Financing the Transition to a Net-Zero Future
5 November 2021
An Oliver Wyman and World Economic Forum Report
In Oliver Wyman's latest report (available on oliverwyman.com) co-authored with the World Economic Forum, John Colas, Ilya Khaykin, Sayli Chitre, and Simran Singh bring together the expertise of over 50 financial institutions, including banks, insurers, asset managers, and the public sector, to discuss unveiling sector-specific financing blueprints and enabling policy interventions that will help us mobilize capital towards decarbonization technologies and achieve our net-zero goals by 2050.
Approximately $50 trillion in incremental investments is required by 2050 to transition the global economy to net-zero emissions and avert a climate catastrophe. Much of the emissions abatement pre-2030 will be driven by existing technologies (e.g. solar), but post-2030 abatement relies on breakthrough technologies, such as energy efficiency solutions, hydrogen-based fuels, bioenergy, and carbon capture/utilization/storage solutions, among others. A prerequisite to the successful expansion and deployment in the 2030s is validation of these breakthrough technologies at commercial scale in the 2020s. Significant capital needs to be steered for the timely industrial decarbonization of hard to abate sectors and a global energy transition.