The world stands at a pivotal point in the journey toward decarbonization—emissions need to reduce by half by 2030 and reduce steeply thereafter.¹ This presents both immense challenges and significant opportunities.

Challenges include fostering global cooperation; strengthening climate policies; navigating technological transitions (including negative emissions technologies); overcoming infrastructure limitations; and securing substantial investments. In addition, a just transition is needed, one that includes reskilling workers and addressing socioeconomic disparities.

On the other hand, the transition to sustainability and clean energy presents a tremendous market opportunity, requiring unprecedented global investments of $8 trillion to $11 trillion annually to 2050 (Exhibit 1).² Power generation, transportation, as well as land use, land-use change, and forestry (LULUCF) are three sectors at the forefront of this required transformation.

Global efforts are already underway. These include China having scaled up solar photovoltaic (PV) capacity to approximately 500 gigawatts (GW), Norway having successfully shifted to more than 80 percent of new car sales being electric vehicles (EVs), and Canada having the world’s largest carbon capture and storage (CCS) facility at 14.6 million metric tons per year (Mtpa).³ Developments such as these not only address urgent decarbonization needs, but also open new avenues for economic growth and innovation.