A new report of the International Finance Corporation, a member of the World Bank Group, states that South Asia’s ambitious plans to meet its climate targets under the Paris Agreement represents USD 3.4 trillion worth of investment opportunities by 2030.
The report states, bankable projects and an attractive investment climate are needed to unlock private investments at the required scale.Creating these conditions will require strong political leadership and continued, consistent, and clear signals to provide certainty to companies and investors.
The report identifies USD 18.4 billion of climate investment opportunities in Sri Lanka.
The areas identified in the report includes USD 2.3 billion for renewable energy, USD 190 million for large hydro, USD 8.4 billion for green buildings, USD 326 million for transport infrastructure, USD 3.5 billion for municipal solid waste, USD 2.7 billion for climate smart urban water and USD 964 million for climate smart agriculture.
An initiative the report has identified is a public private partnership to develop a light rail transit system to cover Colombo and its suburbs to cater for anticipated growing transport demand, and encourage a shift from private to public transport.
The report goes on to say, fiscal incentives to date have not fully overcome perceived political risks and institutional legal and regulatory constraints, which have limited investment.
As Sri Lanka pursues deeper integration with the global economy through export-oriented production, opportunities for scaling up private investment and attracting greater foreign investment will open up.