The biggest problem facing the global energy transition over the next decade isn’t technology or politics. It’s money.

Reconfiguring the world’s power systems to eliminate carbon emissions is going to be a multitrillion- dollar investment project. Over the past few years, clean energy has overtaken fossil fuels in terms of global spending, but one place is still falling short: developing economies. Rich nations tempted to rest on their laurels, now that a promise to mobilise $US100 billion ($148 billion) a year for climate in such countries appears to have finally been met, should watch out. The real fight is just beginning.

Japan has been fighting a rearguard action against the decarbonisation policies of its fellow rich countries, inserting language supporting ammonia, hydrogen, and LNG into the communique from a G7 meeting in Hiroshima in May.Credit: iStock

That’s because the world’s fossil fuel exporters aren’t about to take the challenge lying down. At stake are the energy policies of 10 emerging countries in Asia and Africa that will account for more than half the world’s additional population between now and 2050, and a concomitant share of its energy. They have economies highly dependent on foreign capital, either because of their rapid pace of development, or the fragility of their currencies. If rich nations don’t provide the funding for clean energy to fuel their growth, oil producers and their allies stand with chequebooks at the ready for the dirty alternative.

Flush with profits from high oil prices, Gulf monarchies — in particular........

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