Financing the Energy Transition 2025

28 Rystad Energy. (2024). Enable or inhibit: Power grids, key to the energy transition, require $3.1 trillion in investments by 2030. https://www.rystadenergy.com/news/power-grids-investments-energy-transition-permitting-policies. 29 International Energy Agency (IEA). (2024). World Energy Investment 2024. https://www.iea.org/reports/world-energy- investment-2024. 30 Friedrich, J. et al. (2023). This Interactive Chart Shows Changes in the World’s Top 10 Emitters. World Resources Institute. https://www.wri.org/insights/interactive-chart-shows-changes-worlds-top-10-emitters. 31 International Energy Agency (IEA). (2024). World Energy Investment 2024. https://www.iea.org/reports/world-energy- investment-2024. 32 International Energy Agency (IEA). (2024). World Energy Investment 2024. https://www.iea.org/reports/world-energy- investment-2024. 33 Mitsui & Co. (2024). Green Finance in Latin America: Current Status and Challenges – Growing Expectations for the Development of Green Taxonomies. https://www.mitsui.com/mgssi/en/report/detail/__icsFiles/ afieldfile/2024/06/03/2404k_omori_e.pdf. 34 International Energy Agency (IEA). (2023). Latin America Energy Outlook 2023. https://www.iea.org/reports/latin-america- energy-outlook-2023. 35 United Nations Economic Commission for Latin America and the Caribbean (ECLAC). (2023). The economics of climate change in Latin America and the Caribbean, 2023: financing needs and policy tools for the transition to low-carbon and climate-resilient economies. https://www.cepal.org/en/publications/68712-economics-climate-change-latin-america-and- caribbean-2023-financing-needs-and. 36 United Nations Environment Programme Finance Initiative (UNEPFI). (2023). Common Framework for Sustainable Finance Taxonomies for Latin America and the Caribbean. https://www.unepfi.org/publications/common-framework-for- sustainable-finance-taxonomies-for-latin-america-and-the-caribbean/. 37 Notes: –A contract for difference (CfD) is a long-term contract between an electricity generator and low carbon contracts company (LCCC). The contract enables the generator to stabilize its revenues at a pre-agreed level (the strike price) for the duration of the contract. –A feed-in tariff (FIT) provides a guaranteed, long-term price for renewable energy that is at or above current market rates. This guaranteed price reduces the risk and uncertainty associated with new renewable energy installations, thereby encouraging new producers to make initial investments. –Under a feed-in premium (FIP) scheme, electricity from renewable energy sources (RES) is typically sold on the electricity spot market and RES producers receive a premium on top of the market price for their electricity production. –Utility rate-based tariffs are documents that dictate how utility companies charge customers for their energy use. Tariffs are made up of two main costs: unit rate (the price per unit of energy) and the standing charge (a daily fee that covers the cost of supplying energy, regardless of how much energy is used). 38 United Nations Environment Programme Finance Initiative (UNEPFI). (2023). Common Framework for Sustainable Finance Taxonomies for Latin America and the Caribbean. https://www.unepfi.org/publications/common-framework-for- sustainable-finance-taxonomies-for-latin-america-and-the-caribbean/. 39 CESCE. (2024). Póliza Verde (Green Policy) – What is Póliza Verde? https://www.cesce.es/en/cesce-poliza-verde-green- policy. 40 European Investment Bank (EIB). (2022). Enel agrees on €600 million facility with the EIB and SACE for sustainability- linked financing in Latin America. https://www.eib.org/en/press/all/2022-195-enel-agrees-on-eur600-million-facility-with- the-eib-and-sace-for-sustainability-linked-financing-in-latin-america. 41 International Energy Agency (IEA). (2023). Electricity Grids and Secure Energy Transitions. https://www.iea.org/reports/ electricity-grids-and-secure-energy-transitions. 42 The Energy Technology Development and Demonstration Programme (EUDP). (2024). About the EUDP. https://eudp.dk/ en/om-eudp. Financing the Energy Transition: Meeting a Rapidly Evolving Electricity Demand 30