Closing the Investment Gap to Achieve Paris Agreement Goals

Fatih Yilmaz, Fahad A. Alswaina, Belaid Fateh, Mohamad Hejazi and Mari Luomi
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Mari Luomi: King Abdullah Petroleum Studies and Research Center

Discussion Papers from King Abdullah Petroleum Studies and Research Center

Abstract: This study aims to assess the alignment of global sustainable financial flows with transition investment priorities. First, we identify investment gaps based on the difference between the required annual investment to meet global net-zero emissions (NZE) targets and current investment flows. Our assessment reveals that nearly all countries must significantly accelerate their efforts, as their current investment levels fall short of what is required. Second, and perhaps more importantly, investment gaps are particularly large for non-Annex I (developing) countries. Financing these large-scale investments continues to be a major global challenge. The size of global environmental, social and governance (ESG) finance remains low. Specifically, despite their large investment gaps, developing countries receive only a minor share of global ESG funds, where access to conventional finance is already limited.

Keywords: Carbon; Carbon capture and storage; Carbon neutrality (search for similar items in EconPapers)
Pages: 35
Date: 2023-10-09
New Economics Papers: this item is included in nep-cfn, nep-ene, nep-env and nep-ifn
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https://www.kapsarc.org/research/publications/clos ... ris-agreement-goals/ First version, 2023

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Persistent link: https://EconPapers.repec.org/RePEc:prc:dpaper:ks--2023-dp19

DOI: 10.30573/KS--2023-DP19

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