The World Bank pointed out that in order to attain worldwide net-zero emissions by 2050, a significant $30 trillion investment is required.
This call to action emphasises how urgently more money is needed to shift important sectors like heavy manufacturing, steel, cement, and aviation to low-carbon alternatives.
These industries’ energy-intensive operations and restricted access to existing decarbonisation technologies make them especially difficult to decarbonise.
The World Bank’s “Net-Zero Industry Tracker 2024 Edition” report states that these challenging industries must get about 45% of the total incremental investment needed to achieve the global net-zero transition by 2050.
“To remain on track for net-zero targets, an estimated $30 trillion in additional capital will be required by 2050 for the sectors under consideration. This represents approximately 45 per cent of the total incremental investment needed for the global net-zero transition by 2050,” the report stated.
According to the analysis, in order to meet net-zero goals, current investments in energy transition projects must rise by 80%.
“Sectors must generate returns sufficient to attract investments in energy transition initiatives, which represent an 80 per cent increase in investment compared to current levels,” it added.
Industries that fall into the hard-to-abate category in particular face numerous obstacles, from high operating costs to a lack of commercially viable technology that can significantly reduce emissions.
According to the World Bank, these industries’ poor ability to absorb the significant expenses of changing while retaining profitability exacerbates this investment imbalance.
