By Adaobi Rhema Oguejiofor
The International Monetary Fund (IMF)
has said that Nigeria and other emerging economies will need about $2 trillion annually by 2030 in order to achieve the ambition of transitioning to net-zero emissions by 2050.
The financial Agency stated this in its 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.
Quoting the International Energy Agency (IEA), the report stated that the countries will need about $2 trillion annually by 2030 to reach that ambitious goal, with the majority of that funding flowing into the energy industry, which is a fivefold increase from the current $400 billion of climate investments planned over the next seven years.
“It is projected 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 market and developing economies.
“The private sector will need to supply about 80 percent of the required investment, and this share rises to 90 percent when China is excluded, as shown in an analytical chapter of our latest Global Financial Stability Report,” the report read in part.