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As more governments put in place targeted policies and incentives to achieve their climate change and green growth ambitions, the private sector has an unparalleled opportunity to deliver the investment needed to spur innovation and create thriving markets for climate-smart industry.
Green Buildings: A Financial and Policy Blueprint for Emerging Markets
During the next decade, green buildings represent a significant low-carbon investment opportunity in emerging markets—$24.7 trillion by 2030. Cities in emerging markets are expanding at a fast pace to keep up with high population growth and rapid urbanization. The floor area of the buildings that dot our skylines is expected to double by 2060. Most of this growth will occur in residential construction, particularly in middle-income countries. Meeting the demand for new buildings through green construction can spur low-carbon economic growth and create skilled jobs in emerging markets for decades to come.
Climate Investment Opportunities in Cities - An IFC Analysis
This report provides investment potential estimates across six key sectors: waste, renewable energy, public transportation, water, electric vehicles, and green buildings. Sector-specific investment potentials are estimated at the global and regional levels. The report also addresses urban resilience, financing solutions, and includes six deep dives into specific cities—one from each region—representing various sizes and stages of development.
Climate Investment Opportunities in South Asia
South Asia has among the highest economic growth rates in the world and represents a little over seven 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.
Creating Markets for Climate Business
Developing countries can meet climate targets promised in the landmark Paris Agreement by catalyzing trillions of dollars in private investments through a combination of smart policy reforms and innovative business models, according to Creating Markets for Climate Business. Creating Markets for Climate Business identifies seven industry sectors that can make a crucial difference in catalyzing private investment: renewable energy, off-grid solar and energy storage, agribusiness, green buildings, urban transportation, water, and urban waste management. Already, more than $1 trillion in investments are flowing into climate-related projects globally in these areas. But trillions more can be triggered by creating the right business conditions in emerging markets.
Climate Investment Opportunities in Emerging Markets
The report 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. The report also points to important government action to enable the full scale of investment opportunities in these markets.