This discussion paper puts forward the economic case for the climate transition, highlighting $136-275 trillion in climate investment opportunities by 2050 and pointing out that opportunities geared towards asset owners could reach $20-31 trillion in the coming decades.

The paper finds, however, that there are political barriers to scale both cost-effective and less advances technologies, which are delaying the economic potential of net zero. The barriers include:

  • lack of value chain maturity,
  • significant upfront costs,
  • profitable brown alternatives,
  • low revenues or high operating costs, and
  • uncertainty of outlook.

The Alliance puts forward four clear solutions to address these barriers, including offering robust signals through climate policies and increasing financial support for decarbonisation technologies.