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ESG & Investing

How Investors Can Cash In on a Green Tech Boom in Emerging Markets

More than 80% of investments that cut emissions are funded by the private sector in rich countries, says Avinash Persaud, special adviser to the president of the Inter-American Development Bank. “But it’s not happening in developing countries.”

A solar panel installation in progress on a nursery in the Chapeu Mangueira favela in Rio de Janeiro, Brazil in March 2023.

Photographer: Lucas Landau/Bloomberg

Global investment in clean energy hit a record $2 trillion last year, according to BloombergNEF, but developing countries only see a sliver of that funding. Private investors are wary of unfamiliar markets, currency risks, and perceived instability.

More than 80% of investments that cut emissions are funded by the private sector in rich countries, says Avinash Persaud, special adviser to president of the Inter-American Development Bank. “But it's not happening in developing countries.”