UN calls for renewable energy support in developing countries

The World Investment Report 2023 shows the importance of further investment for the clean energy transition and to help them attract international private investment.

Commissioned by the United Nations Conference on Trade and Development (UNCTAD), it says international investment in renewable energy has tripled since the 2015 Paris Agreement. The sustainable finance market reached US$5.8trln in 2022, yet the UNCTAD finds that around US$1.7trln is needed for renewable energy annually, while foreign direct investment (FDI) in clean energy is only US$544bln.

UNCTAD have also stressed the importance of lowering country risk ratings to ensure debt relief for developing countries and attracting investment. Developing countries face an investment gap of US$2trln annually for the energy transition, out of a US$4trln annual funding gap for the Sustainable Development Goals.

This comes as global FDI declined to US$1.3trln in 2022, a reduction of 12% from 2021, with COVID-19 and the War in Ukraine affecting the figures.