Approximately 60% of this funding will need to come from the private sector, providing scale capital deployment opportunities at attractive risk-adjusted returns.
The decarbonisation of emerging markets and developing economies (EMDEs) is critical to achieving global climate goals. These markets — which include countries such as Indonesia, Malaysia, Thailand and India — generate around two-thirds of today’s energy-related carbon dioxide emissions but remain chronically underfunded, receiving less than 15% of global clean energy investment.
This represents a multi-trillion-dollar investment opportunity, with EMDEs excluding China requiring a six-fold rise in clean energy investments to US$1.6 trillion ($2.06 trillion) annually by the early 2030s to ensure increasing energy needs are met in alignment with the Paris Agreement.
