Preparing for the global energy transition: Boosting EMDEs participation in global energy supply chains
March 2025
Context and Opportunity
Emerging market and developing economies (EMDEs) are pivotal to a successful global energy transition; home to most of the world’s population and many of the minerals and manufacturing capabilities needed for clean technologies. Supply chains for key technologies remain highly concentrated, heightening resilience risks and limiting opportunities for inclusive growth. For example, China accounts for over 80% of manufacturing across the solar value chain. In critical minerals, the share of the top three producing countries has increased since 2020, with particularly rapid concentration in nickel and cobalt refining.
Beyond concentration, the cost of capital in EMDEs is persistently higher than in advanced economies, undermining project profitability. To mitigate this, the UK launched the Global Clean Power Alliance (GCPA) to accelerate clean‑power deployment and collaboration between developed and developing economies. The Alliance brings together governments, industry and financiers to mobilise investment, coordinate offtake and standards alignment, and facilitate technology and skills transfer across clean‑energy supply chains.
Investment
15%
of global clean‑energy investment goes to EMDEs
Supply Chain
80%
of global photovoltaic manufacturing is concentrated in China
Climate Change
£1.2B+
annual investment in EMDE needed to meet a 1.5°C global warming goal set at COP28
Growth Gateway was tasked to help design the Alliance’s supply‑chain pillar, with the aim of expanding EMDE participation in clean‑energy value chains and addressing systemic barriers that impede investment, offtake and compliance.
Support Provided
Assessed opportunities & barriers for EMDE clean energy investment
Identified opportunity areas for emerging markets in clean‑energy supply chains, and assessed size in priority technologies (wind, EV batteries, and advanced biofuels)
- Analysed supply‑chain segments for priority clean‑energy technologies
- Identified feasible routes for EMDEs to enter the market in upstream/midstream segments
- Highlighted systemic barriers facing EMDEs: financing, infrastructure, offtake challenges, regulatory standards, and capability gaps
Recommended interventions to enhance EMDE participation
Recommended go-forth interventions for the GCPA to address identified challenges and realise the value offered by clean energy:
- Set up platform for offtake and financing solutions
- Outline supplier guidelines for phased standards compliance
- Create support for outcome-based regulatory approaches and scale supplier assistance programmes
- Coordinate unified tech access & skills partnership
Guided GCPA’s next steps to mobilise the plan
Convened governments and businesses to align on implementation roadmap. GCPA’s role will be to:
- Mobilise global coalitions to unlock financing, offtake and policy solutions that support EMDE participation
- Broker partnerships between governments, industry and Development Finance Institutions to drive scalable investment and capability transfer
- Coordinate delivery of targeted support that close critical gaps in current multilateral landscape
Impact Achieved
£100-150B+
Estimated EMDE value creation by 2030
2M+ jobs
to be created in EMDEs
24-month roadmap
Sequenced plan for GCPA implementation
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