As for green bonds, the figure is only 8% excluding China, and 22% with China. With the right incentives and policies, EMEs could make a substantial contribution to mitigation efforts. Also, given the current initial conditions, any amount invested in climate change mitigation in EMs and LDC can have a larger decarbonization impact and thus a larger positive externality than in developed countries.
A dollar invested in emerging markets and LDCs can have a higher mitigation potential, thus it makes sense to create the conditions for such investments to be made. It would be unfortunate if investments are not done for cost of funding reasons. According to a recent IMF paper many of the world’s lowest-cost mitigation opportunities exist in emerging and developing economies.