Food and agriculture: International private investment, 2021
Investment in: • Agriculture • Research • Rural development
-35%
Renewable energy: International private investment, 2021
• Installations
for renewable energy
generation, all sources
+2%
Source for all table figures: UNCTAD
leverage its own commitments by joining forces with other development partners. The MDBs are leading the effort to provide climate financing. According to the latest joint report (see page 33), published in October 2022, international financial institutions provided US$51 billion in climate finance to low- and middle-income economies last year, while mobilizing US$40 billion private sector funding globally. This exceeded the 2025 climate finance goals. However, compared with global needs this was merely the proverbial drop
in the ocean. The IEA estimates that US$4.2 trillion are needed in global investment by 2030 to achieve the 1.5°C Paris climate target. No less than US$3 trillion would have to come from the private sector, “mobilized by public policies that create incentives, set appropriate regulatory frameworks and send market signals,” the IEA says. So far, this is not sufficiently happening. This means that we have to revisit our approach. The successful proliferation of solar photovoltaic power can serve as an example: The
combination of prudent regulatory reforms and technological advances turned solar into a highly competitive source of energy. The OPEC Fund supported, for example, the Kom Ombo solar plant in Egypt and the “Seven Sisters” project in Jordan. Both projects demonstrate that if the right incentives are in place and provide investors with sufficient confidence that their investments will generate a satisfactory return, the private sector can be mobilized. Given the enormous needs, climate investments are a
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