Education: International private investment, 2021
• Investment
in education infrastructure,
e.g. new schools
+17%
Infrastructure: International private investment, 2021 project numbers compared to pre-pandemic levels
drivers of development. Without energy, it is impossible to provide
we need comprehensive answers and multidimensional approaches. The first one is energy efficiency, with measures from insulation to smart meters offering the potential of achieving more than 40 percent of energy-related emissions cuts, according to the International Energy Agency (IEA). This still leaves us with almost 60 percent, and – due to a growing world population – rising demand for energy. Alternative sources exist and there is progress with their utilization, but it comes at a price: A recent IMF paper identifies financing needs between US$3 to $6 trillion per year until 2050 to reach the Paris goals. To put this into context: global climate finance currently amounts to about US$630 billion annually – “and very little goes to developing countries,” as the IMF notes. The OPEC Fund’s Climate Action Plan aims to make a sizeable contribution
healthcare, education or clean water. It is impossible to strengthen food security and eliminate hunger. Ultimately, it is impossible to eradicate poverty without energy. The fight against energy poverty and climate action are not opposites, but two sides of the same coin called development. These are the challenges we have to address: According to the World Bank, an estimated 750 million people around the world do not have access to electricity. At the same time, the world's population is expected to increase by about 2 billion in the next 30 years, from 8 billion today to 9.7 billion in 2050. Coincidentally, 2050 is also the year when the world must achieve net zero in greenhouse gas emissions to reach the 1.5°C target of the Paris Agreement. This means: We are in a bind. More people = more energy = more emissions. This is a vicious circle that must be broken. For this,
-11%
• Transport
infrastructure • Power generation • Power distribution (except renewables) • Telecommunication
Source for all table figures: UNCTAD
10
PHOTO: OPEC Fund/Julia Zacharenkova
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