COP29 Lead negotiator: Africa holds 60% of solar potential, gets only 1% of related investments

There is a big gap in involving the private sector in climate finance formation, Yalchin Rafiyev, Deputy Foreign Minister of Azerbaijan and the COP29 Lead negotiator, said in an interview with Report.

Rafiyev noted that because the private sector plays three main roles in climate issues:

“The first issue is that companies take into account the environmental factor in their activities, some companies do this and others follow their example. The second issue is corporate social responsibility, meaning the company makes money from its commercial activities and spends a certain part of the money it earns on climate-related projects. The third and most important factor is the investment factor. There is a huge gap here, and one of the main reasons for this gap is sometimes incorrect risk assessment.”

The deputy minister highlighted that private sector representatives want to invest in developing countries. However, if they see a risk regarding the sustainability of the investment made in that country, they hesitate to implement their plans.

“For example, 60% of the world's solar energy potential is concentrated in Africa, but only 1% of the world's investments in solar energy go to Africa. This is because those private sector representatives consider it risky to invest in Africa. The fund that Azerbaijan will establish, which I mentioned earlier, serves exactly this purpose. That is, the fund will provide guarantees for private-sector investments in developing countries,” he noted.

You can read the full interview here.