# Energy Finance — Green Bonds, Carbon Markets and Clean Energy Investment

**URL:** https://thecodex.expert/energy/finance/
**Session:** 22 | **Date:** 2026-05-04

## Summary

Energy finance encompasses capital markets and financial instruments driving energy investment. Clean energy investment 2023: $1.7 trillion (IEA) — first time exceeding fossil fuels ($1.0T). Green bonds: cumulative $1 trillion+ by 2024 (Climate Bonds Initiative). Largest issuers: EIB, World Bank, KfW, France. India first sovereign green bond January 2023 (₹16,000 crore). EU ETS: €60-90/tonne CO₂ (2023-24). China ETS (launched 2021): ~8 billion tonnes/yr coverage — world's largest by volume. Carbon Border Adjustment Mechanism (CBAM): EU pricing imported carbon. WACC problem: India solar WACC 10-12% vs Germany 3-4% — adds $20-30/MWh to LCOE despite more sunshine. Blended finance: IFC guarantees reduce WACC in developing markets. JETPs (Just Energy Transition Partnerships): South Africa $8.5B, Indonesia $20B, India $100B. Sources: IEA World Energy Investment 2024, Climate Bonds Initiative 2024, ICAP 2024.