The transition to a net zero global economy necessitates massive investment in new technologies and a transformation of many industries and productive processes towards energy-saving.
Such investment amounts to trillions of dollars a year and there already exists an enormous gap between reaching the intended goals of a green economy and the investments made to-date by public and private entities. To increase the rate of green investment, new public incentives may be necessary, as well as new classes of private sector financing instruments that aim at long-term sustainable investment returns.
Research at the Financial Markets Group (FMG) studies the array of public incentives that are already available or in preparation, as well as the likely investment impact of the various public initiatives at the national and global levels.
Research also focuses on the evaluation and development of new private sector financial instruments that enhance interest in green investment. It is through the combination of increased public and private investment that the financing gap can be closed in the years ahead and the net zero goal can be achieved by 2050. Our research on the green economy connects to all three programmes at the FMG.