Sub-Saharan Africa represents a $783bn investment opportunity—particularly for clean energy in Cote d’Ivoire, Kenya, Nigeria, and South Africa, according to a study by IFC.

Based on the national climate-change commitments and underlying policies of 21 emerging-market economies, IFC’s study identifies sectors in each region where the potential for investment is greatest. 

In the Middle East and North Africa, the total climate-investment potential for Egypt, Jordan, and Morocco is estimated at $265bn, over a third of which is for renewable-energy generation, while 55% ($146 billion) is for climate-smart buildings, transportation, and waste solutions. 

The findings show that the historic global agreement on climate change adopted in Paris last year helped open up nearly $23trn in opportunities for climate-smart investments in emerging markets between now and 2030.

“There has never been a better time than now for climate-smart investing,” said IFC Executive Vice President Philippe Le Houérou. 

“This reflects the dramatic reduction in the price of clean technologies and the rise of smart policies that are driving businesses to invest. In this context, it is important to set ambitious goals—which is why IFC has pledged to increase our climate investments to a goal of $3.5bn a year by 2020 and catalyze another $13bn through other investors,” he said. 

Since the Paris Agreement was adopted in December 2015, a total of 189 countries have submitted national plans that target aggressive growth in climate solutions—including renewable energy, low-carbon cities, energy efficiency, sustainable forest management, and climate-smart agriculture. 

These plans offer a clear roadmap for investments that will target climate-resilient infrastructure and offset higher upfront costs through efficiency gains and fuel savings. 

The report also finds that government action will be critical to take advantage in order to unlock the full scale of investment potential. 

It recommends that governments integrate national climate commitments into their development strategies and budget processes, strengthen the investment climate for climate-smart industries, and deploy public funds strategically to mobilize private capital—by reducing risk and providing project support, for example.