Anohu revisits financial pathways for decarbonisation in global growth markets
Translated from English, summarized and contextualized by DistantNews.
At a glance
Analysis
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Context piece
- Chinelo Anohu, founder of Mutandis Africa, addressed the challenge of financing the global energy transition at London Climate Action Week.
- She argued that the world has ample capital but lacks sufficient bankable instruments and credible project structures for decarbonization, especially in growth and frontier economies.
- Anohu emphasized that capital flows based on structure, risk intelligibility, project preparation, and stable regulation, not just stated need.
The global energy transition requires innovative financial strategies, particularly for growth markets and frontier economies, according to Chinelo Anohu, founder and CEO of Mutandis Africa. Speaking at London Climate Action Week, Anohu, a former head of the African Development Bank’s Africa Investment Forum, highlighted the critical need to move beyond discussions of climate action pledges to concrete financial mechanisms.
The question is no longer whether the world must transition away from fossil fuels. The harder question is whether the world can finance the transition in a manner that is orderly, equitable, investable, and politically durable.
Anohu framed the core challenge not as a lack of funds, but as a deficit in the structures that facilitate capital flow. "The world is awash with capital: pension funds, sovereign wealth funds, insurance pools, infrastructure funds, development finance institutions, climate funds, etc.," she stated. However, she pointed out that this capital does not automatically reach where it is most needed. Instead, it is drawn to "bankable instruments, credible project structures, and investable pathways."
The world is awash with capital: pension funds, sovereign wealth funds, insurance pools, infrastructure funds, development finance institutions, climate funds, etc.
"Capital does not move on need alone," Anohu explained. "It moves on structure. It moves where risk is intelligible. It moves where projects are prepared. It moves where cash flows are credible. It moves where regulation is stable. It moves where public institutions and private capital can trust the rules of engagement." This, she contends, is the central financing hurdle for decarbonization efforts in developing economies.
It moves on structure. It moves where risk is intelligible. It moves where projects are prepared. It moves where cash flows are credible. It moves where regulation is stable. It moves where public institutions and private capital can trust the rules of engagement.
Anohu urged a shift in focus from the arithmetic of climate finance pledges, how much has been promised, disbursed, or remains outstanding, to the practicalities of project viability. The more pertinent question, she suggested, is "how many projects are truly bankable? How many grid projects are ready for institutional capital? How many renewable energy projects are prepared for investment?" Addressing these questions is essential for ensuring that the energy transition is orderly, equitable, investable, and politically durable.
The more important question is this: how many projects are truly bankable? How many grid projects are ready for institutional capital? How many renewable energy projects are prepared for investment?
DistantNews Editorial
Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.
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