The World Bank in association with the Carbon Trust has identified a potential $1.6 trillion market opportunity in clean technology, with small and medium firms in developing nations in line to benefit.
The new report titled “Building Competitive Green Industries: the Climate and Clean Technology Opportunity for Developing Countries” identifies China, Latin America and Sub-Saharan Africa as the top three markets in the developing world forclean technology SMEs, with an expected market size of $415 billion, $349 billion, and $235 billion respectively. The most promising opportunities are in wastewater treatment, onshore wind, solar panels, electric vehicles, and small hydro.
Data analysis and case studies from Kenya and India show how these market opportunities have also important social impacts. In Kenya, for instance, the roughly 80 per cent of the population not served by the electricity grid represents a vast market for new climate and clean technology solutions. Local entrepreneurs and SMEs are deriving innovative solutions in solar and biogas technologies.
The report highlights how clean technology jobs compare favourably to jobs in other sectors, requiring more skill and delivering better pay and on-the-job safety.
To help countries unlock this environmental and economic potential, the report, for which the Carbon Trust provided the technical analysis, identified a set of actions that can be implemented to build local green industries.
The study provides a range of practical instruments to support SMEs in key areas such as market development, innovative finance, entrepreneurship and business acceleration, technology development, and the legal and regulatory framework. These policy considerations are illustrated through case studies of national programs in South Korea, India, Thailand, and Ethiopia.