California Management Review

Abstract

Net Zero by 2050 requires significant capital deployment through innovative climate finance and supportive policies. Policymakers and capital markets face the challenge of generating returns, driving economic growth, and ensuring sustainability. Many investments in first-of-a-kind products are not yet commercially viable. The IEA estimates existing technologies can achieve 80% of emissions reductions needed by 2030, but mobilizing capital to finance them at scale is crucial. This article explores how US and European public and private capital markets are innovating to fund investments to drive the transition to a net zero economy and demonstrates the importance of policies to galvanize them.

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