WASHINGTON – Ocean Conservancy, in partnership with the Ocean Risk and Resilience Action Alliance (ORRAA), has released a new report outlining how leaders can catalyze finance for low-and-middle-income countries to support the transition to renewable energy. The report, entitled “Catalyzing Offshore Wind in Developing Nations: The Role of Concessional Finance,” offers a comprehensive overview of the current climate finance landscape and renewable energy financing avenues, highlighting the transformative potential of concessional finance in accelerating the deployment of offshore wind projects in developing countries.

“Accelerating the transition to clean energy is crucial to addressing climate change and protecting the ocean,” said Shamini Selvaratnam, associate director of international climate and clean energy at Ocean Conservancy and co-author of the report. “Our ocean holds powerful solutions that can help limit greenhouse gas emissions. We know that offshore wind, built responsibly, has the power to provide more than one-third of the globe’s power needs, but we must make affordable, equitable financing available to emerging and developing markets. This approach not only makes offshore wind projects feasible but also empowers governments to commit to sustainable energy transitions.”

Key strategies outlined in the report include establishing and deploying technical assistance and direct concessional finance to governments; and deploying concessional finance through private entities, blended with commercial sources. The report also provides recommendations for how to most effectively implement concessional financing, including:

• Ensuring offshore wind projects deliver positive biodiversity impacts through responsible design, construction, and operation; creating a win-win solution for energy transition and conservation.
• Enhancing technical assistance to national governments to boost regulatory capacity, map offshore wind resources, identify sites, protect biodiversity, and upgrade infrastructure.
• Increasing concessional finance for offshore wind via climate finance mechanisms as countries become investment-ready.
• Fostering partnerships among multilateral banks, donor governments, public and private sector development partners and civil society to mobilize resources. 

Since the Industrial Revolution, the ocean has absorbed more than 90 percent of the heat trapped by the greenhouse gasses released from burning fossil fuels; and the absorption of this excessive heat has pushed ocean systems to the brink. But the ocean also has the potential to support the transition to a clean energy future. Among the many ocean-based climate mitigation solutions being proposed, few have more promise or potential than offshore renewable wind, particularly in developing and emerging economies. However, of the 315 offshore wind farms active worldwide, there is only one operational wind farm in a developing country outside China. 

“Concessional finance is not just about accessible funding; it’s about creating the conditions for success by addressing the unique challenges that developing countries face. This report provides a clear roadmap for leveraging these financial tools to catalyze offshore wind projects,” said Selvaratnam.

Read the report here.

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