What are the main challenges and opportunities presented by the green transition?
Developing countries that can effectively leverage renewable energy sources and green technologies will be better positioned to capitalize on the green transition , attracting investment and integrating more seamlessly into GVCs . The energy transition presents a unique opportunity for sustainable industrialization for LICs and LMICs. The emergence of new industries related to solar and wind energy, EVs, battery production, and innovative technologies such as hydrogen and advanced biofuels, offers these countries a pathway to integrate into Global Value Chains ( GVCs ). With global investments in clean energy reaching USD 1.8 trillion in 2023 alone, developing countries can capitalize on their natural resources, such as minerals needed for green technologies , to secure a foothold in these high-growth sectors. However, they also face financial challenges, as only 15% of global renewable energy investments are directed towards these countries, with a paltry 2% alloc...