Thursday Apr 18, 2024
Thursday Apr 18, 2024
Monday, 4 December 2017 00:26 - - {{hitsCtrl.values.hits}}
Sri Lanka has $ 18 billion worth of climate investment opportunities, which would be part of South Asia’s $ 3.4 trillion in investment in cities and infrastructure by 2030 under the Paris Agreement, according to a new report released by IFC, a member of the World Bank Group.
Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka, which contribute 7.38% of global carbon dioxide emissions, have enormous but untapped opportunities in climate-smart investment in sectors including renewable energy, transport, green buildings, urban water, climate-smart agriculture and municipal solid waste.
The report identifies $ 18 billion in climate investment opportunities in Sri Lanka alone, along with $ 3.1 trillion in India, $ 172 billion in Bangladesh, $ 42 billion in Bhutan, $ 2 billion in the Maldives and $ 46 billion in Nepal.
In Sri Lanka municipal solid waste management and climate-smart urban wastewater were highlighted. Recognising the need for solid waste management, Sri Lanka’s national policies create a $ 3.5 billion opportunity for investment in the sector. Wastewater management, identified as a key priority, opens an investment opportunity of more than $ 2.7 billion.
“The only way that South Asian countries can take advantage of these climate investment opportunities is through a strong and engaged private sector,” said IFC CEO Philippe Le Houérou. “We also need to have a comprehensive approach to creating markets for climate business in key sectors. That means putting in place necessary policy frameworks, promoting competition and building capacity and skills to open new markets.”
The impacts of climate change on business assets, supply chains and business interruptions are already a major concern for South Asian companies. This concern, coupled with the urgency of addressing air pollution, reinforces the need for immediate action while capitalising on existing investment potential.
The South Asia region has seen a surge in investment in clean energy and energy efficiency in recent years, contributing to significant development gains. IFC’s report highlighted two sectors for future growth: due to rapid urbanisation, green buildings represent an investment potential totaling more than $ 1.5 trillion across South Asia between 2018 and 2030 and green transport infrastructure and electric vehicles create an opportunity of over $ 950 billion to 2030. Such investments generate further benefits by providing access to markets, enabling trade and ensuring mobility, which in turn stimulate economic growth and private investment.
India’s impressive national target of generating 175 GW of renewable energy by 2022 represents almost $ 448 billion in investment potential. This will be crucial given India’s aim to electrify all new vehicle sales by 2030, creating a potential investment opportunity of almost $ 670 billion if this goal is fully met.
In Bangladesh the Government’s prioritisation of wastewater infrastructure projects creates a $ 13 billion investment opportunity and the climate-smart agriculture sector could see investments of more than $ 9 billion.
Developing Bhutan’s 25,000 MW of economically feasible hydropower potential will generate an investment opportunity of over $ 40 billion as well as substantial export revenues. The Government’s ambitious electric vehicle target creates over 320 million worth of potential for investment in the sector.
The Maldives’s goals to climate-proof its infrastructure against rising sea levels and extreme weather events translates into an investment opportunity of at least $ 1.5 billion in transport-related infrastructure and $ 200 million in green buildings by 2030.
Achieving Nepal’s ambition to install 12,000 MW of hydropower capacity creates an investment opportunity of $ 22.5 billion. The Government’s policy push to make its agricultural sector more climate friendly, including through the use of efficient technologies, represents an investment opportunity of $ 4.8 billion.
