The zero-carbon energy transition is the solution to the 2022 energy crisis and a fundamental part of the solution to the global climate crisis. Yet, there are relatively low levels of investment in renewable energy in developing countries, hindering their achievement of the Sustainable Development Goals (SDGs) and contribution to the Paris Agreement goals.
In 2021, the Asia–Pacific region (excluding China) accounted for less than 8% of investments in energy transition technologies, Latin America and the Caribbean for less than 4%, and Africa and the Middle East for less than 2%. Annual investment in zero-carbon energy in developing economies other than China has stagnated since the Paris Agreement was signed in 2015. To put the world on track to reach net-zero emissions by 2050, annual capital spending on zero-carbon energy in developing countries must increase by more than seven times, to more than USD 1 trillion, by the end of the 2020s.
Mithatcan Aydos, Perrine Toledano, Martin D. Brauch, Ladan Mehranvar, Theodoros Iliopoulos & Sunayana Sasmal,
Scaling Investment in Renewable Energy: Roadblocks and Drivers – Executive Summary,
Available at: https://scholarship.law.columbia.edu/sustainable_investment/9