"Developed countries should assume more responsibility"
Koç Holding Deputy Chairman of the Board of Directors, Ali Y. Koç, made evaluations on energy transformation and financing models within the scope of COP31.
Quick Look
- Koç Holding Deputy Chairman of the Board of Directors, Ali Y.
- Koç, in his speech at COP31, emphasized that developed countries should take more responsibility in financing the energy transition and that climate targets cannot be met only by market forces.
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Why It Matters
Energy transition and financing issues are being discussed within the scope of the COP31 climate summit. Ali Y. Koç draws attention to the imbalances in the distribution of global energy investments.
Ali Y. Koç, Deputy Chairman of the Board of Directors of COP31 Global Business Partner Koç Holding, made evaluations in the interview he attended at the "Bloomberg Green at COP31" event organized by Bloomberg Green.
Stating that all countries are trying to deal with national security, energy independence, Chinese competition and geopolitical risks, Koç said, "The side that can dominate capital, energy and industrial capacity will win." Koç pointed out that electrification is the basis of energy transformation, which is extremely important in terms of national security, competitiveness, durability and success.
“WE CANNOT LEAVE CLIMATE GOALS TO MARKET FORCES ALONE”
Koç said that clean energy and economic priorities have become more parallel for the first time than ever before, but market forces cannot meet all climate targets. Mentioning the need to strengthen financing models that will mobilize private capital, especially in developing countries, Koç stated that it is important for developed countries to assume more responsibility in financing the transformation, considering their historical emissions. Koç said, "Therefore, we cannot leave climate targets only to market forces. What does this mean? If this COP and subsequent COPs can develop policies on how to address climate problems in areas where market forces cannot produce solutions, significant progress can be made."
Stating that clean energy needs cost-effective financing, Koç said, "When you look at the world, you see that the people living in developing countries other than China, which constitute two-thirds of the world's population, can receive only 15 percent of clean energy investments. Although Africa has 20 percent of the world's population, it receives only 2 percent of these investments. Therefore, being able to attract financing is one of the most important factors that determine whether you will be successful in this field and whether you can make profitable investments."
“DEVELOPED COUNTRIES SHOULD ASSUME MORE RESPONSIBILITY IN FINANCING THE TRANSFORMATION”
Open Questions
- How will developed countries increase financing responsibility?
- What could non-market climate policies be?
