Emerging Economies Gear Up for Low-Carbon Future: USD 2.2 Trillion Needed by 2030

A new study highlights the climate finance needs of nine G20 emerging economies, estimating a requirement of USD 2.2 trillion to transition to low-carbon technologies by 2030. The report emphasizes the economic feasibility with international cooperation and identifies major funding needs in steel, cement, and road transport sectors.

A recent study reveals that nine major emerging economies of the G20, including India and China, require USD 2.2 trillion to transition to a low-carbon future by 2030. This amount represents about 0.6% of their GDP on average, showing the financial feasibility of this transformation.

The report, titled 'Climate Finance Needs of Nine G20 Emerging Market Economies: Well Within Reach', challenges the notion that transitioning costs are prohibitive for these economies. The countries studied—Argentina, Brazil, China, India, Indonesia, Mexico, Russia, South Africa, and Türkiye—collectively represent a significant portion of the G20's emerging markets.

The study estimates these nations need USD 255 billion annually to decarbonize industries like steel and cement, critical sectors in reducing carbon emissions. The report stresses the need for cheaper financing and international collaboration to make this transition economically viable.

(With inputs from agencies.)