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Climate Investment Opportunities Total $23 Trillion in Emerging Markets by 2030, Says Report

 

Since the Paris Agreement was adopted in December 2015, a total of 189 countries have submitted their national plans that target aggressive growth in climate solutions—including renewable energy, low-carbon cities, energy efficiency, sustainable forest management, and climate-smart agriculture. These plans, called Nationally Determined Contributions (NDCs), offer a clear roadmap for investments that will target climate-resilient infrastructure and offset higher upfront costs through efficiency gains and fuel savings.

An IFC report launched in November shows that the historic global agreement on climate change adopted in Paris helped open up nearly $23 trillion in opportunities for climate-smart investments in emerging markets between now and 2030.

IFC’s study, based on the national climate-change commitments and underlying policies of 21 emerging-market economies, representing 48 percent of global emissions, identifies sectors in each region where the potential for investment is greatest. This includes:

  • East Asia and the Pacific: green buildings—where China, Indonesia, the Philippines, and Vietnam show a climate-smart investment potential of $16 trillion.
  • Latin America and the Caribbean offer the next largest opportunity—particularly in sustainable transportation, where the potential for investment in Argentina, Brazil, Colombia, and Mexico is about $2.6 trillion.
  • South Asia: Opportunities are mostly seen in climate-resilient infrastructure, where $2.5 trillion of opportunities exist in India and Bangladesh.
  • Sub-Saharan Africa represents a $783 billion opportunity—particularly for clean energy in Cote d’Ivoire, Kenya, Nigeria, and South Africa.
  • Eastern Europe, with its biggest markets—Russia, Serbia, Turkey, and Ukraine—shows a combined investment potential of $665 billion, mostly in energy efficiency and new green buildings.
  • Middle East and North Africa: the total climate-investment potential for Egypt, Jordan, and Morocco is estimated at $265 billion, over a third of which is for renewable-energy generation, while 55 percent ($146 billion) is for climate-smart buildings, transportation, and waste solutions.

The report also points to important government action to enable the full scale of investment opportunities in these markets.

 

Read and download: Climate Investment Opportunities in Emerging Markets: An IFC Analysis*

*Please note that the current version has been updated with some data clarifications.

 

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