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IFC estimates green investment potential to reach $200 billion by 2030
As the world grows ever more aware about the looming climate crisis, a newly released report points to investing in green development as a potentially lucrative solution.
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A small garden leads to a building at the Public Works and Housing (PUPR) compound in Kebayoran Baru, South Jakarta. The Green Building Council Indonesia (GBCI) has certified the building as environmentally friendly. (Kompas.com/-)
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nvestment in green development is expected to see a significant increase in the next 10 years, thanks to regulatory support from the government and financial authorities.
The International Finance Corporation (IFC), a member of the World Bank that finances private-sector development, estimates that investment potential in green development will reach about US$200 billion between 2020 and 2030.
IFC principal industry specialist William Beloe said on Dec. 6 in Jakarta that the $200 billion investment potential would come from both residential and commercial property at a 3:1 ratio.
Beloe said that investment potential in green development would account for 30 percent of all green financing opportunities in Indonesia, including sectors such as renewable energy and electric vehicles, and was expected to reach $700 billion between 2019 and 2030.
According to the IFC’s report titled "Green Buildings: A Financial and Policy Blueprint for Emerging Markets", total investment potential in green development in emerging markets was expected to reach $24.7 trillion in the next 10 years. Of this figure, about $15.7 trillion would be in residential property and the other $9 trillion in commercial property.
Speaking on the same occasion, IFC East Asia green building program lead Sandra Pranoto said that the climate investment potential in Jakarta alone was expected to reach $30 billion during the same period, more than half of which ($16 billion) would be in green building.
In addition to Jakarta, green development would also increase sharply in other cities like Bandung in West Java and Semarang in Central Java, due to local governments issuing environmentally friendly regulations.
