UNCTAD calls for support to close $4trn green energy investment gap in developing countries

Amid the raging energy crisis, the United Nations Conference on Trade and Development (UNCTAD) has called for urgent support for developing countries to close their $4 trillion Sustainable Development Goals gap.

UNCTAD’s World Investment Report 2023 made this known on Wednesday.

The report showed that much of the growth in international investment in renewable or green energy, which has nearly tripled since adopting the Paris Agreement in 2015, has been concentrated in developed countries.

According to the report, developing countries need renewable energy investments of about $1.7 trillion annually but attracted foreign direct investment in clean energy worth only $544 billion in 2022.

Total funding needs for the energy transition in developing countries are much larger, including investment in power grids, transmission lines, storage, and energy efficiency.

It stated that the SDGs investment gap, especially in energy, water and transport, increased to more than $4 trillion per year from $2.5 trillion in 2015.

UNCTAD Secretary-General, Rebeca Grynspan said: “a significant increase in investment in sustainable energy systems in developing countries is crucial for the world to reach climate goals by 2030.”