APRIL 11, 2022
By Paul Homewood
Get your wallet out!
Eight emerging markets – India, China, Indonesia, Kenya, South Africa, UAE, Nigeria and South Africa – will need $94.8 trillion in transition financing from developed markets if they are to meet the requirements. climate goals
According to a report, India will need investments worth $12.4 trillion, almost half of US GDP, from developed nations and investors to help its economy transform. move to net-zero carbon emissions by 2060.
A study of Standard Chartered Plc.
Eight emerging markets – India, China, Indonesia, Kenya, South Africa, UAE, Nigeria and South Africa – will need $94.8 trillion in transition financing from developed markets if they are to meet the requirements. climate goals without affecting citizens’ cost of living, report speak. Calculations show that China alone will need $35.1 trillion.
Developing economies have raised concerns about richer nations failing to meet their $100 billion climate financing pledge, made in Paris in 2015. India has sought to 1 trillion dollars in funding from developed countries to help reach the net-free target by 2070, during the global climate talks in November.
If India’s financial needs are provided by developed markets, household spending in the country’s economy could increase by $7.9 trillion. Instead, if India were to cover the transition costs on its own, average Indian household spending could drop by as much as $5.8 trillion, according to the report.
The study recommends a combination of combined financing or public and private sector spending to subsidize capital expenditures to reduce investment risk, along with sovereign green bond issuance by governments. emerging markets as possible solutions to close the climate change financing gap.
“If developed markets fail to channel net investment into emerging markets while making their own transitions, there will be devastating effects on the planet,” the report said. .
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