Offshore wind will be critical to achieve the world’s decarbonization and sustainable development goals. Although the cost of offshore wind has dropped dramatically over the past decade, there will be an initial cost premium when developing offshore wind in emerging markets due to a variety of risks and constraints in establishing a new market. Concessional climate finance could help countries overcome this initial cost barrier to help reduce costs for future projects and lay the foundation for the development of successful offshore wind markets.
This report from World Bank’s Energy Sector Management Assistance Program (ESMAP) and International Finance Corporation (IFC), finds that concessional climate financing is essential to unlock offshore wind in emerging markets and estimates that US$15 billion in concessional climate financing, consisting of both grants and loans, could catalyze offshore wind deployment across ten emerging market countries.
Full report https://www.esmap.org/concessional-finance-for-offshore-wind?deliveryName=DM195051
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