Globally, a cadre of sophisticated investors recognize the opportunity and value proposition of investing in sustainable infrastructure in emerging markets (EMs). This aligns with investment diversification strategies and key sustainability themes such as the energy transition.

EMs steward approximately 30 percent of the world’s natural capital, 40 percent of the minerals required for the energy transition, 50 percent of the global workforce and 85 percent of the world’s population. According to the International Energy Agency (IEA), 48 percent of clean energy spending globally in 2022 was in EMs, with China alone contributing 32 percent of a total of $1.6 trillion spent on renewables in 2022.

Although private infrastructure investment has quadrupled during the past decade, the capital has mostly stayed in North America and Europe. Many investors are still underinvested in emerging markets due to a broad perception of heightened geopolitical and investment risk. Gi