November 2016: The World Bank’s International Finance Corporation (IFC) has issued a report, titled ‘Climate Investment Opportunities in Emerging Markets: An IFC Analysis,’ which shows that the Paris Agreement on climate change has accelerated opportunities for climate-smart investment in emerging markets. The report estimates those opportunities at US$22.6 trillion by 2030.

Based on national climate change commitments reflected in Nationally Determined Contributions (NDCs) submitted by countries under the UNFCCC, as well as on underlying policies of 21 emerging market economies accounting for 48% of global greenhouse gas (GHG) emissions, the report identifies sectors in each region with the highest potential for investment. Key climate-smart investment opportunities in emerging markets include: green buildings in East Asia; sustainable transport in Latin America; climate-resilient infrastructure in South Asia; clean energy in Africa; energy efficiency and transport in Eastern Europe; and renewables in North Africa and Middle East.

The report also outlines ways for governments to unlock private investments in climate solutions, including: achieving NDC goals; strengthening the private sector investment climate; and strategically using limited public finance.

A member of the World Bank Group, IFC is the largest global development institution focused on the private sector in emerging markets. In 2016, IFC’s long-term investments in developing countries reached nearly US$19 billion. [Climate Investment Opportunities in Emerging Markets: An IFC Analysis] [Report Factsheet: Climate-Smart Investment Opportunity after the Paris Agreement] [IFC Press Release] [IFC News Article] [Decision 1/CP.21 Adopting Paris Agreement]