Emerging markets are taking the lead in green innovation, says expert

Vaishali Nigam Sinha, co-founder of the leading Indian renewable energy generation and distribution company, highlights the progress of developing countries

While the world's eyes are turned to denialist trends in the United States and other rich countries, much of the fate of the climate transition is decided and built in developing countries. The emerging world today is capable of producing and sharing technologies and solutions in green finance and energy generation, placing it at the forefront of innovation, points out Vaishali Nigam Sinha, co founder and president of sustainability at ReNew, a leading Indian company in renewable energy generation and distribution.

The executive was also co-chair of the B20 Infrastructure Finance Task Force, a business forum linked to the G20 meeting in Brazil last year. On that occasion, she published an article in Valor in which she denounced the low participation of emerging countries in the flows of green investment in the world. The challenge today is to mobilize the public sector and multilateral institutions to reduce the perceived risk of projects in these countries and encourage the attraction of private capital.

The challenges of green finance in the emerging world are part of Sinha's company's routine. ReNew develops projects in several Indian states and is listed on Nasdaq. One of its most daring initiatives is an integrated generation system that combines wind farms, solar panels, and batteries, with the aim of overcoming one of the biggest bottlenecks of renewable energy: intermittency. The executive states that it is already possible to supply firm and reliable electricity on a scale similar to that of polluting power plants, such as thermal power plants.

Sinha also argues that COP30 will be a crucial moment for emerging countries, for whom much is at stake. This is the moment when it will be necessary to move from rhetoric to action, she says.

She warns that, of the US$2.5 trillion in green investment funds today, only a small fraction is directed to emerging economies.

How to increase the share of emerging economies?

Vaishali Nigam Sinha: It is urgent to channel investments in clean energy to emerging markets. Despite being home to more than half of the world's population and having immense potential for expansion, these regions attract less than 15% of global financing for clean energy. Mobilizing private capital may seem daunting, but proven strategies, if scaled up, can significantly accelerate climate action and sustainable development.

What are these strategies?

Sinha: India, for example, has financial incentives, such as the Production-Linked Incentive Program, in addition to targeted subsidies, and has been developing infrastructure through Green Energy Corridors. These measures have boosted sectoral growth. From 2017 to 2025, there were more than US$62 billion in investments in energy transition. India has also implemented robust risk reduction mechanisms to attract private capital. The founding of the Solar Energy Corporation of India [SECI] was crucial. It acts as a central procurement agency, aggregating demand and securing acquisition through long-term Power Purchase Agreements. Its Payment Security Mechanism guarantees timely payments to developers, reducing perceived risk and allowing access to cheaper financing. SECI also facilitates obtaining regulatory licenses and authorizations, reducing project uncertainties. Today, Indian clean energy companies plan to raise between US$3 billion and US$4 billion in fiscal year 2026, reflecting an unprecedented mobilization of public capital and growing investor confidence.

One point you addressed in the B20 task force was the review of the role of the public sector in project financing. How is the public sector failing and how could it be more effective?

 Sinha: The public sector must rethink its role, not only as a financier, but as a market facilitator and long-term partner. It can catalyze private investment through strategic reforms and targeted interventions. In India, public sector units have implemented renewable purchase obligations, enabled open access green markets, and provided fiscal incentives that have increased the viability of projects. National programs, such as grid modernization and storage support, have improved project flows.

You also suggest changes in the role of multilateral institutions.

Sinha: In their case, we need more action on the financing architecture. Instruments such as blended finance, credit enhancement, and payment security mechanisms should be expanded to unlock private capital. Multilateral development banks and international financial institutions must evolve from traditional lenders to proactive facilitators of risk mitigation. They need to implement first-loss guarantees to absorb initial risks, offer payment security mechanisms to ensure predictable cash flows, and anchor blended finance structures that attract institutional investors. These tools are essential to make projects attractive where perceived risk impedes capital flows.

These US$2.5 trillion are considered insufficient to meet the international net-zero targets. But how much would be needed?

Sinha: The flow is far short of what is needed. In emerging markets, excluding China, investment in clean energy must increase five to seven times: from US$270 billion annually to at least US$1.7 trillion by the beginning of the 2030s. To meet the 2030 targets, India needs almost US$50 billion per year, far beyond the current flow of US$8 to 10 billion. But measures are being taken. The New Collective Quantified Target on climate finance, under negotiation, should replace the previous commitment of US$100 billion with a more ambitious and equitable framework. Institutions such as the World Bank have been expanding their climate finance portfolios, signaling more systemic support. It's not just about how much money is mobilized, but also where it flows, how it is applied, and whether it actually empowers countries to move towards resilient and low-carbon futures.

In emerging countries with large territories and populations, such as Brazil and India, what are the biggest challenges to investment in green energy? What kind of strategy can be effective?

Sinha: In large and diverse markets, regional inequality, market structure, and policy fragmentation add complexity to channeling green capital. The main challenges include the limited depth of capital markets, financial activity dominated by banks, and unequal political scenarios, which undermine investor confidence. Good strategies include policy consistency, targeted subsidies, and state-backed guarantee programs that attract private investment while safeguarding social equity and job creation. Project aggregation and standardized procurement structures are also effective in improving bankability and scale.

You advocate for incentives for renewable energy growth led by the consumer, i.e., individuals adopting them and driving the market. How are these developed?

Sinha: In India, there are programs such as subsidies for rooftop solar energy, accelerated depreciation, net metering, and direct benefit transfers. Digital platforms for real-time billing and peer-to-peer trading of surplus energy have democratized access to the market, empowering families and small businesses to engage in the energy transition. These efforts are guided by technology-based interventions. For example, targeted subsidies and production-linked incentives have catalyzed domestic manufacturing of solar modules and batteries. Policies such as the Green Hydrogen Mission and pumped-storage hydroelectric storage schemes align with the global momentum. “Ultra Mega” solar parks, smart grids, and blockchain-enabled energy trading bring new forms of capital and innovation. Many of these models can be successfully adapted to Brazil, which has a federal structure, abundant renewable resources, and an appetite for distributed energy.

Intermittency is a disadvantage of renewables. ReNew has a 24-hour generation project. How does it work?

 Sinha: The “round the clock” [RTC] project integrates solar, wind, and battery storage into a single product, providing reliable renewable electricity 24/7. The idea arose from the need to provide clean energy that could compete with conventional thermal power plants. The project leverages the complementary nature of wind and solar generation in different regions and states: Karnataka, Maharashtra, Rajasthan. By adding battery storage, we can smooth out fluctuations and provide electricity on demand, not just when the sun shines or the wind blows. It was designed to operate with an average annual load factor of 80%, equivalent to the reliability of a coal-fired power plant. The project will provide electricity to 1.1 million homes, impacting 5.5 million people.

 What is the cost?

Sinha: The combined investment is US$1.8 billion, making this project one of India's largest hybrid renewable energy initiatives. It not only addresses the challenges of intermittency and reliability, but is also proving profitable, with tariffs equivalent to thermal solutions. Securing financing required demonstrating technical and commercial viability, which involved extensive due diligence and risk mitigation. Managing operations in multiple states, each with its own weather patterns and regulatory environment, required advanced forecasting, digitization, and real-time control systems.

What bottlenecks arose?

Sinha: One obstacle was identifying locations where wind and solar resources complement each other, ensuring they were suitable for grid integration. The inclusion of battery storage was another important step. Storage technology is a significant investment. We focused on optimizing the size and operation of storage systems to balance reliability and cost. Bringing energy from dispersed locations also meant addressing technical and regulatory complexities. Transmission infrastructure in renewable-rich regions needs to keep pace with development, so we worked collaboratively with grid operators and invested in necessary upgrades. As the model was new to regulators and utility companies, we maintained dialogue with policymakers to develop frameworks and safeguards that would make the project viable and replicable.

What is the current reality of technology transfer and sharing among developing countries?

Sinha: Technology transfer and collaboration among these countries are evolving rapidly, challenging the old notion that innovation should flow only from developed nations. Today, emerging economies contribute more than 30% of global R&D spending, according to UNESCO, compared to 10% in 2000, and patent applications from these regions have increased by more than 200% since 2010. Initiatives from BRICS and IBSA [India-Brazil-South Africa Dialogue Forum] are driving joint research and technology sharing, and companies like ReNew are leveraging local expertise and cross-border partnerships. The rise of artificial intelligence amplifies this trend: at ReNew, for example, AI-based analysis improved electricity production by up to 1.5% and simplified maintenance, demonstrating that developing countries are not only adopting but also advancing cutting-edge technologies.

Despite the lower cost of renewable energies, the drop in demand for fossil fuels has not occurred. Will oil continue to grow along with renewable energies?

Sinha: The market inflection point will only arrive when policies, the economy, and regulatory certainty converge. For now, fossil and renewable energies will grow in parallel, but the global peak in demand for fossil fuels is projected for the mid-2030s, if national policies are aligned with the Paris goals. The Indian government, on the other hand, has implemented a long-term decarbonization path, reaching the goal of 50% clean energy by 2025 and implementing centralized auctions for the expansion of renewables. Although the growth of fossil fuels persists globally, India's model shows that a determined government policy can ensure that renewable energies make great strides in terms of investment and energy mix.

What are your expectations for COP30 in Brazil?

 Sinha: COP30 is happening at a crucial moment for the Global South. There is a growing sense that recognition alone is not enough. Tangible results are needed. The summit needs to go beyond declarations and become a space for real implementation, financing, and transparency. COP29 set the new target of US$300 billion annually until 2035, but developing countries need much more to decarbonize and build resilience: close to US$1.7 trillion per year. There is less patience for promises that do not result in flows and for ambitions that are not backed by allocations. The COP will be a test of credibility. Will we see clear financing timelines? Will the [carbon credit] markets be unlocked? Will national commitments reflect the urgency of tripling renewable energy capacity? The challenge now is execution. This means accelerating renewable energy with planning that prioritizes the electricity grid; aggregating demand for green hydrogen and low-carbon materials; and publishing transition plans that connect ambition to action. It also means addressing sectors that are difficult to downsize, such as steel, cement, and shipping.

We need consistent rules so that companies can focus on decarbonization, instead of navigating a labyrinth of fragmented regulations.

With the advent of small modular reactors, many analysts believe it is worthwhile to include nuclear energy in the decarbonization equation. Is this the case?

 Sinha: The renewed interest in nuclear energy reflects the recognition that the transition to clean energy will require a diverse set of solutions. Small reactors are promising; they have shorter construction times, improved safety features, and the ability to complement variable renewable generation. But challenges surrounding cost competitiveness, regulatory frameworks, waste management, and public perception need to be addressed for nuclear energy to play a broader global role. In India, the government has reaffirmed its long-term nuclear ambitions, aiming for 100 GW of capacity by 2047, while accelerating renewable energy, storage, and grid modernization.