As the world turns more and more to pure forms energy and the energy transition is the big stake of our time, interest in investments in clean technologies is constantly growing and a very large part of them is now directed to projects on a stable basis RES and improving energy efficiency. The financing of these projects is now becoming a serious problem.

Even if we consider the issue of investment in energy on a global scale, we will see that we are talking about truly huge amounts. According to the International Energy Agency (IEA) in its recent World Energy Investment 2022 Report, the total amount invested worldwide in the energy sector last year was 2.4 trillion. USD, which is 8% more than last year. Of these, 60% are investments in clean energy, i.е. renewable energy projects, electrical grids, energy efficiency, electric mobility and nuclear energy. The remaining amount, i.e. approximately 1 trillion. dollars, was directed to thermal power plants, as well as to the exploration and production of oil and natural gas, coal and energy conservation in industry.

An interesting finding is that the transition to clean forms of energy comes at the expense of electricity, since 90% of clean energy production comes from electricity generation. So the question arises of further electrification and expansion of electrical networks both at the local level (national networks) and at the global level (see international electrical interconnections). The transition to clean forms of energy favors or rather presupposes the development of electric networks on a global basis, whether they concern distribution in urban and suburban centers or transmission of electricity over long distances, within a country or between countries or even continents (e.g. EuroAsia interconnector, EuroAfrica interconnector , interconnector Egypt-Greece).

Further electrification in both mature and emerging economies is a fixed goal that will ensure the further expansion of RES and clean energy in general (see nuclear energy, geothermal energy). That is why investments in electrical networks are now considered part of the clean technology.

The estimated amounts that will be required from now on to finance clean energy projects are unimaginable: IRENA estimates an annual investment of $5 trillion. USD (or 150 trillion by 2050) to reduce emissions to a satisfactory level (see Netzero 50). This target seems unrealistic when you consider that the current level ranges from 1 to 1.4 trillion. dollars a year. Can the above goal be universally recognized by banks and international financial institutions such as the World Bank, EIB, EBRD, but securing the necessary financing for clean energy investments is currently a major challenge.

And while there is no shortage of funds at the international level, with stagnant investment funds estimated at more than 150 trillion. dollars, access to them (through specialized funds and international institutions) is not an easy task, except for those who have the appropriate authority. In the case of investments in clean technologies, renewable energy, waste management, energy efficiency, recycling and similar projects, these powers are secured by issuing climate bonds and preferably green bonds.

In this direction, the efforts of the private sector, as well as banks, are moving to raise funds for green investments through the issuance of green bonds. According to IENE at a special conference organized recently (04.05) on this issue under the auspices of the British Embassy in Athens and in cooperation with the London Climate Bond Initiative (CBI), these are bonds issued by interested companies or even governments based on specific specifications, while the money raised goes exclusively to clean energy or recycling projects.

At the moment, green bonds have been issued for a total amount of 2 trillion. USD, while in 2022 USD 450 billion worth of green bonds were issued worldwide. These amounts correspond to only 3% of the total annual global bond issuance market (fixed income markets), so opportunities for further green bond issuance bonds are really great. .

Green bonds are currently a key tool for raising and attracting investment funds that provide fast and guaranteed financing for renewable energy projects and clean energy in general. And the methodology by which the green bond is issued and tracked to maturity by bondholders ensures that the funds raised are used properly and that projects are built and operated (see https://www.iene.eu /en/congress/33/green -bonds).

In South Eastern Europe, the green bond market is extremely limited, and of all the countries in the region, Greece has a clear lead, having issued green bonds totaling 2.4 billion euros over the past three years. The companies and entities that issued the bonds in question include TERNA Energy, Ellactor, Mytileneos, National Bank (NBG), Piraeus Bank and Noval Properties. At the same time, there is an interest of the Greek government in issuing green government bonds (sovereign green bonds) in the amount of about 1-1.5 billion euros in the second half of 2023 or early 2024, following the example of other countries within the EU, but also in a broader sense , for example, Serbia, which issued green government bonds worth 1 billion euros to finance renewable energy projects.

Mr. Kostis Stambolis is President and CEO of the Energy Institute for South East Europe (IENE) and director of the energy portal Energia.gr.