Source page: McKinsey & Company
Commentary
Land leverage
Sustainability | Public Sector
November 9, 2022 – 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.
To read the article, see “Green infrastructure: Could public land unlock private investment?,” September 21, 2022.
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Visual form
Sector allocation chart.
Layout / body structure
The chart is laid out as an investment-allocation comparison, with the reader moving through where private infrastructure capital currently goes and then seeing how that pattern conflicts with lower-carbon needs. The reading order is from today’s allocation mix to the missed green-infrastructure opportunity.
What is being compared
It compares private infrastructure investment in middle- and low-income countries across sectors, especially the heavy share going to nonrenewable-energy and transport versus greener infrastructure uses.
Measurement system
The core measure is the share of private investment by sector, so the reader tracks how infrastructure capital is distributed across categories with different carbon footprints.
Visible structure inside the graphic
The internal pieces are the sector categories and their corresponding shares of investment. The arrangement highlights the large blocks tied to higher-carbon sectors so the imbalance is easy to see.
Main takeaway from the visual
The page shows that private capital is flowing most heavily into sectors with larger carbon footprints, which makes green infrastructure hard to scale without a different financing unlock. The chart frames land and public enabling tools as ways to redirect that pattern.
Key standout values or extremes
The headline number is that about 80 percent of private infrastructure investment in emerging economies goes to nonrenewable-energy and transport sectors. That concentration is the main numeric signal on the page.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.