By fully meeting the national targets they set under the Paris Agreement, South Asian countries can unlock $3.4 trillion of climate-smart investment opportunities , according to Climate Investment Opportunities in South Asia, a new report by IFC.
South Asia has among the highest economic growth rates in the world and represents a little over 7 percent of global carbon dioxide emissions. Six countries in the region -- Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka -- have enormous untapped opportunities in climate-smart investing in sectors including renewable energy, transport, green buildings, urban wastewater, climate-smart agriculture, and municipal solid waste management.
Two sectors stand out for future growth: due to rapid urbanization, green buildings represent an investment potential totaling more than $1.5 trillion across South Asia between 2018 and 2030; and green transport infrastructure and electric vehicles create an opportunity of over $950 billion to 2030. Such investments will generate further benefits by providing access to markets, enabling trade, and ensuring mobility, which in turn unlock economic growth and private investment.
