Emerging economies will need the private sector to help fund green infrastructure initiatives. However, about 80 percent of private infrastructure investments in emerging economies are for nonrenewable-energy and transport sectors, which are some of the highest emitters of fossil CO2. And many governments can’t afford to subsidize the private sector as they did prepandemic, due to budget constraints. Senior partner Ahmed Youssef and coauthors find that public real-estate portfolios could help governments attract private investment by offering land as equity in projects or leasing it at a discount.

Most private investment in middle- and low-income countries goes to sectors with high carbon footprints.

To read the article, see “Green infrastructure: Could public land unlock private investment?,” September 21, 2022.