Poorest countries ‘lag behind in clean energy investment’

Nearly $67 billion less was invested into clean energy in emerging markets, new report suggests

Big Zero Report 2022

Developing countries are lagging behind in clean energy investments compared to the money spent on wealthier countries.

The latest study by BloombergNEF (BNEF) found that investors poured $67 billion (£50.5bn) less into clean energy in emerging markets last year than they did into developed countries.

The data shows in 2020, a record-breaking year for ‘green’ investments, developed nations received $262 billion (£197bn), or 57%, of the total global energy transition funds.

In contrast, developing economies received $195 billion (£147bn), or 43%.

The authors of the report noted in 2019, emerging markets accounted for a slight majority of such funds received and in 2017, some 59% of such investment went to developing economies.

The research also suggests energy transition investment in less developed markets fell 10% from 2019-2020, as financiers deployed more funds in traditionally lower-risk OECD countries.

Luiza Demôro, Head of Energy Transitions Research at BNEF and Lead Author of the survey, said: “Based on total funds deployed in 2020, enthusiasm for clean energy technologies appears to be at an all-time high.

“But Investors; willingness to invest in poorer parts of the world really seemed to stall in 2020 as the pandemic took hold.”

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