Dozens of green technologies are now lower cost than incumbent technologies across the emerging world, sparking a wave of new green investments that could potentially reach $330B per year over the next decade and spur green development, said a report on Thursday.

The Investor Roadmap for Inclusive Green Growth report, released today by LeapFrog Investments, CGAP (a global partnership housed at the World Bank), and Temasek, found technologies like electric scooters in India, rooftop solar in Kenya, and smart farming in Vietnam are already 14 percent to 75 percent cheaper than incumbent products, offering low-income consumers huge savings of as much as $500 a year.

These ‘green discounts’ have triggered a wave of sustainable investing across mobility, energy, built environment and the agriculture sectors in emerging markets, as investors place big bets on companies like Indian solar company Ola Electric and African renewable financier Sun King, hoping to scale the green champions of the future as 5 billion people in these markets rise into prosperity.

Meanwhile, analysis across mobility, energy, agriculture, and built environment sectors in emerging markets reveals dozens of investible opportunities where the price of green goods and services is out-competing incumbent dirty technologies by up to 75 percent.

The top four investible opportunities include rooftop solar, efficient cooktops, two-three wheelers electric vehicles (EVs), and smart farming.

According to the report, around $330 billion a year, or $3.3 trillion by 2030, is needed to deliver a green transition across these four sectors in South Asia, Southeast Asia and Africa.

It is noted that current investments account for about 5 percent of this annual total, leaving a significant funding gap and investment opportunity.

It is also noted that across the last ten years, sustainable deal funding across these four segments has grown on average 22 percent to 47 percent per annum, and continues to rise.

The report also revealed that without a green transition in emerging markets, rising incomes across Southeast Asia, South Asia and Africa will translate into dramatic rises in emissions.

If developed markets meet <2 degree scenarios, but new investment doesn’t flow to emerging markets, then Africa, South Asia and Southeast Asia could account for 73 percent of global emissions by 2050, up from 25 percent today, said the report.

To ensure a just green transition for those who have contributed the least to the climate crisis, the report highlighted that green technologies and practices need to be both affordable and readily available for low-income consumers.

These investable opportunities show emerging markets can leapfrog a generation of polluting, expensive technology and infrastructure with clean alternatives, and this can improve incomes, health, and food security.

LeapFrog is a firm invests in healthcare, financial services and climate solutions businesses in high-growth global markets.

Its companies deliver distinctive impact and robust returns, growing on average 24 per cent a year.

LeapFrog companies now reach 492 million people in 30 countries. The firm has raised billions of dollars from global institutional investors, including a recent $500 million commitment by Temasek to LeapFrog and its growth equity funds.

CGAP is a global partnership of more than 30 leading development organizations dedicated to advancing the lives of people living in poverty, especially women, through financial inclusion.

The firm is housed at the World Bank and operates like a thinktank and innovation lab.

Temasek is a global investment company with a net portfolio value $287 billion as at March 31, 2023.

Headquartered in Singapore, it has 13 offices in nine countries around the world: Beijing, Hanoi, Mumbai, Shanghai, Shenzhen, and Singapore in Asia; and London, Brussels, Paris, New York, San Francisco, Washington DC, and Mexico City outside Asia. 

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