Matchmaking Private Financing and Green Infrastructure

First appeared in Policy Center for the New South (July 7, 2021)

The world faces a huge shortfall in infrastructure investment relative to its needs. With some exceptions, such as China, this deficit is higher in emerging and developing countries.

The G20 Infrastructure Investor Dialogue estimated that the volume of global infrastructure investment needed by 2040 will be $81 trillion, of which $53 trillion will be needed in non-advanced countries. The Dialogue projected a gap—in other words, a shortfall relative to projected investment needs today—of around $15 trillion globally, of which $10 trillion is in emerging economies (Figure 1, left-hand panel). The World Bank has estimated that for emerging and developing economies to meet the Millennium Development Goals set for 2030, their investment in infrastructure would need to correspond to 4.5% of their annual GDP (Graph 1, right-hand panel).

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