EARTH DAY 2023: Build a Sustainable Future
From cement to electronics, emerging markets are the world’s workshops and investors can play a key role in supporting their move to a sustainable footing so we can realize a low-carbon future.
The Investment Need
"INVEST IN OUR PLANET is the theme of this year’s Earth Day. Emerging markets, in our view, are key to implementing this message. From cement to electronics, emerging markets are the world’s workshops and they need to move to a sustainable footing so we can realize a low-carbon future. The good news is the potential work and wealth this shift will create is a win-win for citizens, employers and investors.
Timing is everything and there’s been no better time to invest in our planet."
From billion to trillion
That's the increase in annual clean energy spending that emerging and developing countries will need to make by 2030 in order to meet the world's 2050 net zero goals
Source: IEA, 2021
Emerging Markets Are Transitioning to Cleaner Sectors
Regional annual investment in energy transition, defined as money spent to deploy clean technologies such as sustainable energy, electric vehicles, hydrogen and carbon capture. Asia Pacific now accounts for more than half of global energy transition investment. In 2022, it was both the largest region for investment and the region with the highest growth.
Source: BloombergNEF, as of Feb 2023.
AMER - North, Central, South America; EMEA - Europe, Middle-East, Africa; APAC - Asia and Pacific
Powering the Shift
New-build solar-energy plants are environmentally sustainable and, despite inflationary increases in the cost of materials, freight, fuel and labor, are a significantly lower-cost source of power compared with new coal and gas stations.
Coal-fired plant energy cost (MWh)
Gas-fired plant energy cost (MWh)
Solar-powered plant energy cost (MWh)
Note - Average energy cost/per new plant. Source: BloombergNEF,2022