According to a new report by the International Monetary Fund (IMF), Nigeria and other developing economies will need around $2tn per year by 2030 to reach net-zero emissions (N0) by 2050.
The global lender said in its report ‘Emerging Economies Need Much More Private Financing for Climate Transition’ that achieving net-zero emissions requires ‘substantial climate mitigation investment’ in developing markets and emerging economies, which account for about two-thirds of GHG emissions.
According to a report by the International Energy Agency (IEA), these countries will require around $2tn a year by 2030 to achieve this ambitious goal, with the bulk of that funding going to the energy sector, a five-fold increase from the $400bn climate investments planned for the next seven years.
However, we anticipate that public investment will remain at a low level, requiring the private sector to make a significant contribution to meeting the high climate investment needs of emerging markets and developing economies, according to our analysis of the Global Financial Stability report.
Estimates show that around 80% of investment needs will come from the private sector and that this percentage will increase to 90% when China is included in the analysis.
