Business Journal


Africa Targets $783bn from Climate-change Agreement by 2030

A report by the International Finance Corporation (IFC) shows that the Paris Climate Change Agreement adopted last year will give rise to about $23 trillion in investment opportunities in emerging markets between now and 2030.

The study is based on the identified contributions of 189 countries in the battle against global warming as well as on the underlying policies of 21 emerging-market economies. Truly, carrying out the plans submitted by the various concerned nations requires a massive investment in sustainable solutions, be it renewable, ecologic cities, energy efficiency, or in the sustainable management of forests and ecologic agriculture.

The study thus reveals that the East Asia and Pacific region has a potential of $16 trillion in opportunities for green building and other projects. Next are the Latin America and the Caribbean region where $2.6 trillion could be invested in sustainable transportation mainly. In South Asia, opportunities are estimated to $2.5 trillion in climate-resilient infrastructure.

Sub-Saharan Africa could receive $783 billion of investments, mainly to develop a clean energy sector. Eastern Europe for its part shows a potential of $665 billion in investments while the Middle East and North Africa region’s potential has been estimated at $265 billion.

“There has never been a better time than now for climate-smart investing. This reflects the dramatic reduction in the price of clean technologies and the rise of smart policies that are driving businesses to invest. In this context, it is important to set ambitious goals—which is why IFC has pledged to increase our climate investments to a goal of $3.5 billion a year by 2020 and catalyze another $13 billion through other investors,” said IFC Executive Vice President Phillipe Le Houérou.

The report also urges government to implement the needed measures for the release of these key investments.

-Gwladys Johnson

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