+
Enhanced financing can unlock $50tn in global green transition: report
POWER & RENEWABLE ENERGY

Enhanced financing can unlock $50tn in global green transition: report

According to Deloitte's report on "Financing the Green Energy Transition," the implementation of enhanced financial mechanisms has the potential to generate savings of up to $50 trillion for global decarbonisation initiatives. The study underscores a substantial rise in the annual global investments required, estimated to be between $5 trillion and $7 trillion, to meet the target of achieving net-zero greenhouse gas emissions by 2050. This marks a significant increase from the current annual investment of less than $2 trillion.

The report pinpoints two key issues contributing to the underinvestment and heightened return expectations in green projects: perceived risk by private investors and the necessity for increased collaboration among governments, financial institutions, and investors in developing economies to address these risks. The proposed solution involves establishing blended, low-cost finance solutions to make green projects more appealing for investment, thereby contributing to a fair and inclusive global energy transition.

Viral Thakker, Partner and Sustainability Leader at Deloitte India, emphasised the critical role of efficient financing mechanisms for India in the global shift to net-zero. Thakker stressed the significance of public-private partnerships and innovative finance structures in achieving this objective. Jennifer Steinmann, Deloitte Global Sustainability and Climate practice leader, underscored the urgency of removing financial barriers in developing economies to expedite the transition to green energy. Hans-Juergen Walter, Global Financial Services Industry Sustainability and Climate leader, highlighted the pivotal role of concessional finance and innovative financing structures in mobilising private capital for climate action, particularly in the Global South.

According to Pradeep Philip, Partner at Deloitte Australia and report author, implementing these financial strategies could potentially reduce the cost of the net-zero transition by 40% for developing economies, contingent upon proper international coordination and participation. The report also outlines specific actions for governments to address the green finance gap, including updating energy transition policies, creating transparent regulatory frameworks, addressing market barriers, and developing human capital for the green energy sectors.

Bernhard Lorentz, Founding Chair of the Deloitte Center for Sustainable Progress, emphasised the significance of the upcoming COP28 as a crucial moment for addressing the financial gap in the transition to net-zero. He stated, "Solving the financial gap is key to accelerating the transition."

According to Deloitte's report on Financing the Green Energy Transition, the implementation of enhanced financial mechanisms has the potential to generate savings of up to $50 trillion for global decarbonisation initiatives. The study underscores a substantial rise in the annual global investments required, estimated to be between $5 trillion and $7 trillion, to meet the target of achieving net-zero greenhouse gas emissions by 2050. This marks a significant increase from the current annual investment of less than $2 trillion. The report pinpoints two key issues contributing to the underinvestment and heightened return expectations in green projects: perceived risk by private investors and the necessity for increased collaboration among governments, financial institutions, and investors in developing economies to address these risks. The proposed solution involves establishing blended, low-cost finance solutions to make green projects more appealing for investment, thereby contributing to a fair and inclusive global energy transition. Viral Thakker, Partner and Sustainability Leader at Deloitte India, emphasised the critical role of efficient financing mechanisms for India in the global shift to net-zero. Thakker stressed the significance of public-private partnerships and innovative finance structures in achieving this objective. Jennifer Steinmann, Deloitte Global Sustainability and Climate practice leader, underscored the urgency of removing financial barriers in developing economies to expedite the transition to green energy. Hans-Juergen Walter, Global Financial Services Industry Sustainability and Climate leader, highlighted the pivotal role of concessional finance and innovative financing structures in mobilising private capital for climate action, particularly in the Global South. According to Pradeep Philip, Partner at Deloitte Australia and report author, implementing these financial strategies could potentially reduce the cost of the net-zero transition by 40% for developing economies, contingent upon proper international coordination and participation. The report also outlines specific actions for governments to address the green finance gap, including updating energy transition policies, creating transparent regulatory frameworks, addressing market barriers, and developing human capital for the green energy sectors. Bernhard Lorentz, Founding Chair of the Deloitte Center for Sustainable Progress, emphasised the significance of the upcoming COP28 as a crucial moment for addressing the financial gap in the transition to net-zero. He stated, Solving the financial gap is key to accelerating the transition.

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?