The International Monetary Fund says Nigeria and other emerging economies will need about $2tn annually by 2030 to achieve the transition to net-zero emissions by 2050.
The global lender said this in a new report titled ‘Emerging economies need much more private financing for climate transition.’
According to the report, achieving the transition to net-zero emissions by 2050 requires substantial climate mitigation investment in emerging markets and developing economies, which currently emit around two-thirds of greenhouse gases.
The report read partly, “These countries will need about $2tn annually by 2030 to reach that ambitious goal, according to the International Energy Agency, with the majority of that funding flowing into the energy industry. This is a fivefold increase from the current $400bn of climate investments planned over the next seven years.
“We project that growth in public investment, however, will be limited, and that the private sector will therefore need to make a major contribution toward the large climate investment needs for emerging markets and developing economies. The private sector will need to supply about 80 per cent of the required investment, and this share rises to 90 per cent when China is excluded, as shown in an analytical chapter of our latest Global Financial Stability Report.”