Private sector must cover 90% of climate investment in EMs, says IMF
The private sector needs to cover 90 per cent of climate mitigation investment needs in emerging market and developing economies (EMDEs) excluding China, as public investment growth is projected to be limited, the IMF said in its latest Global Financial Stability Report.
"Yet, EMDEs face significant challenges in attracting private capital. Many have sub-investment-grade credit ratings, limiting their potential investor base and resulting in high financing costs. Even investment-grade-rated EMDEs may find it difficult to attract climate private finance due to several barriers," it added.
Including China, private sector contribution could be 80 per cent of the total climate fund requirement, as China has significant domestic capability to generate such funds, th...