The net zero transition requires investment that enables the
decarbonization of the whole economy, including high-emitting and
hard-to-abate sectors. The transition of those sectors has
attracted especial attention from regulators, financiers, litigants
and wider stakeholders.
This briefing highlights key developments in transition-themed
financial instruments, their likely uptake, and how transition
planning plays an increasingly central role in bolstering investor
confidence in transition finance.
Financing the transition of high-emitting sectors
Vast volumes of capital are essential to decarbonize
emission-intensive industries. One report estimates that around USD30 trillion of
additional investment is needed for eight high-emission sectors to
reach net zero by 2050: aviation, shipping, trucking, steel,
cement, aluminum, primary chemicals, and oil and gas. Given that
those sectors together represent nearly 40% of global greenhouse gas emissions,
substantial
