Paltry Emerging Market Investment Flows Point to Climate Catastrophe
Unless emerging markets start drawing considerably more cash to put toward clean energy, the world has little chance of limiting temperatures to 1.5C
Flooding in 2022 put a third of Pakistan underwater, displaced eight million and caused about $28 billion in damages.
Photographer: RIZWAN TABASSUM/AFPInvestment in clean energy in emerging markets is less than a tenth of what’s required to keep the world on course to limit global warming to 1.5C, according to a new report from BloombergNEF.
While developing economies account for almost half of global greenhouse gas emissions and over a third of energy-related emissions, the volume of capital invested in moving these countries to lower-carbon sources of energy “is insufficient given the size of the climate challenge,” BNEF said in a report published on Tuesday. The International Energy Agency estimates emerging economies will need an additional $1 trillion of investment per year to achieve net-zero energy systems, yet just $67 billion went to emerging economies last year, BNEF data show.