Key Points
- Dozens of green technologies are now lower cost than incumbent technologies across emerging markets, creating current investment opportunities and pathways for green development that is cheaper than traditional carbon-intensive alternatives.
- New green investments could potentially reach $330b per year over the next decade.
- Scaling up investment in these technologies will be crucial to delivering a just green transition that improves incomes, health, and food security (among other development outcomes).
This collaborative report by LeapFrog Investments, Temasek and CGAP shares new research that highlights the commercial impetus to accelerate a wave of green investment into emerging markets. With a focus on commercially viable green solutions, the report outlines four key sectors (the built environment, energy, mobility, and agriculture) where private capital could play a transformative role in the lives of emerging consumers and the global race to net zero.
Emerging markets can leapfrog a generation of polluting, expensive technology, and infrastructure, creating enormous prosperity for consumers, as well as tens of millions of new jobs. Some green technologies in emerging markets now offer a ‘green discount’, where cost of green goods and services is out-competing the incumbent carbon-intensive technologies by 14-75%. Yet, despite now being cheaper, these solutions are not yet widely adopted. With examples across Africa, India and South-East Asia, the Investor Roadmap to Inclusive Green Growth details what the top investable opportunities are in emerging markets for global investors and how capital can be deployed into commercially attractive investments that support a just green transition.