Geneva, Switzerland - A report by the World Economic Forum in partnership with Accenture highlights the need for $13.5 trillion in investment by 2050.
This investment aims to transition to a carbon-neutral global economy, focusing on key sectors such as manufacturing, energy, and transportation.
Why It Matters:
Transitioning to a sustainable, carbon-neutral economy is critical to addressing global climate challenges.
The report details the financial and technological steps needed to achieve this goal.
The Key Points
- The Net-Zero Industry Tracker 2023 report examines the progress of eight primary fossil fuel-dependent industries, including steel, cement, and oil, and toward net-zero emissions.
- The report identifies significant decarbonization challenges within these sectors regarding technological advancement and financial investment.
- It highlights investments in clean energy, hydrogen production, and CCUS technologies as critical to achieving these goals.
Roberto Bocca of the World Economic Forum notes the importance of reducing emissions in these key sectors, which account for 40% of global greenhouse gas emissions.
He points to the need for infrastructure investment and policy frameworks that support deploying low-emission technologies.
The report estimates an investment requirement of $13.5 trillion, focusing on clean energy generation such as solar and wind, hydrogen production technologies, and carbon transport and storage.
Presents a framework for assessing emissions drivers and enablers, with industry-specific scorecards and opportunities for cross-sector collaboration.
The 2023 edition of the report expands its focus to include the transportation sector.
Research and development:
The report highlights the need for collaborative research and development to bring critical technologies to commercial viability beyond 2030, including innovations in technology substitution, process efficiency, and electrification.
The report addresses the challenges of financing high-risk projects and identifies the role of institutional investors and banks in providing the necessary capital linked to emissions targets.
It suggests ways to adapt financial models to different industry and regional needs.
Muqsit Ashraf of Accenture Strategy highlights the critical role of public-private collaboration in the energy transition and advocates for the expansion and innovation of clean energy and energy efficiency technologies.