A population growth of 1.2 billion people over 35 years across Asian cities presents an opportunity to attract more than $20 trillion in climate-related investments, the International Finance Corporation (IFC) said in a report.
According to the World Bank Group member, six key sectors provide significant climate-related investment opportunities. These include green buildings, public transportation, electric vehicles, waste, water, and renewable energy.
The IFC report, “Climate Investment Opportunities in Cities”, found that from a global perspective, cities in emerging markets can attract $29.4 trillion in cumulative climate-related investments in the six key sectors listed above by 2030.
The Asia Pacific region boasts the highest climate smart investment potential, with the biggest opportunity in green buildings.
Vivek Pathak, IFC regional director for East Asia and the Pacific, said: “In Jakarta, there’s about $30 billion investment opportunity, particularly in green buildings, electric vehicles and renewable energy. The report shows megacities in Asia also have significant potential for investments that yield emission reductions.”
Cities are responsible for more than 70% of carbon dioxide emissions around the world and their response to climate change will be critical to limiting temperature rises.
“There’s a great urgency to address climate change – we must take meaningful action now,” said Philippe Le Houérou, the chief executive officer at the IFC.
“Cities are the next frontier for climate investments, with trillions of dollars in untapped opportunities. To deliver on the promise of climate-smart cities, the public sector needs to enact reforms that are aimed at attracting more private sector financing,” added Le Houérou.
©2018 funds global asia