This study investigates why emerging markets and developing economies have struggled to scale up investments to support their transition to a low-carbon energy system. This work focuses on framing the argument for scaling up resources from both environmental and socioeconomic perspectives. It also examines the current clean energy landscape in emerging and developing economies and identifies its challenges. The findings reveal that investments in clean energy have failed to reach scale in emerging and developing economies due to significantly higher risks, which translate to a high cost of capital. This study emphasizes that to lower the cost of capital, improvements to the macroeconomic environment must work in tandem with policies and de-risking tools to bridge the financing gap. The findings provide a roadmap for emerging and developing economies to seize the investment opportunities associated with the energy transition to ensure a more sustainable and equitable future.