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key: 1
title: Accelerate deployment of mature climate solutions
description: Thanks to extraordinary progress achieved over the past decade, zero-CO₂ emitting technologies exist that are lower cost to operate than their fossil-fueled rivals. The list includes wind and solar power projects in most of the world and electrified vehicles in a small but growing number of nations. Yet these climate-friendly technologies do not always flourish, in part due to policies that explicitly protect incumbents.
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While much of the climate discussion centers on long-term goals 20, 30 or even 40 years away, achieving intermediate goals is also critical. Thankfully, due to the extraordinary progress achieved over the past decade, zero-CO2 emitting technologies exist today that are lower cost to operate than their fossil-fueled rivals. The list includes wind and solar power projects in most of the world and electrified vehicles in a small but growing number of nations. Yet these climate-friendly technologies do not always flourish, in part due to policies that explicitly protect incumbents. This emphasizes the need for immediate, concrete policy action to accelerate decarbonization today.


Thanks to extraordinary progress achieved over the past decade, zero-CO₂ emitting technologies exist that are lower cost to operate than their fossil-fueled rivals. The list includes wind and solar power projects in most of the world and electrified vehicles in a small but growing number of nations. Yet these climate-friendly technologies do not always flourish, in part due to policies that explicitly protect incumbents.

Accelerate deployment of mature climate solutions

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key: 2
title: Support development of new climate solutions
description: The current suite of cost-competitive zero-carbon technologies – wind, solar, batteries and electrified transport, among others – is poised to cut emissions meaningfully over coming decades. But to zero out emissions entirely, more technologies will be required to provide around-the-clock, zero-carbon power, decarbonize industrial processes, cut emissions associated with livestock production and meet other challenges.
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The current suite of cost-competitive zero-carbon technologies – wind, solar, batteries and electrified transport, among others – is poised to cut emissions meaningfully over coming decades. But to zero out emissions entirely, more technologies will be required to provide around-the-clock, zero-carbon power, to decarbonize industrial processes, to cut emissions associated with livestock production and to meet other challenges.  

Global supply and demand for green industrial products, such as net-zero steel, cement and fertilizers, will be crucial to delivering on international climate targets. While the technologies to decarbonize these hard-to-abate sectors exist, their commercialization is still at early stages. Just 3% of the global investment in the energy transition tracked by BloombergNEF in 2022 went to low-carbon technologies for industry. Policymakers must create enabling environments to accelerate the commercialization of key emerging technologies for the industrial transition in Pillar 2, so that industry can deploy clean solutions at pace and scale in the 2030s. 
 
To achieve global net-zero, every sector of the energy economy needs to eliminate emissions completely by mid-century. There can be no free riders. Even the hardest-to-abate sectors will need to adopt carbon-free solutions, only turning to carbon removals where absolutely necessary.


The current suite of cost-competitive zero-carbon technologies – wind, solar, batteries and electrified transport, among others – is poised to cut emissions meaningfully over coming decades. But to zero out emissions entirely, more technologies will be required to provide around-the-clock, zero-carbon power, decarbonize industrial processes, cut emissions associated with livestock production and meet other challenges.

Support development of new climate solutions

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key: 3
title: Phase out carbon-intensive activities
description: Despite the immediate threat posed by climate change, national governments continue to subsidize the burning of fossil fuels or underwrite their extraction through state-owned companies. While this clearly must cease, scaling back subsidies that artificially cap consumer gasoline and electricity prices can be politically challenging. Nonetheless, policy makers and others have found innovative ways to phase out fossil-fuel supports.
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Despite the immediate threat posed by climate change, national governments continue to build thermal power plants, subsidize the burning of fossil fuels or underwrite their extraction through state-owned companies. Over 2010-2021, fossil-fuel fired capacity grew by over 1,000GW, with coal accounting for more than half. Despite climate pledges, the world added over 220GW of new coal- fired power generating capacity since the Paris Agreement. 
 
Phasing out high-emitting sources and scaling back subsidies that artificially cap consumer gasoline and electricity prices can be politically challenging. However, these are fundamental measures to limit global warming. 
 
Many assets in the real economy are long-lived, ranging from around 15 years for cars and buses, up to 50 years for fossil fuel power plants, and 100 years or more for buildings. However, many of these will need to be retired early to get the world on a 1.5- degrees trajectory. This will require a transformation of the corporations, utilities, and communities that have historically relied on their operation. 
 
Although the benefits of the low-carbon transition will far outweigh the costs, the structural change implied by the change will need to be managed to ensure new benefits created are inclusive. As the global economy transitions from high-carbon assets to low-carbon alternatives due to market forces or regulatory interventions, workers and communities that rely on these assets must be supported, in what has been coined a “just transition.” This will require a strong, coordinated action among governments, communities, investors, and businesses


Despite the immediate threat posed by climate change, national governments continue to subsidize the burning of fossil fuels or underwrite their extraction through state-owned companies. While this clearly must cease, scaling back subsidies that artificially cap consumer gasoline and electricity prices can be politically challenging. Nonetheless, policy makers and others have found innovative ways to phase out fossil-fuel supports.

Phase out carbon-intensive activities

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key: 4
title: Create appropriate climate transition governance
description: The scope of the climate crisis is forcing smart policy makers to take a multidecadal view of the problem. But policies are only as good as the frameworks that exist to implement and enforce them. Policy makers must recognize that to attract investment in low-carbon technologies – and enjoy the associated economic benefits – they must construct governance structures that are durable and long-lasting.
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The scope of the climate crisis is forcing smart policymakers to take a multi-decadal view of the problem, which encompasses multiple sectors and stakeholders. But policies are only as good as the frameworks that exist to implement and enforce them. Policymakers must recognize that to attract investment in low- carbon technologies – and enjoy the associated economic benefits – they must construct governance structures that are durable for the long term. Investors, corporations and civil society all have key roles to play in ensuring that the transition is fast, but does not leave anyone behind.




The scope of the climate crisis is forcing smart policy makers to take a multidecadal view of the problem. But policies are only as good as the frameworks that exist to implement and enforce them. Policy makers must recognize that to attract investment in low-carbon technologies – and enjoy the associated economic benefits – they must construct governance structures that are durable and long-lasting.

Create appropriate climate transition governance

The power sector has several well-established and mature zero-carbon technologies; however, support for the deployment of emerging solutions, including those that are still unproven at scale, will be needed if the power sector is to stay on track to net zero.

Power and Grids

Manufacturing, producing basic materials and other industrial activities account for about a quarter of annual global CO₂ emissions. This includes energy-intensive processes such as steelmaking, refining of chemicals and fuels and making consumer and other goods.

Industry and Materials

The movement of people and goods via cars, buses, ships, planes and other forms of transportation accounts for one-seventh of total global CO₂ emissions each year. Within transportation, emissions from road vehicles has been rising sharply, particularly as developing nations put more cars on the roads.

Transport

The buildings sector is responsible for a large share of global emissions, but retrofitting existing buildings with low-carbon heating and cooling technologies and requiring efficiency standards in new builds can reduce this share. Heat pumps are a mature, efficient heating technology with the potential to play a significant role in lowering the sector's carbon footprint.

Buildings

As developing countries grow, demand for food overall and for food with higher protein levels rises. This creates a pressing need for sustainable agriculture solutions that address the emissions challenge while not hampering economic growth.

Agriculture

Corporate climate commitments help establish a culture of transparency in the private sector.

Companies

Public acceptance and understanding of clean alternatives are fundamental to ensuring fast deployment of green technologies and solutions.

Consumers

We cannot decarbonize the global economy without support from the financial sector – banks, asset managers and investors and public finance – are critical to include in the net zero transition.

Key stakeholders

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Consumers

Financials

Companies