Sustainable and responsible energy investment in developing economies

Abstract

Energy is one of the key factors of production globally and its importance can never be underestimated. However, the current major source of energy is from fossil fuels. These fuels are not only unsustainable but also pollute the environment resulting in “global warming and climate change” with devastating effects on living and non-living things alike. This has called for the world to transition into a new energy economy by 2050. This involves the introduction of sustainable and environmentally friendly energy sources to phase out the energy from fossil fuels. This agenda has a huge financial implication, especially for the developing economies. In this chapter, we discuss sustainable and responsible energy investment, the role of environmental, social and governance (ESG) in energy investment in the new energy transition, financing the new energy for an inclusive green economy, creating an energy ESG Index for energy industry analysis, challenges and opportunities of sustainable and responsible investment (SRI) in the energy sector.