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IFC Sees up to $1 Trillion Climate-Related Investment Potential in EMENA


In Istanbul:
Basak ▄lgen
Phone: +90 532 3141636
E-mail: BUlgen@ifc.org

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:

  • 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.
In 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.

About IFC
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.

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