Energy transition investment in Emerging Markets and Developing Countries
Emerging markets and developing economies (EM&DEs) account for nearly half of global greenhouse gas emissions. But the volume of capital currently being deployed to transition these countries to lower-carbon sources of energy is insufficient given the size of the climate challenge. The BNEF report ‘Mobilizing Capital Into Emerging Markets and Developing Economies’ offers a snapshot of current conditions for energy transition investment. Investment into renewable energy capacity jumped 40% in the five years ending in 2021, compared to 2012-2016. The past five years also saw a 25% drop in fossil-fuel fired capacity investment in these markets with renewables attracting 15% more capital. This trend should continue if investors follow through on public and private investments. Fossil-fuel investment has dropped since 2019, but volumes remain significant.
Related Content #developing economies #renewables #climate finance
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