Nigeria and other rising economies will require nearly $2 trillion yearly by 2030, according to the International Monetary Fund, in order to make the switch to net-zero emissions by 2050.
The Punch reported that the international lender made this statement in a recent report titled “Emerging economies need much more private financing for climate transition”
According to the report, emerging markets and developing countries, which now generate around two-thirds of greenhouse gases, must make significant investments in climate mitigation if we are to achieve the transition to net-zero emissions by 2050.
The International Energy Agency estimated that these countries will require nearly $2 trillion yearly by 2030 to meet their ambitious objectives, with the majority of that money going to the energy sector. The $400 billion in climate investments currently slated for the following seven years will be increased by a factor of five.
“However, we anticipate that growth in public investment will be constrained. As a result, the private sector will need to significantly contribute to the significant climate investment demands for emerging markets and developing nations.
“According to a chapter of our most recent Global Financial Stability Report that provides analytical support, the private sector will be required to provide around 80% of the necessary investment, and this percentage increases to 90% when China is taken out of the equation.”
