GEOPOLITICAL AND INVESTMENT BARRIERS IN THE GLOBAL ENERGY TRANSITION: CHALLENGES FOR DEVELOPING ECONOMIES
DOI:
https://doi.org/10.55960/jgf.v9i1.288Keywords:
carbon policy, clean energy investment, climate finance, energy transitionAbstract
The global transition to low-carbon energy systems offers unprecedented opportunities and challenges for developing countries, particularly in Asia and sub-Saharan Africa. Yet, while the regions are the key drivers of global energy demand growth, they remain marginal in terms of global clean energy investment. This paper examines structural, financial, and geopolitical aspects that constrain capital mobilization for the energy transition in the developing world. Qualitative content analysis is utilized to analyze government strategy, international policy architecture, and market response between 2010 and 2025. Key conclusions emphasise a sustained mismatch between the availability of capital and the deployment of investment, the latter being encouraged by the barriers as the high upfront costs associated with renewable energy, perceived levels of investment risk, carbon policy exposures, and unstable regulatory frameworks. Trade measures, disrupted supply chains, and geopolitical tensions add additional layers of complexity to the investment picture. Innovative financing tools and corporate-driven procurement of renewables are not enough; broader reforms are needed to direct investment flows towards sustainability. The research findings suggest that financing and policy innovation as well as stable geopolitical space and an inclusive international cooperation is needed to support energy transition in the Global South.
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