Bridging green infrastructure and finance by Karim El Aynaoui, Otaviano Canuto published by CEPR (10/2022)
“1 Green infrastructure gaps in emerging market and developing countries
The world faces a huge shortage of infrastructure investment relative to its needs. With few exceptions, such as China, this shortage is even greater in non-advanced countries. The G20 Infrastructure Investors Dialogue estimated the volume of global infrastructure investment needed by 2040 to be $81 trillion, $53 trillion of which is needed in nonadvanced countries (OECD 2020). The Dialogue projected a gap – in other words, a shortfall in relation to the investments foreseen today – of around $15 trillion worldwide, $10 trillion of which is in non-advanced economies. Julie Rozenberg and Marianne Fei from the World Bank have estimated that, for emerging market and developing economies (EMDEs) to reach the Millennium Development Goals set for 2030, their infrastructure investment needs would have to correspond to 4.5% of their annual GDPs (Rozenberg and Fay 2019). Gross spending on sustainable infrastructure in EMDEs, excluding China, corresponded to 3.5% of GDP in 2019, and needs to ramp up to 4.8% and 5.7%, respectively, in 2025 and 2030 (Bhattacharya et al. 2022)…”
