Adipec2024: Finance & Investment Conference Concludes with Focus on Capital for Energy Transition

The inaugural Finance & Investment Conference at Adipec 2024 concluded today, emphasizing the critical need for accessible, affordable, and available capital to accelerate the global energy transition. The conference, a key segment of the world’s largest energy event, brought together multilateral stakeholders, including top financiers, policymakers, and energy executives from both the Global North and South, to discuss sustainable finance structures crucial for a secure, equitable, and sustainable energy future.

The discussions highlighted both opportunities and challenges in mobilizing the capital necessary for energy transition projects. Collaborative initiatives, such as the UAE Leaders’ Declaration on a Global Climate Finance Framework, were discussed as important steps in reducing investment risks. However, panellists pointed out that obstacles such as high borrowing costs, investment risks, lack of creditworthy off-takers, and regulatory uncertainty in developing economies still pose significant barriers to securing financing.

Gurbuz Gonul, Director of Country Engagement and Partnerships at IRENA, noted the regional funding disparities that hinder the affordability of energy transition technologies. “Developing countries face tougher financing terms, undermining the affordability of technology deployment,” he said. He further stressed the need for governments to create conducive investment environments while recognizing the growing role of philanthropy in bridging the financing gap.

A prominent panel session titled “Bridging the Gap: Energy and Financial Cross-Sector Collaboration to Advance New Projects” featured senior executives from Bank of America, Abu Dhabi Investment Authority, OMV, and Fertigro, who discussed how investors and banks can collaborate with the energy sector to ensure the necessary investment flow for the energy transition. Massimo Falcioni, Chief Competitiveness Officer at Abu Dhabi Investment Authority, emphasized the importance of project bankability, highlighting that projects contributing to local GDP growth, ESG compliance, and job creation are key criteria for investment support.

The conference also underscored the significance of financial and energy sector collaboration to ensure that energy transition projects move forward at the pace and scale required to meet global goals.

Looking ahead, Adipec 2024 will continue with its “Voice of Tomorrow” conference tomorrow, focusing on inclusive energy transformation. Discussions will cover topics such as in-country growth opportunities within African nations, expectations from the Global South at COP29, the role of diversity and inclusion in the energy transition, and how NGOs, IGOs, and the industry can help communities prepare for a climate-resilient future.

The final day of Adipec 2024 tomorrow will mark the conclusion of four days of high-level discussions, further establishing the event’s role in shaping a future with secure, equitable, and sustainable energy for all.

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