Developing countries face an investment gap of $2.2 trillion annually for the energy transition, out of a $4 trillion annual funding gap for the Sustainable Development Goals, according to this new report by the United Nations Conference on Trade and Development (UNCTAD).

UNCTAD’s World Investment Report 2023 reveals a widening annual investment deficit that developing countries face as they work to achieve the Sustainable Development Goals (SDGs) by 2030. The gap is now about $4 trillion per year – up from $2.5 trillion in 2015 when the SDGs were adopted. The report shows that global foreign direct investment (FDI) fell 12% in 2022 and analyses how investment policy and capital market trends impact investment in the SDGs, particularly in clean energy. It highlights that developing countries need renewable energy investments of about $1.7 trillion each year but attracted only $544 billion in clean energy FDI in 2022.