: Taiba N'Diaye Windfarm 62
BOX 4.5. Aid for Trade in action: solar mills in Vanuatu 65
BOX 4.6. International Solar Alliance (ISA) and One Sun One World One Grid 65
BOX 4.7. Supporting artisanal bauxite mining in Guinea-Bissau 66
BOX 4.8. Solibrium: a solar service provider 67
BOX 4.9. ADB assistance to expand Bhutan's hydropower export capacity 68
BOX 4.10. Colombia's hydrogen road map 70
BOX 4.11. Green hydrogen production in Namibia 71
BOX 4.12. Australia and India set up a Green Hydrogen Task Force 72
BOX 4.13. Developing nuclear power generation in Africa with Russian assistance 75
BOX 4.14. Developing a low-enriched uranium fuel bank in Kazakhstan 75