Mobilizing Private Sector Capital for Low-Carbon Investments in Developing Countries

The OECD estimates that $6.9 trillion a year needs to be spent globally until 2035 in order to maintain global temperature increase within a 2℃ range, of which 60-70% will be in emerging economies. The energy sector alone represents a third of this investment need, or circa $1.5 trillion in these countries (of which 40% is in energy generation). Against this, investment in clean energy generation has amounted to an average of $160 billion in emerging countries in the past couple of years. This suggest a funding shortfall of about $450 billion a year, equivalent to three times current levels of investment...