Indifferent to Decarbonization : Developing Feasible Financial Strategies to Meet Energy Needs While Reducing Emissions

Overview & Synopsis

This report examines how low- and middle-income countries can meet growing electricity demand while pursuing decarbonization goals without compromising affordability. It introduces a methodology for assessing the concessional finance needed to close the “viability gap” between least-cost energy pathways and higher-ambition decarbonization scenarios. Using a stylized middle-income country case study, the report demonstrates how targeted concessional resources, blended finance, and private capital can support cleaner power systems, reduce emissions, and align national development priorities with global climate objectives.