LeapFrog’s Climate Investment Strategy Co-Heads Souleymane Ba and Nakul Zaveri led the conversation on an inflection point in the climate investment landscape. Climate solutions such as renewable energy and clean transport have each crossed commercial viability thresholds, making the economics of clean energy in growth markets increasingly competitive. The conversation demonstrated how the market has shifted from whether these investments are viable to how they can be structured and replicated at the speed and scale the transition demands.

The populations of Asia and Africa are industrialising at pace, and the infrastructure choices made in this decade will shape emissions trajectories for generations. While these regions contribute about a quarter of global GDP, emerging market and developing economies (other than China) attract just 14% of global climate finance flows. Getting institutional capital into the right companies, at this moment, determines the trajectory of the world’s climate goals.

Two companies illustrated what commercial-scale climate innovation looks like in practice. Battery Smart, India’s largest electric vehicle battery swapping network, and ReNew Green, one of India’s leading renewable energy platforms for commercial and industrial use.  Both companies are backed by LeapFrog capital and reflect how growth markets are at the front line of the global energy transition.

Dr Andy Kuper, Founder and CEO of LeapFrog Investments, said: “Energy demand across Asia and Africa is growing at a pace the world has not seen before. The only way to meet it, at the scale and affordability these markets require, is through clean technology. The economics now make that possible. We are seeing the investment opportunity expand in real time and rapidly, and the companies best placed to capture it are building solutions for billions of emerging consumers from the ground up.”

Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, said: “Energy access and decarbonisation are not competing priorities, they are the same agenda. In the world’s fastest-growing markets, particularly in Asia and Africa, clean energy is the most affordable, scalable path to universal access. The technology and business models now exist to deliver clean energy profitably at scale. The investment community has an opportunity to accelerate capital into these markets and unlock transformative growth.”

Lord Jim O’Neill, former UK Commercial Secretary to the Treasury and former Goldman Sachs chairman, said: “Growth markets have been systematically underweighted in institutional portfolios for decades. The green transition is an opportunity to correct that and the commercial case has never been stronger.”

Dr Steve Howard, Chair, Climate Advisory Board, LeapFrog Investments said: “In many growth markets, particularly across Asia, the underlying economics of clean energy are becoming increasingly compelling. For long-term investors, the opportunity is clear: energy demand continues to grow, and delayed action on the transition is likely to result in higher costs and more constrained pathways over time.”

Amer Baig, Chief Investment Officer a.i, Green Climate Fund, said: “The Green Climate Fund has a strong track record of using scarce public capital to unlock commercial finance at scale for climate action in developing countries. Through a suite of innovative financial tools, such as equity, concessional debt and guarantees; and blended finance vehicles, we work with local and global partners, including from the UK to crowd in institutional investors, derisk private sector investments in climate and strengthen green capital markets. GCF’s portfolio is helping scale up renewable power, storage and grid solutions and developing commercially viable models that can be replicated and expanded by private investors for climate mitigation and adaptation benefits.”