The global investment slump could cause cross-border investment in climate change mitigation and adaptation to fall in 2022, says a new report released by the United Nations Conference on Trade and Development (UNCTAD).
Released ahead of the UN climate change conference COP27, the report points to a bleak outlook for global foreign direct investment (FDI) in 2022 and shows the number of new investment projects falling in most sectors, especially those aimed at combating climate change.
Between January and September 2022, 7% and 12% fewer new projects were announced in the mitigation and adaptation sectors, respectively, in stark contrast to the strong acceleration of the previous year. Mitigation projects accounted for 94% of international climate investment, while adaptation projects continue to lag far behind, the report said.
Most mitigation investments are in renewable energy and to a lesser extent in various energy efficiency projects, she added.
The developed economies accounted for two-thirds of international project financing and greenfield investments in renewable energy. While Europe alone accounted for more than half of the renewable energy projects, with more than 700 in the first three quarters of 2022, North America and the developing countries of Asia (including India) each attracted about 200 projects, the report said . Latin America and the Caribbean and Africa had about 150 and 100, respectively.
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