Financing the Energy Transition in Emerg

Prerequisites: Instructor-Managed Waitlist & Course Application. This class will look at the obstacles and opportunities for financing the energy transition in emerging markets. We will start by studying what the energy transition is, how it relates to climate goals, and what it entails to understand what needs to be financed. The course will then look at the different estimates of how much will the energy transition costs and what this means for emerging markets. The class will survey the current financial energy landscape to assess what is working, what is missing, and the potential governance structures that are needed to mobilize such financing. We will survey the existing sources of financing from the private sector, development agencies, and international financial institutions to understand the specific challenges and opportunities for each source of financing. The course will also look at the financing toolkit available, from blended finance vehicles, de-risking instruments, and the new ones that are being deployed, like ESG investing and thematic bonds. The course will also introduce students to carbon markets and the role they can play in financing the energy transition in emerging markets. Lastly, the course will also survey the financing of transition assets to understand how and when capital should be deployed and what this means to retire or retrofit existing fossil fuel assets.