Finance for just and inclusive energy transitions 

The pathways to more and better energy are at a crossroads. While technological innovation and policy ambition are accelerating, the pace and inclusivity of change hinge increasingly on one key factor: finance.  

As the world prepares for World Energy Congress 2026 in Riyadh, the spotlight must turn to  financing the future - how funds can be mobilised, directed, and transformed to support multiple, diverse energy pathways and approaches in varied geographies worldwide, while ensuring that no one is left behind.  

Why climate finance is the missing link 

Despite clear targets and a surge in technologies, the financing required to achieve a lower carbon, equitable future remains insufficient, especially in emerging and developing economies. The cost of capital for such projects is often prohibitively high, and the risks associated with new technologies or markets can deter private investment. Without targeted financial flows and appropriate derisking, even well intended policies and projects risk deepening existing inequalities and leaving behind the very communities most vulnerable to climate change and energy poverty. 

Principles of just and inclusive finance 

A just and inclusive energy future requires that finance be sufficient, accessible, affordable, and aligned with social and economic priorities. This means: 

• Mainstreaming the needs of diverse populations in the design and implementation of inclusive finance instruments. 

• Blending public and private finance to de-risk investments and catalyse large-scale capital flows. This can be particularly important in developing countries. 

• Prioritising underserved regions and communities, ensuring high-quality project development, equitable access to funding and opportunities for participation. 

Innovative financing mechanisms 

To bridge the investment gap, a mix of conventional and innovative financial tools is essential: 

• Green bonds, green loans and sukuk: These have enabled countries like Cambodia and others in ASEAN to finance renewable energy projects in line with international standards. 

• Climate and innovation funds: pools of capital dedicated to low carbon and innovative technologies that can support reduced costs, energy resilience and deep decarbonisation. 

• Blended finance: Combining grants, concessional loans, multilateral development bank (MDB) finance and private investment reduces risks and increases the bankability of projects, especially in regions facing transition risk or lacking commercial viability. 

• Risk-sharing instruments: Sovereign guarantees, first-loss provisions, export credit agency (ECA) support, and political risk insurance can unlock private capital for projects that might otherwise struggle to attract funding. 

• Environmental credits and carbon markets: These generate additional revenue for new low carbon projects while incentivising emissions reductions. 

• Just transition funds and platforms: Dedicated funds ensure that resources are channelled toward social protection, retraining, and community development, particularly for workers and regions affected by the phase-down of fossil fuels. 

The role of public and private sectors 

Finance is a key enabler of more and better energy, but must be supported and aligned with local politics, policy, and regulation. No single aspect can assure success. 

Governments and development banks also play a pivotal role in leveraging, underpinning and directing inclusive finance, but the scale of the challenge demands active participation from the private sector,  and civil society to maximise impact. Public finance is crucial for early-stage and riskier projects, but private capital is needed to scale up and sustain viable solutions; working hand-in-hand to maximise volume and impact. Partnerships, co-financing arrangements, and blended finance models are proving effective in mobilising resources and sharing risks appropriately. 

Capacity building and local empowerment 

Financing directed solely at energy projects is not enough – the entire community ecosystem must be supported for projects to be successful. Capacity building-through education, vocational training, and support for entrepreneurship ensures that communities can participate in and benefit from energy advancements. Local ownership of energy systems, transparent decision making, and inclusive governance create lasting value and build public support for renewables and new technologies. 

Ensuring social protection and equity 

Just solutions require that governments and financial mechanisms support not only infrastructure, but also people. This means incentivising and investing in: 

• Social and labour protections for workers affected by energy transitions, including retraining and job creation in low-carbon sectors. 

• Community-led projects that generate local value and foster resilience. 

• Inclusive policy frameworks that address the needs of women, youth, and marginalised groups. 

Spotlight on Saudi Arabia 

The investment and financial strategy of Saudi Arabia’s Public Investment Fund (PIF) can be seen as an effective model of generating inclusive finance streams via collaboration between public and private sectors. Their recent Memorandum of Understanding with Macquarie Asset Management, for example, is forward-looking, attracting foreign institutional investments to support Saudi Arabia’s Vision 2030 goals of economic diversification and sustainable growth. 

With a focus on investment opportunities in sectors key to the country’s energy transition, like digital infrastructure, energy storage, and electric vehicle infrastructure, this strategy can provide a blueprint for other countries seeking global investment for localised, sustainable growth. 

The imperative of leadership dialogues 

Shifting geopolitical trends, domestic energy regulatory regimes, and volatile markets are just a few of the issues that continue to make unlocking sufficient finance for completing energy projects a challenge – including in areas once considered shockproof.  Conversations that convene all stakeholders, across government and business, sectors and societies, are the key to navigate this turbulence and deliver a brighter future. At World Energy Congress 2026, convening leadership dialogues on finance will be critical to: 

• Share best practices and lessons learned from diverse regions and sectors. 

• Align international, national, and local efforts to maximise impact. 

• Foster partnerships that accelerate the flow of capital to where it is needed most. 

• Ensure that the principles of justice and inclusivity are embedded in all financial strategies. 

Finance as a driver of equity and impact 

A future of more and better energy will be made possible only if it is financed in a way that leaves no one behind. By de-risking finance, embracing innovative solutions, fostering collaboration, and prioritising justice and inclusion, the global community can ensure that solutions are not only technically and economically viable, but also fair, resilient, and transformative for all. World Energy Congress 2026 is the platform to catalyse this vision-mobilising capital for a just and inclusive energy future.