Reconciling private finance and green infrastructure

First appeared on The New South Politics Center (July 7, 2021)

The world is facing an enormous shortfall in infrastructure investment compared to its needs. With a few exceptions, such as China, this shortage is greater in emerging and developing countries.

The G20 Infrastructure Investors Dialogue estimated the global investment in infrastructure required by 2040 at $81 trillion, of which $53 trillion will be needed in underdeveloped countries. The dialogue projected a gap—in other words, a shortage in terms of today’s projected investment needs—of about $15 trillion globally, of which $10 trillion is in emerging economies (Figure 1, left panel). The World Bank has estimated that for emerging and developing economies to reach the 2030 Millennium Development Goals, their infrastructure investment must correspond to 4.5% of annual GDP (Figure 1, right panel).

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