How much climate finance do low- and middle-income countries need?

This policy brief estimates the power sector financing requirement for Kenya and Ghana.

From:
Foreign, Commonwealth & Development Office
Published
30 July 2025
Country:
Ghana and Kenya
Document Type:
Briefing
Theme:
Climate and Environment and Infrastructure
First published:
12 November 2024
Authors:
Luscombe, H., Collier, W., Foster, V. and Fankhauser, S.

Abstract

This policy brief argues that, to estimate power sector financing requirements at the national level, comparing the financing costs of incremental investments between a Net Zero (NZ) and Business-as-Usual (BAU) energy sector investment plan provides a sound conceptual framework. Using the novel MinFin model, this policy brief estimates the power sector financing requirement for two LMICs, Kenya and Ghana, and explores the implications of alternative modes of climate finance delivery. The modalities examined include grants, loans, pay-as-you-go carbon credits, and debt write-offs.

This work is part of the Climate Compatible Growth (CCG) programme.

Citation

Luscombe H and others. ‘How much climate finance do low- and middle-income countries need?’ Climate Compatible Growth (CCG) COP29 Policy Brief Series, 2024

How much climate finance do low- and middle-income countries need? (PDF, 1,687 KB)

Updates to this page

Published 30 July 2025
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