Financing countries’ climate and sustainable development commitments will require global investment on an “unprecedented scale”, the report stated.
IFC estimates cumulative climate investment potential of $29.4tn in emerging market cities through 2030. Sustainable finance policies and products, like debt capital instruments, are already helping to plug this gap, by financing projects with environmental and social benefits.
Amundi emerging markets global head Yerlan Syzdykov said: “Although it is hard to assess the long-term impacts of the current crisis and there are still many challenges to scaling green bonds, momentum is building with more investors seeking to align their investment strategies with environmental considerations.
“Our research indicates that the green bond phenomenon, especially in emerging markets, shows potential signs of resilience during these unprecedented times.”