Revisiting Anohu’s Financial Pathways for Decarbonisation in Global Growth Markets, Frontier Economies
Financing fossil fuel transition requires thinking out of the box as charted by Chinelo Anohu, writes Oluchi Chibuzor The London Climate Action Week 2026 had since come and gone several
The London Climate Action Week 2026 concluded weeks ago, but its importance persists. Over 100,000 attendees from 100 nations, 25 governments across six continents, 1,300 events, and 30 flagship events were part of the UN Global Climate Action Agenda platform. The discussion, "Beyond the Fossil Fuel Chokepoint: Financial Pathways for Decarbonisation," led by Oxford House and University of Oxford Climate Alumni Network (OxCAN), pushed the conversation to new heights.
Despite the event's success, funding the energy transition remains a challenge. This is where Chinelo Anohu, Founder/CEO of Mutandis Africa, stepped in to shed light on the matter. Anohu began by addressing the question of whether the world can finance the transition in an orderly, equitable, investable, and politically durable manner.
The challenge, she noted, is not only technical but also institutional, financial, political, and moral. While there is ample capital available, a lack of bankable instruments, credible project structures, and investable pathways hinder the progress. Funds often fail to reach where they are needed most due to the need for bankable instruments, credible project structures, investable pathways, and stable regulations.
Anohu emphasized that climate finance debates often focus on arithmetic, rather than emphasizing the need for bankable projects and viable cash flows. In Anohu's perspective, the fossil fuel economy is not merely an energy system but also a fiscal, revenue, employment, infrastructure, and political system. In frontier economies and resource-dependent states, fossil fuel revenues support social services and infrastructure, making the transition complex.
Treating these countries as mere extraction sites rather than partners in industrial transformation risks perpetuating existing inequalities. The focus should be on designing a financial architecture that reconciles the concerns of both the Global North and Global South. The London Climate Action Week was not just about discussing problems but also presenting solutions.
Anohu proposed five financial pathways for decarbonisation in global growth markets. For frontier economies, strong project preparation facilities are crucial, as poorly prepared projects cannot be rescued by good intentions, but well-prepared projects can attract capital beyond initial public contributions. Instruments matching the risk profile of transition assets are also necessary, as not all projects carry the same risks.
Different instruments, such as concessional first loss capital, guarantees, local currency financing, political risk insurance, revenue stabilisation mechanisms, blended finance, and regulatory reform, are needed to support various transition projects. The issue is not a lack of investors' understanding of climate change but rather that many transition projects are not tailored to the mandates of different investors.
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