A new report from NYU Abu Dhabi’s Transition Investment Lab (TIL) reveals a growing financial gap in the Middle East, Africa, and Southern Asia (MEASA) region needed to achieve the UN’s Sustainable Development Goals (SDGs) by 2030. The annual funding shortfall has increased to nearly USD 5 trillion, up from USD 4.3 trillion last year. The report identifies intersecting economic, environmental, and geopolitical challenges as key reasons for this gap, referring to these combined issues as a “polycrisis.”
The report, titled The Great Reallocation: Mobilizing Capital for Transition Investment, was released during the Transition Investment Workshop at NYUAD. It highlights the potential for the UAE and global investors to use “transition investment” to help close the funding gap. Transition investment focuses on making investments that aim for both social and financial returns, especially in emerging markets.
One area of focus for transition investment is renewable energy. Renewable energy projects are expected to play a central role in meeting the SDGs across the MEASA region, addressing both energy access and climate action goals. The report notes that investment in renewable sources, such as solar and wind power, can help countries reduce reliance on fossil fuels, promote clean energy access, and increase energy security. These energy sources can also lower greenhouse gas emissions and support global climate targets.
The report states that MEASA has high economic growth potential but also faces serious social and environmental challenges. According to Bernardo Bortolotti, Executive Director of TIL, “the region offers a wide range of investment opportunities that could support progress toward the SDGs while still generating positive returns for investors”. He emphasized that, “despite recent disruptions, there are opportunities to maintain sustainable investment goals, especially in the MEASA region”.
Mubadala’s Head of Investment Risk, Antonio Miguel Ribeiro, commented that progress on many SDG targets has stagnated, and he sees transition investing as a way to reverse this trend and create investment opportunities in MEASA. Peter Lejre from MEASA Partners added that the region’s population and economic growth create unique investment opportunities, but underinvestment could lead to social and environmental risks with global impacts.
The Transition Investment Workshop brought together financial institutions, researchers, and policymakers to discuss ways to fund impactful projects in emerging economies focusiing primarily on clean energy sources like solar power, wind power etc.
