NET ZERO 2050 100 TRILLION $ ?
The global economy is currently behind schedule in reaching its 2050 net zero goals and complying with the Paris climate goal of limiting global warming by at least 2 degrees.
The joint report with Fathom Consulting found that $100trillion, which is 15 per cent of total forecast global capital expenditure over the next 30 years, will need be needed for the world to catch up.
Wider policy action is needed to accelerate the pace of decarbonisation and there have been calls for a global carbon tax, but we think a coordinated approach is unlikely, so other incentives must be considered.
‘Governments need to encourage and incentivise private sector investment whilst alleviating transition risks through policy levers.’
Around a third of the total investment will need to come from Europe and the US, with companies in the S&P 500 needing to commit $12trillion to green investment.
Emerging markets, which are more vulnerable to the impact of climate, will need to stump up more than half of the $100trillion and the report found a quarter will be needed in China alone
