According to India’s G20 Sherpa Amitabh Kant, advanced and developing market nations will need $5–6 trillion yearly to accomplish sustainable development (SDG) and energy transition goals, which may generate $90 trillion in commercial potential.

However, he asserted that in order to take advantage of the significant financial opportunities that would materialize in the ensuing years, developing market economies must step up their project preparation. “If emerging markets have to provide most of the growth, the global financial architecture and the flow of resources have to be altered to suit this to provide greater impetus to this group,” Kant said after a G20 meeting of 40 leading global thinkers organised by Niti Aayog here. According to the International Monetary Fund, 80% of global growth is going to come from emerging markets.

Kant said the global financial architecture has to support countries to address challenges with regard to the cost of living crisis, the SDG goals, post-Covid era impact, etc.

“The international financial architecture will have to be adequately tuned to ensure that resources flow from the developed world to the emerging markets and not vice versa as is happening right now,” he said.

The International Energy Agency has estimated the need for $4.5 trillion annually for energy transition by 2030. To address urgent global challenges and SDGs, the G20 Independent Expert Group on MDB (multilateral development banks) reforms has estimated an additional spending requirement of $3 trillion per year by 2030, a minuscule of which flows through MDBs and the rest from private sources.

“It’s important to understand that if the world is transitioning to a clean economy (via an annual investment of $5-6 trillion), that will be providing business opportunities of almost $90 trillion,” Kant said. He said the world is not short of resources as almost $350 trillion are available in the world today for investments. In fact, $150 trillion is available with pension funds and institutional investors, he said.

For green and sustainable growth in India, states will play a heavy role as all the funding and projects would finally be spread all over the country, Niti Aayog CEO BVR. Subrahmanyam said, adding that the think-tank will work closely with states in this regard.

(with input source)