G20 economies need to invest $35 tn more to achieve net-zero

G20 economies would need to invest about an estimated $35 trillion this decade, over and above the current spending, to be on track to reach net zero greenhouse gas emissions by 2050, a study by McKinsey said. A report on this was released on the sidelines of the B20 summit.

While G20 economies have made tangible progress in reducing emissions in recent years, CO2 emissions still need to further decrease almost 50% by 2030 versus 2020 levels to reach net zero goal on time.

To achieve that goal, much of the investment needed for the transition to a low-emissions economy would need to be made upfront to successfully transform the world’s energy and land use-systems.

To put it in perspective, G20 economies at present emit about 31 gigatons CO2 per annum and would need to reduce that by about half by the end of this decade. While China and some Latin American countries have the highest emissions reduction re-quirements among the upper middle income countries, Germany has the highest reduction needs among high income countries.

Business-led innovations can account for a considerable proportion of financing required to meet the sustainability goals, helping close some amount of the net zero gaps, suggest experts.

Societies would need to consider greater public-private commitment and collaboration, new incentives and even bolder innovation possibilities, analysts said.

Besides, new high growth opportunities across sectors from healthcare to renewables can fuel long-term economic growth that drives progress towards sustainability and inclusion goals.