Strategic levers to unlock energy investment TABLE 16 Source: World Economic Forum. Without answering these questions, the capital transition will lag behind technological potential, leaving clean energy deployment stalled and economic opportunity untapped. Policies and market forces Yet, the mobilization of capital at scale doesn’t occur in a vacuum. The ability to unlock investment hinges on the broader policy and market environment in which decisions are made. As governments recalibrate their policy mechanisms (e.g. subsidies, incentives, regulations) and investors grow more risk-aware, the tension between policy ambition and market realism is becoming a defining feature of the energy landscape. Understanding how these forces interact is critical to turning capital strategy into real-world deployment. The defining challenge of 2025 is the tension between policy ambitions and market realities. Governments have set ambitious targets, but financing gaps and shifting investment priorities threaten to slow progress. Several structural challenges are shaping this landscape. Strategic question What it means Why it matters Real-world examples 1. How can sufficient capital be mobilized at speed and scale?Expand blended finance models, risk-sharing mechanisms and public-private partnerships to unlock institutional and private investment – particularly in high-risk and underserved markets.Without accelerated capital flows, especially in emerging markets, deployment will fall short of demand and targets.Egypt’s $12 billion green hydrogen zone (Suez Canal Economic Zone) is co-financed by public- private consortia.110 2. How can energy investment portfolios be diversified across technologies and geographies?Balance funding between mature (solar, wind) and emerging (hydrogen, CCUS) technologies; allocate capital more equitably across regions to ensure balanced progress and reduce systemic risk.Diversification reduces systemic risks and ensures a more inclusive, resilient transition.Examples include Brazil’s wind-solar hybrid auctions,111 India’s rooftop solar lending,112 South Korea’s CCUS roadmap113 and Kenya’s geothermal scaling programme.114 3. How can the bankability of clean technology projects be enhanced?Improve project risk profiles through policy stability, clear revenue frameworks, expanding offtake frameworks and strengthening project development capacity to attract long-term financing.Making projects investable is essential to attracting institutional capital and enabling large- scale deployment.Examples include the United Arab Emirates’ green hydrogen offtake MoU (e.g. Masdar)115 and Chile’s regulatory clarity for green ammonia.116 Fostering Effective Energy Transition 2025 47