Benjamin Attia: Why We Want Climate Finance to Be Boring
Jul 10, 2024
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Benjamin Attia, energy transition researcher, delves into blended finance for renewable energy projects in emerging markets. He discusses the challenges, solutions using innovative financial structures, and the need for private investments. The podcast also explores his career shift from law to the energy industry and his passion for working in energy and environmental policy.
Benjamin Attia emphasizes the importance of blended finance for climate projects in emerging markets.
Rising global interest rates impact renewable energy investments, requiring innovative solutions for project financing.
Deep dives
Ben Atiyah’s Career Transition to Energy Research and Finance
Ben Atiyah, an energy transition researcher, fell in love with energy during his undergraduate studies, leading to a diverse career in energy research. His expertise spans topics from finance to policy and market trends. Ben's focus on climate finance flows in emerging markets is reflected in his work at Wood McKenzie and his current doctoral research at Oxford.
Driving Factors Behind Ben's Career in Energy
Ben's career shift towards energy stemmed from a gradual realization during his master's thesis that he was at the juncture of a significant industry transformation. The compelling nature of the energy sector's transition, particularly in combating climate change, motivated Ben to delve deeper into energy research, eventually specializing in emerging markets' energy finance.
Challenges in Renewable Energy Financing and Interest Rates
Ben's work unveils the challenges posed by rising global interest rates on renewable energy investments, especially in developing economies. The tightening monetary policies elevate the cost of capital, impacting renewable projects heavily reliant on upfront financing. Overcoming barriers such as perceived risk premiums and supply chain issues is essential in diversifying renewable energy financing and making projects more competitive.
Blended Finance and Creative Solutions in Energy Investments
Ben Atiyah's enthusiasm for blending market and sub-market rate capital in project financing epitomizes the innovative space of blended finance. He emphasizes the need for creative solutions to enhance private investment in energy projects. Leveraging tools like public guarantees at market rates can effectively mitigate risks, attract more private capital, and drive impactful investments in the clean energy sector of emerging markets.
Benjamin Attia, energy transition researcher, energy systems modeler, and long-time Hub fellow, joins the show to talk about his career as a professional researcher, explain why blended finance is more than a buzzword, and help us nerd out on climate finance.