According to the arm of the IFC World Bank, there are opportunities for 29.4 trillion US dollars of climate-related investments in sectors ranging from renewable energy to electric vehicles
According to the forecasts and studies of the International Finance Corporation (IFC), a private equity and venture capital division of the World Bank Group, 60 percent of the area that should be urban throughout the world by 2030 has yet to be built . For this reason, there will be opportunities for 29.4 trillion US dollars of climate-related investments in sectors ranging from renewable energy to electric vehicles.
Vivek Pathak, regional director for East Asia and the Pacific department at International Finance Corporation, said: “The whole sustainable investment space has now demonstrated it is a profitable business, so this is where we think it makes sense to put capital to work”.
But not just forecasts, IFC’s investments, in fact, accounted for 36% of the US $ 23.3 billion invested in 74 countries in the 2018 fiscal year.
For example, the Tokyo-based MUFG, which is among the international banks that focus on Asean countries with total investments of $ 10 billion over the past six years, has identified 37 stocks from its climate solution database, with a capitalization minimum market share of US $ 500 million in areas where innovations are helping cities work better.
Takayoshi Futae, senior executive officer of MUFG and regional executive for Asia, said: “We are very much committed to environmental issues and our strength is in project finance,”.
The southern Chinese city of Shenzhen now boasts the world’s first all-electric public bus fleet
According to IFC’s “Climate Investment Opportunities in Cities” report, 50 million bicycle trips are made one day in Beijing and in 2030, three out of every 100 people across China should own an electric vehicle. Brexit and the ongoing US-China trade war should not pose a problem to green investments going forward.
Pathak said: “I think [US$24.9 trillion] is a high reach and in order for us to get close to that number we need to see a lot more private capital. Clearly the governments don’t have a balance sheet that is big enough,” he said. “The banking sectors in most of the countries we operate in aren’t large enough to achieve that, so we really need to mobilise a lot more institutional money from overseas“.
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