Scaling Energy Infrastructure in Emerging Markets | Lisa Sachs

Lisa Sachs, Director at Columbia’s Center on Sustainable Investment, highlights financial barriers preventing emerging markets from scaling energy infrastructure. She notes that despite ample global capital, emerging markets receive minimal affordable financing due to inflated risk perceptions and biased credit ratings based heavily on historical GDP. Renewable projects face significantly higher capital costs than in developed nations. Sachs recommends updating credit-rating methods, mitigating currency risks, providing longer-term financing, revising IMF debt frameworks, and increasing financial transparency. Implementing these reforms can unlock critical infrastructure investments, driving sustainable economic growth, improving lives, and accelerating progress toward global climate objectives.