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Just how big is the decarbonization investment opportunity?

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on European Sting or enjoy below:

🗞️ Driving the news: Despite record high CapEx investments in climate solutions, reaching $1.7 trillion in 2023, they are still insufficient to meet the net zero by 2050 goal
The GIC, a global long-term investment firm, has developed a framework to assess the incremental investment value from decarbonization technologies, projecting that the climate solutions supply chain could add $5-11 trillion in investment value by 2030

🔭 The context: There's a noted decline in private sector contributions, prompting a need to reframe the climate finance discourse
GIC's framework aims to provide investors with a comprehensive view of potential investments across various technology, region, time period, and asset class segments

🌍 Why it matters for the planet: The potential for significant investment in climate solutions is critical for addressing climate change
This investment is expected to spur growth in green economies and contribute to the global effort to achieve net zero emissions, particularly in sectors like electricity, transportation, and building heating solutions

⏭️ What's next: The report suggests significant growth opportunities in sectors such as hydrogen, biofuels, lithium, and electricity storage and highlights the potential for early-stage investment in emerging technologies like direct air capture and hydrogen-powered aviation

💬 One quote: "The net-zero narrative often centres on risks, with limited attention paid to the potential upside." (Viola Tang and Trang Chu Minh, GIC)

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