Investment opportunities hiding in plain sight ?
Sustainability, Strategy & Finance

Investment opportunities hiding in plain sight ?

A $330bn/year green investment opportunity. What is not to like. So what is the catch ? Yes, it's in emerging markets. But the real challenge is that we need to develop new business models.


A $330bn/year green investment opportunity. What is not to like. So what is the catch ? Yes, it's in emerging markets. But that is where the long term future opportunity really lies. So that should be a long term positive, not a negative.

More importantly, the opportunities are not where you might at first think. We know about decarbonising electricity generation using renewables. And we know about EV cars and vans.

To find the 'new' opportunities we need to look in different places. Places where the cost of the new technology is already lower than the traditional incumbent. This covers a range of technologies from electric scooters in India, through rooftop solar in Kenya, efficient cook tops in Nigeria, and smart farming in Vietnam. Discounts to the traditional alternatives range from 14% in smart farming through to a massive 75% in rooftop solar.

And the catch - we need new business models. The traditional approach based around selling hardware, and routes to market, needs rethinking. We need to find ways of overcoming the non cost barriers.



The details

The $330bn/year green investment opportunity in emerging markets

According to a report prepared by Leapfrog Investments for the CGAP and Temasek, dozens of green technologies are actually already lower cost than incumbent technologies across the emerging world. Technologies that are already cheaper range from electric scooters in India, through rooftop solar in Kenya, efficient cook tops in Nigeria, and smart farming in Vietnam. Discounts to the traditional alternatives range from 14% in smart farming through to a massive 75% in rooftop solar.

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