Workers assemble a BMW car at Gaya Motor Plant in Jakarta, Indonesia, June 6, 2023. (Xinhua/Agung Kuncahya B.)
Industries struggling with supply chain challenges, including electronics, semiconductors, automotive and machinery, saw a surge in projects, while investment in digital economy sectors slowed, UNCTAD said in its World Investment Report 2023.
GENEVA, July 5 (Xinhua) -- After a strong rebound in 2021, global foreign direct investment (FDI) fell by 12 percent in 2022 to 1.3 trillion U.S. dollars, the United Nations Conference on Trade and Development (UNCTAD) said on Wednesday.
Overlapping global crises, such as the military conflict between Russia and Ukraine, high food and energy prices, and soaring public debt, mainly caused the decrease, the UNCTAD said in its World Investment Report 2023.
The decline was felt mostly in developed economies, where FDI fell by 37 percent to 378 billion U.S. dollars. On a positive note, greenfield investment project announcements were up 15 percent in 2022, growing in most regions and sectors, the report said.
Industries struggling with supply chain challenges, including electronics, semiconductors, automotive and machinery, saw a surge in projects, while investment in digital economy sectors slowed, it said.
The report revealed a widening annual investment deficit that developing countries face as they work to achieve the United Nations (UN) Sustainable Development Goals (SDGs) by 2030. The gap is now about 4 trillion U.S. dollars per year - up from 2.5 trillion U.S. dollars in 2015, when the SDGs were adopted.
Wind turbines are pictured in Brandenburg, Germany, Sept. 15, 2022. (Xinhua/Ren Pengfei)
International investment in renewable energy generation, including solar and wind, grew by 8 percent, slower than the 50 percent growth recorded in 2021. Notably, projects announced in battery manufacturing tripled to more than 100 billion U.S. dollars in 2022, the report added.
Although renewable energy investments have nearly tripled since the adoption of the Paris Agreement in 2015, most of the money has gone to developed countries. While developing countries need about 1.7 trillion U.S. dollars each year in renewable energy investments -- including for power grids, transmission lines and storage -- they only attracted about 544 billion U.S. dollars in 2022, the report said.
A staff member checks the condition of the solar panels at a floating commercial solar power plant in Chapainawabganj district, some 302 km northwest of the capital Dhaka, Bangladesh, June 5, 2023. (Xinhua)
The report showed that more than 30 developing countries still have not registered a large international investment project in renewables. Although most developing countries have set targets for transitioning to sustainable energy sources, only one-third of them have turned the targets into information on investment requirements.
The report called for urgent support to developing countries to enable them to attract significantly more investment for their transition to clean energy.
It proposed a compact setting out priority actions, ranging from financing mechanisms to investment policies, to ensure sustainable energy for all. ■
