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. These include renewable energy, low-carbon cities, energy efficiency, sustainable forest management, and climate-smart agriculture. These plans, called Nationally Determined Contributions , 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. 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.
These changes are taking place all over the planet. In East Asia, China, Indonesia, the Philippines, and Vietnam show a climate-smart investment potential of $16 trillion in green buildings. This region offers the largest potential opportunity. In Latin America and the Caribbean, Argentina, Brazil, Colombia, and Mexico have invested $2.6 trillion in sustainable transportation. In South Asia, India and Bangladesh have invested $2.5 trillion in climate-resilient infrastructure. In Central and South Africa, there is a $783 billion opportunity for clean energy in Cote d’Ivoire, Kenya, Nigeria, and South Africa. In Eastern Europe, Russia, Serbia, Turkey, and Ukraine shows a combined investment potential of $665 billion, mostly in energy efficiency and new green buildings. Finally, in the 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. What is also important to point out, is that important government action will be needed to enable the full scale of investment opportunities in these markets.
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