Istanbul, Turkey, November 1, 2013—IFC,
a member of the World Bank Group, today published proprietary research
highlighting up to $1 trillion of investment potential in renewable energy,
resource efficiency, and climate change adaptation across Emerging Europe,
Central Asia, and the Middle East and North Africa (EMENA).
Produced in collaboration with A.T. Kearney,
the global management consulting firm, and Eco Ltd, sustainable energy
sector specialists, the report, Investment Potential in EMENA, has
been released in conjunction with this week’s Climate Business Forum,
organized by the Financial Times and IFC.
The IFC report covers 49 countries and
assesses the potential for climate-smart investment in a region facing
unprecedented increases in energy demand, population growth, and urbanization,
as well as an acute need for improved infrastructure for more efficient
industry, transport, and utilities.
“Major investment is needed in the coming
decades to meet the demands of emerging economies and much of that investment
will come from the private sector,” said Dimitris Tsitsiragos,
IFC Vice President for Europe, Middle East and North Africa. “This report
highlights the tremendous potential for climate smart investments across
sectors and countries in emerging Europe, Central Asia, and the Middle
East and North Africa, and shows that many businesses are already successfully
investing in climate-smart business.”
According to the report, IFC estimates:
line with the World Bank Group’s growing strategic emphasis on climate
change, IFC is increasingly focused on private sector investment in climate-smart
business with a goal to invest $3 billion a year globally in climate-smart
projects by 2015 and to tie at least 20 percent of long-term financing
directly to climate change. IFC in EMENA invested $2.5 billion in climate-smart
business in the last four years.
- A conservative investment potential
of $640 billion to 2020 across the region including: $270 billion in
renewable energy generation, rehabilitation of power infrastructure, and
improved transmission and distribution; $240 billion in energy efficiency
in the commercial and consumer sectors, via building insulation, appliance
upgrades, lighting, and water and space heating; $60 billion in cement,
metals, and manufacturing, via improved industrial processes and equipment
upgrades; $70 billion in improved water usage, including for power.
- The investment potential increases
to $1 trillion factoring in reductions in energy-related subsidies
and ambitious and consistent public incentive schemes including funds,
tax exemptions, feed-in tariffs, and mandatory efficiency standards.
- The greatest potential is in Russia,
Turkey, Ukraine, and Pakistan, but opportunities exist across the region.
- Turkey’s climate-smart business
investment potential is over $89 billion with energy generation accounting
for almost $42 billion, of which $22 billion is in renewables. Potential
in industrial and consumer energy efficiency is estimated at over $4.5
and $30 billion respectively.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.