CLEAN ENERGY FUNDING TO DEVELOPING NATIONS DIPS TO $3.7BN

Funding for clean energy projects in developing nations fell to $3.7 billion in the first half of 2026, according to a new report, raising concerns about the pace of global climate action and energy transition in emerging markets.

The decline, attributed to tighter global financial conditions, higher interest rates, and shifting priorities among international donors, has slowed the deployment of renewable energy infrastructure in many low-income countries. Analysts warn that the reduction could hinder efforts to meet Paris Agreement targets and exacerbate energy poverty.

“Developing nations are bearing the brunt of climate change, yet funding for clean energy solutions is decreasing at a critical time,” the report noted. Experts called for innovative financing mechanisms, including blended finance and green bonds, to bridge the gap.

The findings have prompted renewed calls for wealthier nations and multilateral institutions to increase support and honour climate finance commitments.

Stakeholders emphasised the need for policy reforms in recipient countries to make projects more attractive to private investors.