# embeddings_queue

created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 29, "chroma:document": "30  PwC | State of Climate Tech 2021\nFinancial Services\nChallenge area overview and climate challenge \nUntil recently, GHG emission disclosures from financial institutions focused mostly on the direct impacts of their operations. Disclosure of Scope 3 emissions continues to be a challenge, meaning disclosures often omit the most significant source of \nemissions\u2014their portfolios. This proves a significant gap, as financed emissions have been estimated to be on average 700 times \nhigher than direct emissions.55\nInnovative application of new and existing technology to financial services, creation of new green products and accurate, reliable \nsources of data can all drive the challenge area to decarbonise. Climate risk is also challenging the insurance sector, with increasing \nlikelihood of acute and chronic physical risks affecting underwriting, reserving, covering and pricing practices.56  \nConsumer demand for green products and investment offerings is increasing. Public-sector interest is driving innovation in Financial \nServices to cater for this."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 29, "chroma:document": "This has resulted in allowing new competitors into the market that are enabling customers to track the \ncarbon footprint of their spending, invest their pensions in net zero\u2013aligned funds and borrow capital to upgrade their homes. Headlines from PwC analysis \nInvestment level \n$1.2bn ( 260% YoY)   $2.2bn (193% CAGR)\nH2 2020 - H1 2021  H1 2013 - H1 2021\nNumber of deals \n42 ( 35.5% YoY) 189 (46% CAGR)\nH2 2020 - H1 2021 H1 2013 - H1 2021\nChallenge area definition \nThe challenge area comprises:\n\u2022   Investment advice, services or \nplatforms that enable investors, \nfrom institutional investors to \nindividuals, to invest in \norganisations or portfolios aligned \nwith net zero. \u2022  Pr ovision of information to better \nunderstand material climate-related \nfinancial risks and opportunities on \nfinancial performance and position, \nfunds and portfolios."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 29, "chroma:document": "\u2022  T ailored financial products and \nservices, including insurance, that \ntake into account physical, transition \nand reputational risk. Most active investors\n(by number of deals and excluding \npublicly funded innovation agencies, \n for example, EIC, EIT InnoEnergy  \nand Eurostars)\n\u2022  Engie\n\u2022  Phitrust Investors\n\u2022  Anthemis Gr oup\nUnicorns\nOnly one of the 78 unicorns in PwC\u2019s analysis is in this challenge area: GoodLeap, \n(formerly Loanpal) which specialises in banking and provides flexible term loans to \nfinance sustainable home solutions. Investment (US$ bn)\nFinancial Services: funding raised and number of deals\n13 H1\n13 H2\n14 H1\n14 H2\n16 H1\n15 H1\n16 H2\n15 H2\n17 H1\n17 H218 H1\n18 H2\n19 H119 H220 H1\n20 H2\n21 H1\n25\n20\n0\nNumber of deals\n1.25\n1.00\n75\n50\n15\n25\n10\n5\n0\nSource:  PwC State of Climate Tech 2021, analysis of Dealroom data\n   Number of deals  n Pensions  n Lenders  n Insurers and re-insurers  n Funds, portfolios and investment\nbanking  n Banking (business and retail)"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 72f0c5a6-db3e-424f-bd40-4d1abb179c0b
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 30, "chroma:document": "31  PwC | State of Climate Tech 2021\nOur perspective\nThis challenge area has been relatively nascent but saw an explosion in growth in H1 2021, which accounted for 55% of funding that \nhas been invested in the challenge area since H1 2013. The number of deals has remained relatively stable over the past few years, \nwhilst the investment level has skyrocketed (H2 2020: US$75.6m, 21 deals; H1 2021: US$1.1bn, 21 deals). Similarly to climate tech \nmore broadly, this is driven by an increase in megadeals, with the average deal size growing from US$3.6m to US$50m. Of the total H1 2021 funding, 55% was in the UK, driven by policy changes such as the UK Government Green Financing \nFramework.57 In addition, the UK\u2019s financial regulator, the Financial Conduct Authority, has an established innovation hub that includes \na regulatory sandbox programme. This provides access to regulatory expertise and tools to facilitate experimentation and testing for \nfinancial technology firms. This has created an enabling environment for innovation and established London as a fintech leader. The \nremainder of the financing in H1 2021 was split among European countries. Key levers \nInvestment themes: H2 2020 to H1 2021\n(1) Lever receiving the most funding: Banking (business + retail)\nFunding in this lever is increasing, with the overall number of \ndeals reducing (H2 2020: US$22.4m, eight deals; H1 2021: \nUS$855m, four deals). The average deal size over this period \nincreased from US$2.8m to US$213.8m)."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 56ffc02b-6e12-4d9a-97c9-c55aea23452e
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 30, "chroma:document": "This is likely being \ndriven by both customer demand and government interest. Noteworthy start-ups: \n\u2022  Aspiration is a \u2018planet first\u2019 Los Angeles\u2013based fintech that \nprovides green financial services, raising US$50m in the \nperiod. It focuses on conscious consumerism and provides \nusers with an impact measurement score based on their \nspending habits."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 47211f55-4c8d-41d9-8500-ccfd7a2c5d1f
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 30, "chroma:document": "\u2022  Ricult Inc. has created a digital financial solution for the \nagricultural sector, raising US$3.5m in the period. They provide \nloans to improve productivity across the value chain. They use \ndiagnostic and predictive analytics to leverage satellite \nimagery, agronomic models and weather data to suggest \nfarming improvements and provide loans for cleaner farming \ntechniques. 2. Fastest-growing lever: Funds, portfolios and  \ninvestment banking\nThis lever has grown in terms of amount invested and number of \ndeals (H2 2020: US$21.8m, six deals; H1 2021: US$125.5m, 12 \ndeals). Average deal size increased over the period, from \nUS$3.6m to US$10.5m)."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: a2ffed2f-1519-4158-8cf9-f75b76b9813a
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 30, "chroma:document": "This was likely driven by consumer \ndemand resulting in an enhanced offering of investment banking \nproducts. Noteworthy start-ups: \n\u2022  Clim8 raised US$13.9m in the period, providing an investment \nplatform for sustainable investment into clean energy and \nsustainable companies. \u2022  Ethic, a tech-driven asset manager that powers the creation of \nsustainable investment portfolios, raised US$29m in the period. They build separately managed accounts, optimised to track \nthe market, align investment allocation and outperform on a \nclient\u2019s chosen sustainability criteria."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 30, "chroma:document": ""}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 11928b17-0dbe-45af-bc1e-cb626fdaa3f7
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 31, "chroma:document": "32  PwC | State of Climate Tech 2021\nChallenge area overview and climate challenge \nThe recent IPCC report indicates it\u2019s unlikely that we can limit the devastating impacts of climate change without some form of carbon \ncapture and, if society is to stay the course for a 1.5\u00b0C pathway, carbon removal.58  Fossil fuels are likely to remain a primary \ncontributor to energy production for some time due to their availability, reliability and affordability. Government and corporate commitments to net zero have also piqued interest in this challenge area over the last year, whilst the \ntechnology remains expensive and requires significant investment to benefit from learning curves. Capturing, storing and reusing greenhouse gases could play an important role in stabilising and reducing GHG emissions while our \nenergy and industrial systems transition. Carbon sequestration technologies must be developed rapidly and deployed at scale if the \nworld is to continue using fossil fuels as a key energy source. Headlines from PwC analysis \nInvestment level \n$383m ( 27% YoY)   $1.3bn (9% CAGR)\nH2 2020 - H1 2021  H1 2013 - H1 2021\nNumber of deals \n24 ( 4.3% YoY) 123 (17% CAGR)\nH2 2020 - H1 2021 H1 2013 - H1 2021\nChallenge area definition \nThe challenge area comprises:\n\u2022  The r emoval of GHG emissions from \nthe atmosphere and their storage for \nlong periods, primarily from energy \nand industrial processes but also \nincluding natural climate solutions \ndeveloped specifically to sequester \nGHGs (which do not fit within \nafforestation or land management). Most active investors\n(by number of deals and excluding \npublicly funded innovation agencies, \n for example, EIC, EIT InnoEnergy  \nand Eurostars)\n\u2022  Chevr on Technology Ventures\n\u2022  OGCI Climate Investments \n\u2022  The Roda Gr oup\nUnicorns\nThis is the only challenge area with no confirmed unicorns,59  perhaps surprising given \nthat many of the pledges made at and in the run-up to COP26 included some form of \nreliance on carbon capture or removal."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: a2350065-586d-4f3c-b6df-bb6ffb091999
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 31, "chroma:document": "A prevailing view in the market is that the \nchallenge area needs the right enabling environment to grow\u2014namely, a global carbon \nprice that shifts the underlying unit economics of solutions in this area. GHG Capture, Removal  \nand Storage\nInvestment (US$ bn)\nGHG Capture, Removal and Storage: funding raised and number of deals\n15\n0\nNumber of deals\n30\n20\n10\n10\n5\nSource:  PwC State of Climate Tech 2021, analysis of Dealroom data\n   Number of deals  n Geo-engineering  n CCUS  n Biomass uptake of CO2\n  (excluding afforestation and land management)\n21 H1\n20 H2\n20 H1\n19 H2\n19 H1\n18 H2\n18 H1\n17 H2\n17 H1\n16 H2\n16 H1\n15 H2\n15 H1\n14 H2\n14 H1\n13 H2\n13 H1\n0"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 10ba5e6b-6e57-4b2e-beb5-982640583dbe
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 32, "chroma:document": "33  PwC | State of Climate Tech 2021\nOur perspective\nBoth the amount of investment and number of deals are increasing in this challenge area (H2 2020: US$120.9m, ten deals;  \nH1 2021: US$262.6m, 14 deals). Average deal size has increased from US$12m to US$18.8m."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: b521ff52-7c80-4836-941f-d12934937583
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 32, "chroma:document": "Relatively low overall  \ndeal flow highlights the immaturity of the technologies in this challenge area, with H1 2021 recording the highest number  \nof deals for any six-month period (14). Carbon commitments and the possibility of future carbon markets will be significant drivers to create secondary markets and drive \nlearning curves."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 788fa5b4-616d-4f21-ad83-4538c260f2ab
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 32, "chroma:document": "The cost at the moment is too high to be competitive, resulting in the lack of a commercial business model. Despite \nthis, during this unprecedented year, private-sector players such as Stripe, Shopify, Ocado and Microsoft have been stimulating \ndemand for new climate tech solutions in this challenge area by creating demand for carbon removal. This is a particularly nascent challenge area, which has been highly impacted by policy, resulting in a U-shaped investment pattern."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 0edaa608-6645-492f-b4b4-f7d264714110
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 32, "chroma:document": "However, since H2 2018, it has been showing signs of maturing to a YoY growth pattern, currently at 25.5%. As a result of this \nextended period of uncertainty between H1 2013 and H1 2018, the CAGR is a mere 9%, significantly lower than the climate tech \ngrowth rate of 68%. Key levers \nInvestment themes: H2 2020 to H1 2021\n(1) Lever receiving the most funding and  \n(2) Fastest-growing lever:\nCarbon capture, utilisation and storage (CCUS) is the most \nmature lever, having raised 93% of investment funding in this \nchallenge area (US$358m) over the period. However, this lever is \nby no means mature, comprising only 29 start-ups, which have \nraised US$1.2bn collectively over the entire investment period \nanalysed (H1 2013\u2013H1 2021). The start-ups fall into two key \ncategories: carbon capture technologies deployed at the \nemissions source used for various industry purposes, and \nproduction of useful by-products to sell on for further industrial \npurposes (for example, thermoplastics). Investment in this \nchallenge area is showing some signs of growth, most likely \ndriven by the regulatory environment around carbon for industry. Noteworthy start-ups: \n\u2022  Climeworks raised US$29.5m in the period and specialises  \nin direct air capture technology. \u2022  Newlight T echnologies raised US$45m in the period,  \nfocusing on converting GHG emissions into high-performance, \ncost-effective thermoplastics. "}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 8fc6122a-aea2-4b35-9db7-9d77892e545b
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 33, "chroma:document": "34  PwC | State of Climate Tech 2021\nClimate Change Management \nand Reporting \nChallenge area overview and climate challenge \nThis horizontal has been expanded from last year, when it was called Climate and Earth Data Generation. It now allows for the \ninclusion of two new sub-levers: climate risk and resilience management and emissions data, monitoring, management, and reporting."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: f5456b0f-e5c8-4118-ba1a-86b88a17f112
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 33, "chroma:document": "Both of these changes have been made to reflect developments in the area as more start-ups emerge to help stakeholders\u2014namely \nprivate companies, investors, and local/regional/national bodies including governments\u2014to set and deliver on their net zero \ncommitments. Climate and earth observation, driven by satellite and micro-sensor data collection, is beginning to provide the data necessary to help \nglobal decarbonisation efforts, further protect the environment and achieve broader sustainable development aims. The surge in net \nzero commitments from governments, investors, and businesses over the last 18 months has helped establish the business case for \nsoftware solutions that are using this data to help establish baselines and prioritise emissions reductions activities to meet targets. Headlines from PwC analysis \nInvestment level \n$797m ( 16% YoY)   $3.3bn (54% CAGR)\nH2 2020 - H1 2021  H1 2013 - H1 2021\nNumber of deals \n73 ( 2.8% YoY) 386 (23% CAGR)\nH2 2020 - H1 2021 H1 2013 - H1 2021\nChallenge area definition \nThe challenge area comprises:\n\u2022  Recor ding or analysis of earth- and \nclimate-related data that will be \nuseful specifically for reducing \nemissions or by climate tech \ncompanies. This data is typically \ncollected via satellites, sensors or \nweather machines and analysed \nusing machine learning algorithms."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 666ada9a-32e1-4179-91c5-c4161bf2d761
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 33, "chroma:document": "\u2022  Systems that allow or ganisations, \ngovernments or individuals to \nmonitor or manage carbon \nfootprints, climate risk or resilience, \ntypically software-related. Most active investors\n(by number of deals and excluding \npublicly funded innovation agencies, \n for example, EIC, EIT InnoEnergy  \nand Eurostars)\n\u2022  Space Angels\n\u2022  Lux Capital \n\u2022  Capricor n Investments\nUnicorns\nOne of the 78 unicorns in PwC\u2019s analysis are in this challenge area, the US-based \nPlanet Labs, an aerospace and analytics company. Climate Change Management and Reporting: funding raised and number of deals\nInvestment (US$ bn)\n50\n40\n30\n0\nNumber of deals\n0.60\n0.40\n0.20\n20\n10\nSource:  PwC State of Climate Tech 2021, analysis of Dealroom data\n    Number of deals  n Emissions data, monitoring, management and reporting \n  n Climate risk and resilience management n Climate/Earth data generation\n13 H1\n13 H2\n14 H1\n14 H2\n16 H1\n15 H1\n16 H2\n15 H2\n17 H1\n17 H218 H1\n18 H2\n19 H119 H220 H1\n20 H2\n21 H1\n0.0"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: fed60632-84d0-44c1-8660-1b8213c131b4
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 34, "chroma:document": "35  PwC | State of Climate Tech 2021\nOur perspective\nBoth investment levels and number of deals have increased for this horizontal challenge area (H2 2020: US$217.8m, 32 deals; H1 \n2021: US$579m, 41 deals). The average deal size has increased from US$6.8m to US$14.1m over the period, indicating growth may \nbe stabilising as interest in this area peaks as both the public and private sector look to monitor and manage their emissions. Growth is expected in terms of emission monitoring and management, as well as climate risk forecasting. As extreme weather events \ndriven by climate change increase in intensity around the world, understanding the potential risk and quantifying the impact of these \nevents will become increasingly important if society is to adapt. Extreme weather events cost the world US$140bn in 2020.60 \nKey levers \nInvestment themes: H2 2020 to H1 2021\n(1) Lever receiving the most funding: Climate/earth  \ndata generation\nInvestment level and deal flow increased in this sub lever (H2 \n2020: US$104m, eight deals; H1 2021: US$291m, 13 deals). Average deal size also increased from US$13m to US$22.4m, \nindicating increased interest in this area."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 34, "chroma:document": "However, the relatively \nlow deal flow also indicates the immaturity of the lever. Noteworthy start-ups: \n\u2022  Climavision raised US$100m in the period. They provide \nproprietary weather data from their network of sensors  \nthat enable cutting-edge prediction modelling, using \nthe cloud and AI. \u2022  Wingtra raised US$12.5m in the period. They use drone \ntechnology to improve decisions and reduce costs and risks \nacross sectors, including surveying and geographic information \nsystems, mining and aggregates, construction and \ninfrastructure, environmental monitoring and agriculture."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: c14acaa6-feeb-4e5e-9ffa-d8dcfb515c8d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 34, "chroma:document": "2. Fastest-growing lever: Climate risk and resilience \nmanagement \nInvestment level increased while deal flow decreased over the \nperiod (H2 2020: US$67.8m, ten deals; H1 2021: US$160.9m, \nseven deals). Low levels of funding historically have meant that \nrecent growth has inflated YoY growth to 173% for the lever. Low \noverall deal flow indicates the immaturity of the lever. However, \ninterest in this lever is expected to increase as society \nincreasingly feels the initial impacts of climate change. Noteworthy start-ups: \n\u2022  T omorrow.io , which raised US$172m in the period, is a \nweather tech company that creates new ways to sense the \nweather, turning them into business insights to increase \noperational efficiency. \u2022  Cervest raised US$42.8m and specialises in earth science AI \nto help governments, growers and other businesses adapt to \nclimate volatility and protect their physical assets."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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created_at: 2025-04-28 00:40:32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 35, "chroma:document": "36  PwC | State of Climate Tech 2021\n5\nRegional investment \ndistribution\nOverall breakdown by region\nFrom H2 2020 to H1 2021, nearly 65% of \nVC dollars went to climate tech start-ups \nin the US (US$55.1bn)61. The second most \nsignificant region was Europe at \nUS$18.3bn, with China in third at \nUS$9bn."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: ed4a222a-a5d3-4bbd-b333-87e682833d13
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 35, "chroma:document": "Most regions have seen growth in \ninvestment over the past 12-month \nperiod, averaging at 208% YoY . Growth in \ninvestment in Chinese start-ups lagged \nbehind the average, though recording a \nstill pacy 138% growth rate. The fourth most prominent region for \nattracting climate tech investment was \nAsia (excluding China), which saw total \ninvestment of US$3bn over the period. Other regions accounted for \napproximately 1% of overall funding \nraised."}


created_at: 2025-04-28 00:40:32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 35, "chroma:document": "The graphic above illustrates the flow of \nfunding between geographies from \ninvestors on the left to start-up recipients \non the right. Most funding still takes place \nwithin geographical silos, though \nemerging markets tend to attract more \nforeign investment. Climate tech start-ups \nin North America and Europe raised about \n80% of their funding from investors in the \nsame region, whilst that decreased to \n55% for Chinese start-ups and just 40% \nfor African start-ups. Climate tech funding by region H2 \n2020-2020 H1 2021\nSource: PwC State of Climate Tech 2021, analysis of \nDealroom data\n 65% North America   21% Europe  \n 10% China   4% Other "}


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topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 36, "chroma:document": "37  PwC | State of Climate Tech 2021\nNORTH  \nAMERICA\nAUSTRALIA\nASIA\nEUROPE\nAFRICA\nTop ten climate tech investment hubs\nThe US and Europe dominated the list of most active investment hubs from H2 2020 to H1 2021, each taking five spots. Start-up HQ\nSan Francisco Bay Area, CA, US\nLondon, UK\nBerlin, Germany\nNew York, NY , US\nBoston, MA., US\nStockholm, Sweden\nAmsterdam, Netherlands\nParis, France\nSeattle, WA, US\nLos Angeles, CA, US\nClimate tech funding by region H2 2020-2020 H1 2021\nLatin America\nAfrica\nOceania\nAsia (ex China)\n China\nEurope\nUSA & Canada\nLatin America\nAfrica\nOceania\nAsia (ex China)\n China\nEurope\nUSA & Canada\nLatin America\nAfrica\nOceania\nAsia (ex China)\n China\nEurope\nUSA & Canada\nLatin America\nAfrica\nOceania\nAsia (ex China)\n China\nEurope\nUSA & Canada\nSource:  PwC State of Climate Tech 2021, analysis of Dealroom data"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 37, "chroma:document": "38  PwC | State of Climate Tech 2021\nTop three regions\nUS \nThe US had the highest investment in \nclimate tech across all regions between \nH2 2020 and H1 2021 (US$56.6bn), due \nto the presence of five key climate \ninvestment hubs, as well as its mature VC \nmarket. Investment was concentrated \nmost significantly in Mobility and \nTransport, which raised US$36.4bn (66%)."}


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topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 2c463bcd-8cc6-4aeb-8647-03f03b0b682f
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 37, "chroma:document": "This represents over half of global \ninvestment in Mobility and Transport in \nthe period. The next most significant challenge areas \nin terms of investment were Food, \nAgriculture and Land Use at US$6.9bn \n(13%) and Energy at US$4.9bn (9%). The \nleast invested challenge areas were \nFinancial Services, Built Environment, \nClimate Change Management and \nReporting, and GHG Capture, Removal \nand Storage, which all received 2% or \nless of total investment. Europe\nEurope is the second-largest investor in \nclimate tech, edging ahead of China over \nthe last 12 months analysed, totalling \nUS$18.3bn. Similarly to the US, Europe\u2019s \nhighest investment was in Mobility and \nTransport, followed by Food, Agriculture \nand Land Use, and Energy. The Mobility and Transport challenge area \nin Europe saw a 494% increase in total \ninvestment in H2 2020 and H1 2021 \ncompared to the 12-month period prior. The lowest-funded challenge areas were \nFinancial Services and GHG Capture, \nRemoval and Storage."}


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topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 4fefc139-c128-4e48-9fd8-e4a8d8caabb5
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 37, "chroma:document": "They received 1% \nand 0.5% of total funding, respectively. China\nChina was the third-largest investor in \nclimate tech as of H2 2020 - H1 2021 \n($9bn). Investment was heavily skewed \ntowards Mobility and Transport, with the \ntotal funding raised being US$8.9bn, \ntotalling 99% of all climate tech \ninvestment in the region. Compared to other regions, this level of \ninvestment in Mobility and Transport is \nhighly disproportionate."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 2a7d828a-5c05-4157-8a46-a0c33acbbdab
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 37, "chroma:document": "Across the US \nand Europe, investment is also distributed \nacross other challenge areas. China was the second-largest investor in \nMobility and Transport behind the US. The \nmajority of investment in the challenge \narea was in the low GHG light and heavy \ntransport lever, totalling 83%, followed by \nefficient transport systems at 9.3%. Notably, our analysis shows investment in \nMobility and Transport; Industry, \nManufacturing and Resource \nManagement and Food, Agriculture and \nLand Use during H2 2020\u2013H1 2021, but \nnot in any of the other horizontal or \nvertical challenge areas. The VC market in China as a whole is \ndistinct from other regions in several \nnotable ways. China is a relatively young \nplayer in VC, with its first state-owned VC \nfirm founded in only 1985. Since then, it \nhas rapidly grown to become one of the \nlargest VC markets in the world, with \nmuch of this growth coming in the past \ndecade.62  There is significant state \nsupport, with the Chinese government \nclaiming to have amassed Rmb12.5tn \n(US$1.8tn) of state money across \nthousands of venture capital funds to \ndrive technological innovation,63  as well \nas providing broader financing \nmechanisms, such as low-cost lending to \nsupport the country\u2019s transition to net \nzero by 2060.64 \nClimate tech funding by sector in  \nUS start-ups H2 2020-2020 H1 2021\n 66% Mobility and transport   12.5% Food and \nagriculture  8.2% Energy   9% Industry and \nmanufacturing   1.7% Financial Services  \n 00% Other (Climate Change Management and \nReporting GHG Capture, Removal and Storage)\nClimate tech funding by sector in  \nEuropean start-ups H2 2020-2020 H1 \n2021\n 58.4% Mobility and transport   16.9% Food and \nagriculture  10.1% Energy   9.4% Industry and \nmanufacturing   2.5% Built Environment  \n 00.0% Other (Financial Services\nClimate Change Management and Reporting\nGHG Capture, Removal and Storage)\nSource: PwC State of Climate Tech 2021, analysis of Dealroom data\nClimate tech funding by sector in \nChinese start-ups H2 2020\u2013H1 2021\n 99% Mobility and transport   0.7% Food and \nagriculture   00.0% Industry, Manufacturing and \nResource Management"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 3358f27e-4b44-4c7e-aa11-d676723449e5
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 38, "chroma:document": "39  PwC | State of Climate Tech 2021\n6\nThe emerging investor \nlandscape \nThough the market is still in its relative \ninfancy, climate tech is maturing rapidly \nas an asset class, with investors of all \ntypes engaged, including angels and \naccelerators in Colorado and Eindhoven, \nventure capitalists in Silicon Valley and \nTokyo, private equity firms in New York \nand London and sovereign investment \nfunds and corporations across the world. We identified over 6,000 investors \nengaged in over 8,900 deals between H1 \n2013 and H1 2021."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: dd7073cf-a7dd-4b62-b971-323a26acad47
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 38, "chroma:document": "In our Climate Tech \nInvestor Landscape below, we capture \nsome of the investors with the most \nclimate tech deals by funding stage. Despite this relatively large top-line \nnumber of investors, however, on closer \nexamination we find that the investor \necosystem remains nascent. Only a \nhandful of investors have established the \ndeeper familiarity that comes with \nfrequent investing activity: Just 500 \ninvestors made ten or more climate tech \ndeals between 2013 and H1 2021, with \nover 75% of investors making only one or \ntwo climate tech deals. As Mike Zelkind, \nco-founder and CEO of 80 Acres Farms, \nsaid in PwC\u2019s inaugural State of Climate \nTech report, \u2018There isn\u2019t yet an \nunderstanding of what will be an \naccelerator to growth\u2019 in the VC \necosystem, and it will take some time to \nincrease the number of investors with \ntailored experience in helping climate tech \nstart-ups reach scale. The \u2018valley of death\u2019 for \ninvestment\nAs climate tech looks to become \nincreasingly mainstream, the number of \ninvestors active in this area will need to \ngrow."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: f924a946-ada5-4351-99a5-012c46812af6
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 38, "chroma:document": "Investors of all types and across all \nchallenge areas are needed in order to \nreach this goal, from governments and \nincubators de-risking early-stage start-\nups through to the public market investors \nenabling sustained growth. In particular, start-ups will be looking for \ninvestors with expertise in climate tech \nwho can help them meet the unique \nchallenges faced in their field. However, \nwhen looking at deals involving \nexperienced investors (defined in this \ncase as investors involved in at least five \nclimate tech deals), we see what \ninterviewees have described as a \npotential \u2018valley of death\u2019: there appears \nto be a dearth of investors able to provide \nthe largest megadeals needed by start-\nups to scale up their operations. Key findings:\nInvestors"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 324b4b86-89fa-4c78-b881-37f6080a71b1
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 39, "chroma:document": "40  PwC | State of Climate Tech 2021\nThe Climate Tech Investor Landscape: H1 2013 - H1 2021\nThe following graphic showcases different types of key investors across different stages of funding. Private Equity / \nInvestment \nFunds\nCorporate  \nVenture  \nCapital\nCrowdfunding\nVenture  \nCapital\nAccelerators\nGovernment\n(including state \nowned \ninvestment \nfunds)\nBlackRock  \nGoldman Sachs\nT."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: b8a2639c-2ec2-420d-af7d-a70799e2f729
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 39, "chroma:document": "Rowe Price\nEngie\nCrowdCube  \nSeedrs\nY Combinator  \nTechstars\nEIT InnoEnergy\nEuropean \nInnovation \nCouncil  \nEurostars SME \nProgramme\nU.S Department \nof Energy\nAngel / Seed /  \nGrant\nSeries A / Early \nVC\nSeries B-D Series E-H / \nLate  VC\nGrowth Equity IPO, SPAC,\nPost-IPO\nEIT InnoEnergy  \nY Combinator  \nPlug and Play\nBpifrance\nEuropean \nInnovation \nCouncil\nTemasek  \nBpifrance\nTemasek  \nBpifrance\nSOSV\n500 Start-ups  \nAlmi Invest\nNew Crop \nCapital\nDemeter  \nBreakthrough \nEnergy  \nVentures\nKhosla Ventures\nKhosla Ventures  \nSequoia  \nPrelude\nKhosla Ventures  \nBreakthrough \nEnergy  \nVentures\nEurazeo\nVision Ridge \nPartners\nAlphabet  \nSoftBank  \nTencent\nAmazon  \nDaimler  \nSoftBank\nOurCrowd\nAmazon \nGE Ventures  \nVolkswagen\nOurCrowd\nBlackRock  \nFidelity\nNeuberger \nBerman  \nWellington \nManagement\n"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 54029426-5602-4f8b-ac77-5d83b34fcf6e
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 40, "chroma:document": "41  PwC | State of Climate Tech 2021\nThis is reflected in our data. We find a \nrelatively large number of seed and Series \nA investors, echoing feedback from our \ninterviews that participation in early-stage \ndeals is increasingly competitive. When \nlooking beyond Series C investment, we \nsee a relatively sharp drop-off in the \nnumber of experienced investors, sharper \nthan we see in non\u2013climate tech \nindustries. As markets mature and larger \ninstitutional capital is deployed towards \nclimate tech, we expect this gap to close, \nbut in the short term it is creating a barrier \nto the scale-up of climate tech. Other key reflections\n\u2022  Continued geographic borders in \ninvestment: Interviewees described \nhow some investors, particularly \nearly-stage funds, are only focused on \none sector or geography and are more \nopportunistic in the way they operate. Although this is partly driven by Limited \nPartner (LP) requirements, as well as \nthe nature of how deals are sourced \n(which is still often reliant on local \nrelationships and networks), such \ngeographic borders risk limiting \ninvestment into the solutions with the \ngreatest emissions reduction potential. Unlike other sectors, where \ngeographical competition can support \ninnovation, the urgency of the climate \nchallenge means that speed and \ncooperation will be required to rapidly \nscale up the most effective \ntechnologies. As Hampus Jakkobson of \nPale Blue Dot states, \u2018Climate change is \na transboundary issue. Therefore, we \ncan\u2019t look at climate tech with \ntraditional siloed geographical and \nsectoral lenses.\u2019\n\u2022  Identifying value and tackling \ngreenwashing through impact \nanalysis: A number of investors we \nspoke to have increasingly taken to \nforecasting GHG mitigation potential as \na key diligence step of any climate tech \ndeal. As well as helping to attract LPs, \nsuch reporting is increasingly \nencouraged or mandated by \nregulations, such as the EU\u2019s \nSustainable Finance Disclosure \nRegulation."}


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topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 796c3b60-be5d-4b46-a543-f88a47446011
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 40, "chroma:document": "For many investors, \nhowever, this metric is not just about \ncompliance, it\u2019s a key indicator of \npotential success, alongside traditional  \nmetrics such as total addressable market. Many interviewees feel the VC market is \nheading towards more consistently \nreporting on these metrics, but the \nindustry sentiment is that a flexible \napproach is needed, particularly for \nearly-stage start-ups. \u2022  Increasing numbers of megafunds: \nMegafunds are being ring-fenced for \nclimate tech, including Brookfield\u2019s \nUS$7.5bn net zero shift fund and \nInclusive Capital\u2019s US$8bn impact \ninvesting fund. In PwC\u2019s recent \nUnlocking investment for Net Zero \ninfrastructure report, we found that \nthere is a deep pool of private, low-cost \ncapital primed to invest in net zero. However, these institutional investors \nneed a more certain policy environment, \nand in particular support from \ngovernments to mitigate early-stage \ntechnology risk.65 Policymakers appear \nto be acting on this need, with COP26 \nseeing over 40 world leaders sign up to \nthe Glasgow Breakthroughs, aiming to \nmake clean technologies the most \naffordable, accessible and attractive \nchoice globally in the most polluting \nsectors by 2030.66  \nNumber of experienced climate tech investors by deal stage\nSource: PwC State of Climate Tech 2021, analysis of Dealroom data\n Number of experienced investorsNo. of experienced investors\nSEED SERIES A SERIES B SERIES C\nRound type\nSERIES D GROWTH \nEQUITY\nSPACs\n125\n75\n50\n100\n25\nCaption: The number of experienced investors by round type."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 40, "chroma:document": "An experienced investor is defined here as one \nthat has been involved in at least five climate tech deals. Time period: H1 2013 to H1 2021."}


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topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 40, "chroma:document": "0"}


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topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 49408105-9e01-4b04-a482-12dc90482c68
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 41, "chroma:document": "42  PwC | State of Climate Tech 2021\n7\nComparing climate tech \ninvestments against climate \nimpact67 \nVenture capital can play a critical role \nin accelerating the uptake of climate \ntechnologies by 2030, to achieve net \nzero by 2050. The investment trends \nfound in H1 2021 are an example where \nthe private sector has demonstrated that \nit can scale and rapidly deploy capital into \nclimate tech. In parallel, by 2050, almost half of global \nCO2 emissions reductions will come \nfrom technologies that are currently \nonly at the demonstration or prototype \nphase.68 Significant and sustained \ninvestment is required across the \ninnovation life cycle to ensure that \ncommercially ready solutions are able to \nscale within this next decade, whilst R&D \nis accelerated to achieve the necessary \nbreakthroughs for the future. The sooner \nthese nascent technologies can achieve \nscale, the greater the total emissions \nreduction potential for society. Comparing global GHG emissions by \nchallenge area to the investment capital \neach has received, it\u2019s clear that some \nareas are not proportionally funded.69 The \nMobility and Transport challenge area \nreceived 61% of all investment funding in \nour analysis but represents just 16% of \nglobal GHG emissions.70 The funding gap \nis largest in the Built Environment \nchallenge area, which receives just 4% of \nfunding in proportion to its contribution to \nGHG emissions of 21%. In this section, we dive deeper into these \nchallenge areas, taking a look at the \nindividual technologies underpinning \nthem, which are driving these patterns. Key findings:\nImpact analysis\nShare of global emissions and climate tech venture investment by challenge area\n100%\n50%\n25%\n75%\n0\n Mobility   Industry and Manufacturing and Resource Management   \n Food and Agriculture   Energy   Built Environment\nSource: PwC State of Climate Tech 2021, analysis of Dealroom data. Note: Emissions data is allocated to the \nend sector associated with emissions."}


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topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 41, "chroma:document": "For example, energy use associated with mobility is allocated to Mobility \n& Transport rather than Energy."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: df23d9ef-9117-474c-92e5-ae9e6d3dc68b
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 41, "chroma:document": "Likewise, no emissions are allocated directly to Financial Services. Share of global emissions (2016)  Share of global climate tech venture\ninvestment (2013 - H1 2021)\n61%\n16%\n9%\n29%\n12%\n20%\n15%\n14%\n4%\n21%"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 807c746e-3c54-4f2e-a196-f89e2259638f
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 42, "chroma:document": "43  PwC | State of Climate Tech 2021\nOverall findings\n\u2022  Capital is deployed at scale when \nbusiness models and climate \ntechnologies are both viable. Excitement around certain technologies, \nnamely in Mobility and Transport, \nattracts significant capital and receives \na greater proportion of funding as \ncompared to their potential impact on \nclimate change mitigation. Once a \ntechnology develops a proven business \nmodel, capital flows quickly and can \nhave significant impact in accelerating \nadoption. However, investment is \ncurrently disproportionately aligned \ntowards challenge areas with lower total \nemissions reduction potential (ERP) \nwhile high-ERP challenge areas, with \nless mature technologies, remain \nunderfunded. \u2022  Incr eased funding is needed across \nall challenge areas to enable \nbreakthrough innovations and trigger \nsectoral tipping points, whilst also \nsupporting commercially ready \ntechnologies to scale over the next \ndecade. Policies are needed to provide \nincentives to investors, and clear \ngovernment action plans, support of a \nconsistent carbon price, and R&D \ninvestment are needed to accelerate \nprivate-sector investment and \ntechnological innovation. This will \nenable an increasing scale of rapidly \ndeployed capital into the necessary \nclimate technologies over the next \ndecade and beyond. \u2022  More patient capital from early-stage \nVC investors is required to deliver \nfuture breakthroughs. Long-term \nstrategic plans and targeted policy \nmeasures (for example, a carbon price) \nby governments are needed to kick-\nstart investment into technologies in \nhard-to-abate sectors (for example, low \nGHG building materials) and carbon \nremoval technologies that will be pivotal \nto achieving global net zero targets\n. The decarbonisation opportunity over \nthe coming decades is the biggest \nbusiness opportunity since the Internet \nrevolution, perhaps even 100x bigger \nthan that revolution. So imagine the \nGoogles, Amazons, etc., we\u2019ve seen\u2014\nwe\u2019ll see more in climate tech\u201d\n(Yair Reem, Extantia)\nThe challenges are that we are investing \nin something that is unproven but looks \npromising."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 42, "chroma:document": "So the government can help \nus get comfortable with that."}


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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 42, "chroma:document": "As things \nbecome more uncertain, the government \ncan help, and not necessarily by \nproviding 100% subsidy\u201d  \n(PwC UK Interview with Infrastructure Investor)71\nHow mature are climate technologies? Our analysis of maturity is defined by determining the technology readiness level (TRL) \nof technologies, sourced from academic or grey literature.72 Building on individual TRLs, \nour technology areas are ranked on a scale from prototype (TRL 4-6), to demonstration \n(TRL 7-8), to commercial adoption (TRL 9+), based on an assessment of the aggregated \nTRLs of individual technological applications and processes in that technology area.73\nPrototype (TRL 4-6) \nDirect air carbon capture and \nstorage (DAC/S) \nLow GHG iron and steel \nLow GHG shipping \nOcean and tidal power\nThese technologies are largely \nat the R&D stage, starting as \nconcepts in a laboratory \nenvironment, through to \nlate-stage prototypes in \nrelevant deployment \nconditions. Whilst individual \ntechnology use cases \nmay have reached a \ndemonstration phase with \nreal-world testing, due to their \ncurrent levels of deployment \nthey are considered to be less \nmature compared to \ntechnologies in the \ndemonstration category. Demonstration (TRL 7-8)\nAlternative foods / low GHG \nproteins\nCCUS in power\nPrecision agriculture \nFood waste technology \nGreen hydrogen production \nLow GHG concrete and \ncement \nSustainable aviation fuels \n(SAFs) \nTechnologies in this category \nhave full-scale demonstration \nor pilot projects under way, \noften gathering data to \ngenerate investor and \nregulator confidence whilst \ntargeting a commercial \nintroduction. Several technology areas \nlisted in this category\u2014for \nexample, precision agriculture \nand food waste technology\u2014\nhave already achieved \ncommercial launch in some \nmarkets."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: dfdd7c07-6113-4644-b27d-71525e0ae837
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 42, "chroma:document": "However, these are \ntypically at a significantly \nsmall scale compared to the \ntotal available market, hence \na lower maturity score. Commercial adoption \n(TRL 9+)\nLight-duty battery EVs \nSolar power \nWind power \nMicro mobility\nThese are technologies that \nhave proven commercial \nbusiness models in their \nrelevant environments. Some \nof these technologies\u2014for \nexample, solar power and \nwind power\u2014have been \ncommercially available for well \nover a decade. However, \nthere is still opportunity for VC \ninvestors to accelerate \ninnovation \u2018at the edges,\u2019 \nsuch as developing advanced \nmaterials to make efficiency \ngains or software solutions to \nmanage and optimise \nrenewables-to-grid \ninteractions. Our research suggests that \nthese technology areas are \nrapidly approaching their \nglobal sectoral tipping points, \nwith continued investment \nneeded across the funding life \ncycle to enable them to scale, \novercome remaining barriers \nto adoption, optimise, and \ntarget underserved customer \nsegments."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 79d9c63c-cfef-4f99-b133-94c70bd20d1b
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 43, "chroma:document": "44  PwC | State of Climate Tech 2021\nTotal funding against emissions reduction potential by climate technology (2013-H1 2021)\n12k\n8k\n6k\n4k\n2k\n0k\n10k\n Energy   Food, Agriculture and Land Use   GHG Capture, Removal and Storage   \n Industry, Manufacturing, and Resource Management   Mobility and Transport \nSource: PwC State of Climate Tech 2021, analysis of Dealroom data, Project Drawdown data, and grey literature. See appendix for detail."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: ad5106e8-242e-4dc3-8d8b-071414ac434e
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 43, "chroma:document": "Note: In our analysis the \nstart-ups and funding rounds included focus on VC investment and target emerging technologies. Funding from public markets (post-IPO) fundraising or large-scale project \nfinancing, that is used to scale up more mature technologies, is not included. 0 20 40 60 80 100 120 140 160\nMatured Maturing\nNascent Under-funded\nTotal investment 2013-H1 2021, US$mn\nCumulative emissions reduction potential by 2050 (GtCo2e)\nAlternative foods/low GHG proteins\nWind power\nFood waste technology\nGreen hydrogen production\nPrecision agriculture\nMicromobility\nLow GHG shipping\nLow GHG concrete\nLow GHG iron and steel\nCCUS in powerDAC/S\nSAFs\nOcean & tidal power\nIs capital being deployed in line \nwith climate impact? A handful of technologies are taking \nthe largest slice of the investment pie\nIn short, the answer is no. Our analysis \nshows that the top five technologies in \nterms of cumulative ERP by 2050,74 which \nrepresent 81% of total emissions \nreduction by 2050, have received just \n25% of the total investment funding over \nthe analysis period from 2013 to H1 2021. The share of capital is dominated by a \nhandful of technology areas, with the \nmajority of climate technology solutions \nreceiving just a fraction.75\nTwo technology areas worth mentioning \nhere are light-duty battery EVs76 and \nmicro mobility. The former represents just \n3% of the total ERP but has received in \nexcess of 60% of the total funding, and \nthe latter represents just 0.4% of ERP \nwhilst receiving 9% of the funding."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: d590c129-8ef3-4088-8d6f-ee631a3fa6ed
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 43, "chroma:document": "Solar power\n"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: cd524ccd-6d07-4057-9965-f6cdb4384e50
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 44, "chroma:document": "45  PwC | State of Climate Tech 2021\nWhere might we find the next \ngigacorns?77 \nThe chart below focuses on the \ntechnology areas that, based on current \ntechnology penetration scenarios, \nindividually represent less than 30 \ngigatons of CO2 equivalent (GtCO2e) of \ncumulative ERP by 2050. Despite having \nsmaller ERPs78 relative to technology \nareas such as alternative foods or solar \npower, these technologies are likely to \nplay a pivotal role in decarbonising their \nsectors, each of which contributes \nsignificantly to the global GHG to the \nglobal GHG emissions budget. Though no individual company is close to \nachieving gigacorn status today, many of \nthe highest-polluting challenge areas \npresent a large enough problem from a \nCO2 perspective that this could be \npossible in the future. It is for this reason \nthat the technologies shown here are \nlikely to represent those that will achieve \nthis status in the future. Today, concrete \nand cement production represents 8% of \nglobal GHG emissions, with iron and steel \nadding an additional 6% to 8%.79  These \nare clearly industries where significant \nimpact at scale can be achieved with the \nright mix of technology and investment. What is certain, however, is that no single \ntechnology will be able to shift the curve \non climate change and that innovation \nand scale are required across all the \nchallenge areas mentioned in this report."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 946e2989-1087-4508-ab5d-e6f7f30e3f19
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 44, "chroma:document": "However, as markets in maturing climate \ntechnologies continue to scale, investors \nlooking for ten-times to 100-times returns \nand beyond should look at these relatively \nnascent technology areas, where multiple \nunicorns do not yet exist to crowd out the \nmarket. Total funding against emissions reduction potential by climate technology (2013-H1 2021) - ZOOM IN ON NASCENT QUADRANT\n3,500\n2,500\n2,000\n1,500\n1,000\n500\n0k\n3,000\nSource: PwC State of Climate Tech 2021, analysis of Dealroom data, Project Drawdown data, and grey literature. See appendix for detail."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 66d9e3df-2484-46e4-93ff-891128f4778c
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 44, "chroma:document": "Note: In our analysis the \nstart-ups and funding rounds included focus on VC investment and target emerging technologies. We have not included funding from public markets (post-IPO) fundraising \nor large-scale project financing that is used to scale up more mature technologies. This chart is a closer look into the \u2018Nascent\u2019 technologies quadrant from the previous \nchart, with the x-axis limited to 30 GtCo2e and the y-axis limited to US$3.5bn.80\n0 5 10 15 20 25 30\nNascent\nTotal investment 2013 - H1 2021, US$mn\nCumulative emissions reduction potential by 2050 (GtCo2e)\nPrecision agriculture\nCCUS in power\nLow GHG shipping\nOcean & tidal power\nSAFs Low GHG iron and steel\nLow GHG concrete\nDAC/S\n Energy   Food and Agriculture and Land Use   GHG Capture, Removal and Storage   \n Industry and Manufacturing and Resource Management   Mobility and Transport \nMatured\nNascent\nMaturing\nUnder-funded"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: d75aee91-7e2d-4019-94cb-dbd2ef2992ec
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 45, "chroma:document": "46  PwC | State of Climate Tech 2021\nVenture capital\u2019s role in \naccelerating innovation\nIdentifying gaps in innovation\nOur analysis highlights five technology \nareas (green hydrogen production, food \nwaste technology, precision agriculture, \nsustainable aviation fuels and low GHG \niron and steel) that are potentially \nlagging behind in terms of innovation in \nresearch and development, as shown by \ntheir relative immaturity compared to the \nproximity of their sectoral tipping point \n(diagram below). Given that it can take \nmany years, and even decades, to \nachieve commercialisation following the \nprototype and demonstration phases, and \nthe need for rapid decarbonisation in \nsome of the most carbon intensive \nindustries, society needs to quickly \nmobilise and accelerate these \ntechnologies."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 78ab4937-d704-4c44-b1ca-c95e37971cdc
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 45, "chroma:document": "We conducted interviews with VC \ninvestors to understand the market\u2019s view \non the role played by VC today in \nadvancing climate technology solutions. Several interviewees expressed their \nconcern at the level of investment \ntargeted towards financing technologies \nthat are scaling fast but that will not \ncontribute meaningfully to global \ndecarbonisation. However, many \ninterviewees also expressed their hope \nthat VC investors would do what they do \nbest and facilitate \u2018cutting the green \npremium\u2019 on the many nascent \ntechnologies that have emerged across \nchallenge areas, to make them ready for \nwidespread adoption. Not doing so runs \nthe risk of missing an opportunity whilst \nalso not helping to solve the  \nclimate problem."}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 79d2e898-96dd-45c5-9041-c418f0561975
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 45, "chroma:document": "Tipping point vs. technology maturity\nSource: Adapted from IEA energy technology perspectives (2021) and PwC analysis\n Commercial adoption   Demonstration   Prototype   At risk of innovation gap\nApproximate tipping point (Year)\n2025\nBattery EVs CCUS in power DAC/S\nLow GHG shipping\nOcean and tidal power\nMicro mobility Alt. foods/low GHG proteins\nLow GHG concreteGreen hydrogen production\nSolar power\nWind power\nPrecision agriculture\nFood waste tech\nSAFs\nLow GHG iron and steel\n2030 2035 2040+"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: e206a250-6a0c-468c-a8ff-7752237c0162
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 46, "chroma:document": "47  PwC | State of Climate Tech 2021\nSource: PwC State of Climate Tech 2021, analysis of Dealroom data\nTotal funding by technology maturity category (2013-H1 2021)\n100k\n80k\n40k\n20k\n60k\nPrototype  Demonstration\nTechnology maturity category\n19k (15%)1.7k (2%)\nCommercial adoption\n102k (83%)\nTotal investment 2013-H1 2021, US$mn\n0\nDisparity in funding within and across maturity categories\n"}


created_at: 2025-04-28 00:40:32
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 43b46519-b75d-4a28-b905-75921d125fd2
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 47, "chroma:document": "48  PwC | State of Climate Tech 2021\n0k\nTotal funding against technology maturity by climate technology (2013-H1 2021)\n12k\n14k\n8k\n6k\n4k\n2k\n10k\n Prototype  Demonstration  Commercial adoption\nSource: PwC State of Climate Tech 2021, analysis on Dealroom data, technology maturity adapted from IEA Energy Technology Perspectives (2021), and grey literatureTotal investment 2013 - H1 2021, US$mn\nRelative technology maturityOcean & tidal power\nDAC/S\nLow GHG shipping\nSAFs\nPrecision agriculture\nLow GHG concrete\nAlternative foods/low GHG proteins\nFood waste technology\n Green \nhydrogen \n production\nWind power\nSolar power\nMicro mobility\nCCUS in power\nAnalysis into the total funding raised \nacross the three maturity categories \ndemonstrates a clear and unsurprising \npattern, with greater funding being \nchannelled into more mature \ntechnologies, which tend to have lower \nproduct and commercial model risk. However, for a given level of maturity\u2014\nand therefore a similar target internal rate \nof return for investors\u2014there is significant \ndisparity in the total funding raised, as \nshown by the chart below.81 For example, \nfood waste technology received 35 times \nas much funding as low GHG concrete \nover the investment period, despite their \nsimilar technology maturities. This is likely \ndue to the additional risks posed to \ninvestors when considering investment \ninto capital-intensive climate \ntechnologies, such as carbon capture and \nstorage projects, compared to low GHG \nprotein technologies, which have \nsignificantly lower capex and end-product \nunit costs and which benefit from proven \nchannels to revenue."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: dc4c6ec0-0a00-468e-84f1-267ee6be0507
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 47, "chroma:document": "Some of these \ntechnologies also fall within industries that \nare not typically found in the traditional \nstart-up ecosystem, which can make \ninnovation more difficult."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 9aa0d84e-512d-41b9-93bb-05d94633600d
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 47, "chroma:document": "Another explanation is that sustained \nmarket excitement about certain \ntechnologies, buoyed by high-profile \ninvestors, has led to significant \ninvestment in some technologies. This \npresents opportunity areas for capital to \nscale innovation in those technologies \nthat may be underfunded for their \ntechnological maturity. Determining which \ntechnologies are underfunded vs. their \npeers remains highly geography- and \nmarket-dependent, and also depends on \ntotal addressable market assumptions, \nwhich are bespoke to each market. "}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 6fd16dd8-d2e2-4998-b0f2-3f898b58938a
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 48, "chroma:document": "49  PwC | State of Climate Tech 2021\nClimate tech needs a new  \nclass of investor\nGiven the nature of VC, with fund life \ncycles rarely exceeding ten years, and the \nfact that climate technologies typically \ntake longer to develop and scale than \ntraditional technology offerings, there is a \ngrowing appetite for climate technology \ninvestors to be more patient with their \ncapital. Additionally, with investors \noptimising internal rate of return within \ntheir investments, they have incentives to \nopt for technology investments that scale \nand exit fast."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 1a3de452-14dd-4426-b1c7-05c9348ca045
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 48, "chroma:document": "More patient capital from VC is needed to \nfund innovation in capital-intensive \ntechnology areas that can also deliver the \nnecessary financial returns, alongside \noutsized environmental and social impact. This reinforces the point made in our 2020 \nreport that access to patient capital is \nimportant. Vinod Khosla, founder of \nKhosla Ventures, said, \u2018Matching the time \nhorizons of climate tech start-ups with \ninvestors is a key challenge. Patient \ncapital is needed, which is why \nBreakthrough Energy Ventures has set up \na 20-year fund, rather than demanding \nreturns within the traditional ten years.\u2019 \nWith the right investor type, these \ntechnologies could achieve the \nexponential growth that is needed to \nmake meaningful steps towards \ndecarbonisation across the hardest-to-\nabate sectors, such as the built \nenvironment, industry and manufacturing, \naviation and shipping. The challenge lies \nin convincing investors beyond only the \n\u2018impact-first\u2019 tribe to operate in this way \nand unlock the hundreds of billions of \ndollars of capital that is available.82 \nBreaking down the barriers to  \nearly-stage investment in  \ncapital-intensive start-ups\nData from the UK\u2019s Energy and Climate \nIntelligence Unit shows that 137 countries \nhave aligned themselves to climate \nneutrality targets as of June 2021. Achieving these targets requires urgent \naction, and especially so for the most \npolluting challenge areas, such as energy, \ntransport and industry and manufacturing, \nwhich rely on expansive infrastructure."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 8f064b3c-92e0-4ae1-bd0c-5d465b11537d
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 48, "chroma:document": "Real assets with high upfront costs and \nlong asset lives need to be planned, \nfinanced and built. Clearer investment \nsignals are required if this is to happen at \nthe pace and scale required to replace \ncurrent high GHG\u2013intensity assets with \nlower GHG\u2013intensity alternatives. Investment by the UK and other countries \ninto offshore wind power has proven that \ncosts can fall, around 60% in the decade \nto 2020, with the UK now a leading \ndeveloper for offshore wind power.83  \nThis demonstrates that, with the right \nbalance of government policy support \nand private-sector investment, significant \nstrides can be taken towards meeting net \nzero by 2050. Today\u2019s emerging \ntechnologies and net zero innovations \nrequire the same level of strategic \ndirection and partnership between \ngovernment and private investors to \naccelerate the pace of decarbonisation, \nsupported by government policies such \nas introduction of carbon pricing to \nprovide market confidence and initiatives \nsuch as the First Movers Coalition to \naccelerate innovation in harder-to-abate \nsectors.84 \nWhilst scaling infrastructure technology \ntypically relies on low-cost, patient \ncapital, such as that provided by \ninstitutional investors such as pension \nfunds, sovereign wealth funds and \ninfrastructure funds, there is also a \ncontinued need for VC to help prototype- \nand demonstration-stage companies to \nconduct R&D and to support the scale-up \nof technology and supply chains. "}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 49a6e864-4f2a-44f9-9f81-b007ebb952df
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 49, "chroma:document": "50  PwC | State of Climate Tech 2021\nCorrecting market failures: a global carbon price85 \nThe CCUS industry provides an insightful case study to examine the impact of a meaningful carbon price. Putting a price on carbon \nseeks to internalise the externality of carbon pollution across all industries."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: b6feb249-7843-4e97-b84b-d24d5197e77a
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 49, "chroma:document": "Carbon taxes help to reduce the \u2018green premium\u201986 as they \nforce faster price parity to more expensive green alternatives."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: b2cfaa7f-ee3e-4093-b32e-f93d9152aa03
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 49, "chroma:document": "They provide an incentive to pollute less and, in doing so, encourage the \nshift to more renewable sources of energy and forms of production, and can lead to lower and cleaner consumption. CCUS technologies are complex. Whilst they can significantly reduce emissions from energy generation and intensive industrial \nprocesses, they also prolong global dependence on fossil fuels and are seen by some as counterproductive in the mission to a  \nnet zero future. Though more countries are increasing their support for CCUS development and deployment, many planned projects face increased \nuncertainty in the near term because of the COVID-19 pandemic and continued faltering oil prices, which are often used to index the \nprice of CO2, making commercial viability a challenge. And given that the utilisation of captured CO2 to make products or in industrial \nprocesses is still in its infancy, most CO2 captured today is used for enhanced oil recovery, an expensive process that relies on a high \ncrude-oil price to be viable. With global oil prices seeing historic lows because of the COVID-19 pandemic, the world\u2019s largest \ncommercial CCUS power plant, Petra Nova in Texas,87 shut down operations in mid-2020, casting a shadow on the uptake of CCUS \ntechnologies. And though existing CCUS technologies are promising and require capital to scale, there are several technological innovations at earlier \nstages of maturity that could increase capture rates and provide greater cost competitiveness for the technology."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: ddd29782-b584-483e-9f71-8d5d2afb60aa
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 49, "chroma:document": "CCUS applied to \npower generation is at an early stage of commercialisation, so securing investments will require complementary and targeted policy \nmeasures such as long-term strategic plans, supporting tax credits and grant funding. With the right mix of incentives, including a global carbon price in place, this and other clean energy technologies could see a rapid rise \nin adoption. Until then, for the majority of investors, it will remain challenging to invest in these technologies. In the investment period covered, the CCUS in the power technology area raised just US$646m of funding, representing less than 1% \nof total funding across all the impact technology areas. The majority of the funding to date (2013\u2013H12021) has been concentrated in \nthree companies: LanzaTech (US$294m), CarbonFree Chemicals (US$141m) and Svante (US$136m). Given the gap in funding, rising \ndemand and growing recognition of the importance of CCUS in meeting the world\u2019s decarbonisation goals, CCUS could provide a \nmajor opportunity for investors. Total funding for CCUS in power against Brent Crude and EU Emmissions Trading System prices (2013-H1 2021)\nSource: PwC State of Climate Tech 2021, analysis on Deal room data, US Energy Information Agency and World Bank Group data\n Total funding (US$mn)   Brent Crude price (US$)   EU Emissions Trading Systemj (ETS price (US$/tCO2e)\nTotal investment 2013-H1 2021 (US$ mn)\nBrent Crude price (US$) and EU ETS price (US$/tCO2e)\n100\n80\n60\n40\n0\n180\n160\n140\n120\n100\n80\n60\n40\n20\n2013 2014 2015 2016 2017 2018 2019 2020 2021\n0"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: a2c74456-8d52-4f49-91a2-d390eac2695f
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 50, "chroma:document": "51  PwC | State of Climate Tech 2021\n8\nThe climate tech landscape is moving \nquickly, and momentum has significantly \naccelerated over the past year since \nPwC\u2019s inaugural report. We have \nuncovered a number of key findings, \nwhich should be considered in order to \nmaximise the impact of climate tech \ninvestments."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 50, "chroma:document": "1   Although capital is pouring into \nclimate tech, attention is still needed \nat pre-seed and seed stages to \ndrive breakthrough innovations, \nadvancing and scaling future \ntechnologies to help tackle the climate \ncrisis. 2   Investors need to look beyond the \nlow-hanging fruit to help scale \ntechnologies in harder-to-abate \nsectors. Our impact analysis \ndemonstrates that, of the technologies \nanalysed, just 25% of the total funding \nraised is being channeled into the \ntechnologies that have 81% of the \nemissions reduction potential. Investors need to focus on channeling \nfunding into the critically underfunded \ntechnologies that have a higher \nemissions reduction potential to drive \ndeep decarbonisation of the economy. 3   Investors and LPs must demand \nand support impact analysis \npre-deal and ongoing reporting \nduring the lifetime of investments. Climate tech VCs\u2019 approaches vary \nfrom a \u2018small, medium, large\u2019 sizing \napproach to detailed emissions \ncalculations. The latter can place \nsignificant strain on start-ups; \ntherefore, frameworks and approach \nneed to be carefully considered based \non maturity and scale."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 50, "chroma:document": "Building \ncapability to understand and analyse \nthis across traditional VCs is also \nimportant."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 50, "chroma:document": "There are various high-\ncalibre public resources that can be \ndrawn on to support this."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 10530b5d-5eab-49ed-b229-466e55c781bc
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 50, "chroma:document": "4   Though the size of the prize can be \nenormous, investors must hold a \nlonger-term investment horizon for \nmany of these technologies to mature. Along the way, many may fail, so \nclimate tech investors must also have \na higher risk profile. 5   Many brands and pr oducts are \npivoting to integrate ESG into their \noffering. Investors must be wary of \npotential greenwashing attempts \nand take a balanced view of emissions \nreduction potential as well as \ncommercial return. 6   A significant opportunity r emains to \ntake the lessons learned from \ncountries that are leading climate \ntech development, to implement \nthese in emerging markets. This is \nespecially important in leading a just \ntransition, as many of these countries \nwill be disproportionately affected by \nthe most severe impacts of climate \nchange, despite being amongst the \nlowest emitters of GHGs. 7   Ninety-seven percent of funding is \ngoing towards technologies that \nmitigate climate change, with only \n1% going into adaptation. The IPCC \nhave made it clear that significant \nemissions reductions and CO2 removal \nwill be required for a 1.5\u00b0C pathway. It \nis therefore likely, if these technologies \nare not accelerated, that large-scale \nadaptation will be required to deal with \nthe impacts of climate change in the \nshort and longer term. Of the 3,000+ \nclimate tech start-ups analysed, only \n1% were focused on adaptation, \nhighlighting a clear innovation and \nfunding gap. The last 12 months have shown a clear \nintention globally to respond to the \nclimate crisis and achieve net zero. There \nis now a critical role for VC to set the \ndirection of travel for investment, focusing \non the key technologies that will enable \ndeep decarbonisation. Summary"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 51, "chroma:document": "52  PwC | State of Climate Tech 2021\nAcknowledgements\nThis report was written by Leo Johnson, Emma Cox, Denise Chan, Tarik Moussa, Millie Foakes, \nVish Arora and Jess Wrigley of the PwC UK Innovation & Sustainability team, in collaboration with \nAzeem Azhar of Exponential View. Leo Johnson\nDisruption & Innovation Leader \nPartner, PwC UK\nleo.f.johnson@pwc.com\nJess Wrigley\nInnovation & Sustainability \nPwC UK\njessica.wrigley@pwc.com\nAzeem Azhar\nSenior Adviser to PwC UK,  \nand Founder, Exponential View\nazeem@azhar.co.uk\nMillie Foakes\nInnovation & Sustainability \nPwC UK\nmillie.foakes@pwc.com\nVish Arora\nInnovation & Sustainability \nPwC UK \nvishvas.q.arora@pwc.com\nDenise Chan\nInnovation & Sustainability \nPwC UK\ndenise.k.chan@pwc.com\nTarik Moussa\nInnovation & Sustainability \nPwC UK\ntarik.moussa@pwc.com\nEmma Cox\nGlobal Climate Leader \nPartner, PwC UK\nemma.cox@pwc.com\nPwC would also like to acknowledge the valuable contributions of \nDealroom and the interviewees and inspirers in the development of this \ndocument. Dealroom.co: Providers of the underlying investment data."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 51, "chroma:document": "Dealroom.co is a data provider on start-up, early-stage and growth \ncompany ecosystems in Europe and around the globe. Project team: \nYoram Wijngaarde and Matteo Renoldi. Interviewees and Inspirers\nWe interviewed the following individuals to better understand  \nthe latest state of play on climate tech investment over the last \n12 months. The interviewees cover a range of geographies and \ninvestor types:\nBrett Bivens (Head of Research, Prima Materia)\nMark Cupta (Managing Director, Prelude)\nDanielle Harris (Managing Director, Elemental Excelerator) \nChristian Hernandez (Partner, 2150 VC)\nHampus Jakobsson (General Partner, Pale Blue Dot)\nSven-Christian Kindt (IS&P Private Equity Investments, Credit Suisse) \nAlex Langguth (Co-Founder and Managing Partner, Ubermorgen) \nRamez Naam (Co-chair, Energy and Environment Program at \nSingularity University) \nMatt Ocko (Co-managing Partner, DCVC)\nYair Reem (General Partner, Extantia)\nKavita Surana \n(Assistant Research Professor, Center for Global \nSustainability, University of Maryland)\nAlbert Wenger (Managing Partner, Union Square)"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 52, "chroma:document": "53  PwC | State of Climate Tech 2021\n53  PwC | State of Climate Tech 2021\nAppendices"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 53, "chroma:document": "54  PwC | State of Climate Tech 2021\nAppendix 1: \nPwC\u2019s Climate Tech Platform\nOur clients face the significant challenge of responding to \nthe environmental, social and technologically disruptive forces \nshaping the global marketplace, whilst they are still trying to \nperform in current markets as they transition to net zero and \ndelivery of the UN Global Goals. We work with our clients to navigate towards tech-enabled, \nsustainable futures."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 53, "chroma:document": "From net zero strategy development and \ntarget setting, market scanning and partner identification through \nto impact assessment and reporting, we help our clients meet \ntheir emerging needs on ESG. See our Climate page for more of \nour insights and to contact us."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 54, "chroma:document": "55  PwC | State of Climate Tech 2021\nAppendix 2: \nInvestment analysis methodology\nThis section explains key features in the methodology that we \nfollowed in our exercise to assess VC investment in climate tech. Our approach followed three broad steps:\nStep 1 was to establish boundaries for the analysis."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 54, "chroma:document": "These \nboundaries guided our analysis by defining what is and isn\u2019t a \nstart-up and what should be considered venture capital. Our \nboundary conditions included:\n\u2022  Time boundaries: We included start-ups formed at any date \nbut only examined funding that was raised from 2013 onwards. This time boundary was chosen based on qualitative \ndiscussions with interviewees and our own experience of the \nincreased interest in climate tech investment since 2013. \u2022  Funding boundaries: We included only start-ups that  \nhad raised at least US$1m. Start-ups smaller than this are \nnot unimportant to climate tech but are less able to be robustly \nassessed against our climate tech criteria, as many are \nstill pivoting their strategies in order to reach product and \nmarket fit. \u2022  Funding type boundaries: We filtered by round type to \ninclude only early-stage VC and private equity funding. IPOs, \nICOs and debt offerings were excluded from our analysis. Step 2 was to assess whether individual start-ups should be \nconsidered climate tech start-ups. This is not a black and \nwhite issue, and so we applied a set of guiding questions to \nassess whether start-ups were sufficiently climate tech\u2013focused:\n\u2022  Does the start-up have an emissions- or net zero\u2013focused \nstrategy? Start-ups publicly indicating that reducing emissions \nwas a clear objective for them were included in our analysis. \u2022  Does the start-up address a challenge area or lever of \ncritical importance to net zero? Start-ups tackling certain \nlevers seen as pivotal to emissions reduction, or with use \ncases almost exclusively focused on resource efficiency and \nemissions reduction, were marked as climate tech irrespective \nof meeting our first criteria\u2014for example, satellite operators \ngathering earth observation data that will be critical in \ninforming effective climate action and optimising resource use. \u2022  Will the start-up have a first-order impact on emissions? Start-ups that reduce emissions directly through their actions \nwere included in the analysis, while those that had second-\norder impacts were not included (unless they met our first \ncriteria). For an example of the latter, consider a manufacturer \nof AI-focused processors. These will potentially be useful for \nstart-ups using AI to address the net zero transition, but they \ndo not themselves directly contribute to emissions reduction \n(and depending on how they are applied, may indeed lead to \ngreater emissions). \u2022  Does the start-up show a level of innovation and/or use of \ntechnology?"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 54, "chroma:document": "Start-ups were expected to demonstrate that \nthey were developing or using innovative tools or techniques. For example, in alternative proteins, a company developing \nlab-grown meat would be considered sufficiently innovative, \nwhilst a company selling plant-based food supplements (in the \nabsence of any other form of major innovation) would not be \nincluded. Step 3 was to allocate start-ups to challenge areas and \nlevers."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 54, "chroma:document": "We assigned each start-up a primary challenge area and \nlever, based on the targeting of their products or services. We \ncontinually reviewed our taxonomy, making adjustments where \nwe found start-ups were not naturally aligning with our initially \nhypothesised framework. In some cases, start-ups provided solutions applicable to more \nthan one challenge area\u2014for example, development of EV \nbattery technology, which also supports grid management when \nconnected to the grid. In these cases, we adopted a pragmatic \napproach to classification by choosing the company\u2019s primary \nindustry of focus (Mobility and Transport in the prior example). Noteworthy start-ups: Our report discusses noteworthy \nstart-ups in certain levers."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 54, "chroma:document": "These were selected based primarily \non funding raised in the relevant period or those having the \nhighest valuation, as well as to display the diversity of offerings \nproduced under each lever."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 55, "chroma:document": "56  PwC | State of Climate Tech 2021\nAppendix 3: \nClimate tech taxonomy\nChallenge area\nFood \nAgriculture \nand Land Use\nChallenge area\nIndustry, \nManufacturing \nand Resource \nmanagement\nChallenge area\nClimate \nChange \nManagement \nand Reporting\nChallenge area\nGHG Capture, \nRemoval \nand Storage \nChallenge area\nFInancial \nServices\nChallenge area\nBuilt \nEnvironment\n\u2022  Alter native Foods/Low GHG Proteins\n\u2022  V ertical and Urban Farming (including aquaponics)\n\u2022  Agricultural Biotech/Genomics and Natural \nSolutions\n\u2022  Pr ecision Agriculture and Robotics \n\u2022  Low GHG/Ener gy Efficient Equipment \n\u2022  Earth and Marine Pr otection \n\u2022  Land Use Management\n\u2022  Low GHG Chemicals (beyond plastics)\n\u2022  Low GHG Ir on, Steel, Aluminium\n\u2022  Low GHG Plastics or Alter natives\n\u2022  Low GHG Concr ete and Alternatives for \nConstruction\n\u2022  Ener gy/Resource Efficient Manufacturing \nProcesses\n\u2022  Low GHG Extraction, Supply and Maintenance\n\u2022  T ransformative Circularity, Recycling and Low  \nGHG/Efficient Materials \n\u2022  W aste Management Technology\n\u2022  Industrial Residuals T reatment and Management\n\u2022  Emissions Data, Monitoring, Management and \nReporting\n\u2022  Climate Risk and Resilience Management\n\u2022  Climate/Earth Data Generation\n\u2022  Carbon Captur e, Uptake and Storage (CCUS)\n\u2022  Biomass Update of CO2 (excluding afforestation \nand land management)\n\u2022  Geo-engineering\n\u2022  Lenders\n\u2022  Banking (business + r etail)\n\u2022  Funds and Investment Banking\n\u2022  Pensions\n\u2022  Insurance\n\u2022 High Efficiency Fixtur es and Fittings\n\u2022  High Efficiency Space/W ater Heating and Cooling \n\u2022  Smart Management of Devices\n\u2022  Building Level (electricity and thermal) Storage\n\u2022  Low GHG Construction Pr ocesses\n\u2022  High Efficiency Lighting\n\u2022  High Efficiency Urban Spaces and Communities\n\u2022  T ransformative Circularity and Recycling \n\u2022  Commer cial and Residential Residuals Treatment \nand Management\nChallenge area\nEnergy\n\u2022 Renewable Ener gy Generation\n\u2022 Nuclear Generation\n\u2022 Grid Management\n\u2022  W aste Heat Capture/Conversion/Storage\n\u2022 Alter native Fuels \n\u2022 Ener gy Storage (thermal or electricity) \n\u2022 Low GHG Extraction and Maintenance \n\u2022  High Efficiency Ener gy Intensive Electronic and \nSmart Monitoring / Management\nChallenge area\nMobility and  \nTransport\n\u2022 Low GHG Air T ransport \n\u2022 Low GHG Shipping \n\u2022 Micr o-mobility\n\u2022  Low GHG Light and Heavy Duty T ransport: \nEVs and High-Efficiency Vehicles \n\u2022 Efficient T ransport Systems\n\u2022 T ravel Alternatives (VR, teleworking)\n\u2022 Batteries/Fuel Cells"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: e1582ac3-aa92-4989-a3c1-b3028a0fc201
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 56, "chroma:document": "57  PwC | State of Climate Tech 2021\nAppendix 4: \nImpact analysis detailed approach\nPurpose of our analysis\nIn our impact analysis section, we looked for the carbon funding \ngap, assessing the funding raised by a subset of climate \ntechnologies against their climate impact potential. To determine \nclimate impact potential, we examined the emissions reduction \npotential (ERP) of each technology, looking in particular at \ncumulative ERP to 2050. This analysis determined whether \ncapital is being allocated in line with climate impact. Further, \ncomparison between these data points and a technology\u2019s \nmaturity will enable investors to identify investment \nopportunities, balancing current technological and business \nmodel risk with large potential future addressable markets as the \nmandate for climate action increases across challenge areas and \ngeographies. Methodology\nSelecting the 15 climate technologies\nBuilding on our existing taxonomy, we homed in on 15 climate \ntechnology areas centred around real-world applications, using a \nthree-step process: \nStep 1: Identify technology areas with the most funding raised \nacross all challenge areas over the analysis period to create a \nlonglist. Step 2: Complete additional research to identify and add nascent \ntechnologies in hard-to-abate sectors, as well as technologies \nthat may play a greater role in the future energy mix.88 \nStep 3: Test and iterate the longlist with internal and external \nindustry experts to arrive at a shortlist of 15 technology areas.89 \nTechnology areas90 91\n1. Wind power\n2."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 56, "chroma:document": "Solar power\n3."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 56, "chroma:document": "Ocean & tidal \npower\n4. Gr een hydrogen \nproduction\nMobility and Transport\nGHG Capture, Removal, and Storage\nCarbon Management and Reporting\nEnergy Food, Agriculture \nand Land Use\nIndustry, Manufacturing \nand Resource \nMmanagement\nBuilt Environment Financial Services\n5. Light duty battery \nevs\n6."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 56, "chroma:document": "Micr o mobility\n7."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 48ebd86f-c241-47ed-b6db-6bb2227f1405
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 56, "chroma:document": "Low GHG shipping\n8. Sustainable \naviation fuels (SAFs)\n9. Pr ecision agriculture\n10. Food  \nwaste technology\n11. Alter native foods/  \nlow GHG proteins\n12. Low GHG ir on and \nsteel\n13. Low GHG concr ete \nand cement\n12. Low GHG ir on \nand steel\n13. Low GHG \nconcrete and \ncement\nN/A\n14. CCUS in Power\n15. Direct Air Capture / Storage (DAC/S)\nN/A"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 2a074992-7b65-4d5d-aa7f-82ddb714c729
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 57, "chroma:document": "58  PwC | State of Climate Tech 2021\nTechnology area maturity\nTechnology maturity is defined here by determining the \ntechnology readiness level (TRL), sourced from academic or grey \nliterature.92 Building on individual TRLs, our technology areas are \nranked on a scale from prototype (TRL 4-6), to demonstration \n(TRL 7-8), to commercial adoption (TRL 9+), based on the \naggregated TRLs of individual technological applications and \nprocesses in that technology area. Key assumptions\n1   Given the rapidly evolving natur e of technology R&D in both \npublic and private spheres, estimates of maturity may have \nevolved by the time of publication. 2   Whilst technology ar eas at TRL 9+ have proven themselves in \na commercial environment and are ready to be proven at \nscale, the time it takes to achieve significant market \npenetration for individual technologies can vary from several \nyears to decades, depending on factors such as capex \nrequirements and unit costs, national policy environments, \ntotal investment and technical performance. 3   Wher e a technology area has a broader definition, we have \nestimated a midpoint TRL maturity score based on a \nconfluence of factors and input from industry experts to \nenable meaningful comparison. Proximity to tipping point\nThe idea of positive tipping points is understood as a point \nbeyond which sufficient market uptake of a particular technology, \naction or idea has been achieved, exponential progress is \nexpected to ensue, and system transformation of the sector is \ninevitable.93  The basis of the United Nations Framework \nConvention on Climate Change\u2019s Race2Zero Breakthroughs \nreport, which identified 20 breakthrough outcomes (also called \nsector-specific tipping points), is to enable collaboration in and \nacross sectors to enable producers, investors and customers to \nmonitor progress towards common climate and technology \ngoals. 94  The UNFCCC sectoral tipping points are aligned to the \nClimate Action Pathways set by the Marrakech Partnership to \nlimit global warming to 1.5\u02daC. Here we build on the work by the UNFCCC and propose \nanalogous tipping points for each of our 15 climate technology \nareas. Using a combination of qualitative and quantitative \nsources for each technology area, a proximity to tipping point is \nestimated on a three-point scale: \n\u2022  Low (tipping point to be achieved by 2025). \u2022  Medium (tipping point to be achieved by 2035)."}


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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 57, "chroma:document": "\u2022  High (tipping point to be achieved beyond 2040). Key assumptions\n1   Pr oposed tipping points are high-level and directional. Individual technology areas in a particular geography may \nachieve their sectoral tipping points earlier or later, driven by \ndifficult-to-predict technological breakthroughs or shifting \npolicy environments. Emissions reduction potential (ERP)\nTo assess the potential climate impact of each technology area, \nwe provided an estimate for the cumulative CO2 equivalent \nemissions reduced or sequestered between 2020 and 2050, in \ngigatons. Where possible, we have used sources with defined \nand documented scenarios and assumptions, drawing primarily \non the work of Project Drawdown.95  Given the long-term nature \nof the projections, the inherent uncertainty in ERP estimates is \nunderstandably very high. However, the estimates enable \ncomparison between different climate technology solutions and \ncan provide a useful indicator of the relative total available \nmarket for each. Where ERP values are quoted from outside of \nProject Drawdown (e.g."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 15833d05-f6cc-41d8-8cb9-eda7a66439db
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 57, "chroma:document": "from academic or grey literature), these \nsources are referenced. Key assumptions\n1   A verage values between two available Project Drawdown \nscenarios are used, where applicable. Drawdown Scenario 1 \nis roughly in line with a 2\u02daC temperature rise by 2100, while \nDrawdown Scenario 2 is roughly in line with a 1.5\u02daC \ntemperature rise.96  \n2   ERP values shown here may be an underestimate. With \nincreased VC investment or technological and/or policy-\ndriven breakthroughs, the earlier commercialisation of many \nindividual technologies is possible, therefore abating even \ngreater emissions than those projected by current scenarios \nquoted here."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: cc5f764d-8e69-4ad7-9394-54dc54817b0f
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 57, "chroma:document": "3   Second-order effects, such as synergies and multipliers, \nwhere progress in one technology area will benefit another, \nare not considered (for example, the continued development \nof energy storage technologies as a key accelerant and \nnecessary partner for the uptake for renewable energy)."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 04cbff70-25e2-4415-bc06-66bbfbbedf00
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 57, "chroma:document": "Multiplier effects can be strong and greatly reduce the time to \nmarket for individual technologies, but they are difficult to \npredict, and so have not been considered. Sources for ERP\nERP values for most technology areas were sourced from Project \nDrawdown. Average values between the two available Drawdown \nscenarios are shown on the charts in section 7."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 78ffd986-8189-4110-b4d5-d10262fa0c7b
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 58, "chroma:document": "59  PwC | State of Climate Tech 2021\nImpact technology (Project Drawdown \nconstituent solutions)\nWind power: onshore wind turbines, offshore wind turbines\nSolar power: distributed solar, utility-scale solar photovoltaics, \nconcentrated solar power\nOcean and tidal power: ocean power\nSustainable aviation fuels: efficient aviation \nLight-duty battery EVs: electric cars, hybrid cars\nLow GHG concrete: alternative cement\nFood waste technology: reduced food waste\nPrecision agriculture: farm irrigation efficiency, nutrient \nmanagement efficiency\nLow GHG shipping: efficient ocean shipping\nAlternative foods / low GHG proteins: plant rich diets\nMicro mobility: electric bicycles\nAdditional sources \nGreen hydrogen production: The Hydrogen Council estimates \nthat the hydrogen economy will reduce annual CO2 emissions by \nroughly 6 gigatons by 2050 compared to today\u2019s technologies. The IEA Net Zero Emissions scenario projects growing hydrogen \nproduction between 2020 and 2050, with 11% of production \nfrom low-carbon forms in 2020, rising to 99% by 2050."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 280d3002-ec38-4826-acef-e09459af27ae
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 58, "chroma:document": "We \nassume a constant GHG intensity of low-carbon hydrogen \nbetween now and 2050 and linear growth of production between \ndecades where data is provided by the IEA. Using these \nassumptions of growth and emissions reductions per year \ncompared to today\u2019s technologies (zero tonnes in 2020 and up to \n6 gigatons by 2050), we find the total ERP of the hydrogen \neconomy to be around 88 gigatons between 2020 and 2050. CCUS in power and DAC/S: The IEA Net Zero Emissions \nscenario estimates global CO2 capture by source. We assume \nlinear growth of CO2 capture between decades where data is \nprovided by the IEA. Using this assumption, we find the total \nERP for CCUS in power and DAC/S to be around 28 gigatons \nand 12.5 gigatons, respectively, between 2020 and 2050. Low GHG iron and steel: Cumulative emissions reductions \nbetween 2020 and 2050 for iron and steel as stated in the IEA\u2019s \nSustainable Development Scenario."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: ffe1aa49-1416-4eb9-86c5-a8a175193411
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 58, "chroma:document": ""}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: fd40006e-476e-4906-959a-c6b114fce9ca
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 59, "chroma:document": "60  PwC | State of Climate Tech 2021\nEndnotes\n1. PwC, EU Private Markets: ESG Reboot, Nov 17 2021, https://www.pwc.lu/en/sustainable-finance/eu-private-markets-esg-reboot.html \n2. GlobeNewswire, Brookfield Announces Initial US$7 Billion Closing for Brookfield Global Transition Fund, Jul 27 2021,  \nhttps://www.globenewswire.com/news-release/2021/07/27/2269263/0/en/Brookfield-Announces-Initial-US-7-Billion-Closing-for-Brookfield-Global-Transition-Fund.html \nhttps://bam.brookfield.com/press-releases/brookfield-announces-initial-us7-billion-closing-brookfield-global-transition-fund\n3. Henry Sanderson, TPG $5.4bn climate fund backs long-duration battery start-up, Aug 23 2021 \n4. H1 indicates the first six months of a calendar year (January-June) and H2 indicates the second (July-December)\n5. PwC, Unlocking investment for Net Zero infrastructure, Dec 9 2021   \nhttps://www.pwc.co.uk/industries/real-estate-and-infrastructure/real-assets/infrastructure-investment-in-net-zero.html \n6. UNFCCC Climate Champions, World leaders join UK\u2019s Glasgow Breakthroughs to speed up affordable clean tech worldwide, (Oct 2021)  \nhttps://racetozero.unfccc.int/world-leaders-join-uks-glasgow-breakthroughs-to-speed-up-affordable-clean-tech-worldwide/ \n7. The White House, Fact Sheet: The Bipartisan Infrastructure Deal, Nov 06 2021  \nhttps://www.whitehouse.gov/briefing-room/statements-releases/2021/11/06/fact-sheet-the-bipartisan-infrastructure-deal/\n8. European Commission, Commission, Breakthrough Energy Catalyst and European Investment Bank advance partnership in climate technologies, Nov 02 2021  \nhttps://ec.europa.eu/commission/presscorner/detail/en/ip_21_5586\n9. For example, in the Food, Agriculture and Land Use challenge area, there exist net zero levers of alternative proteins, vertical farming and agricultural biotech, amongst \nothers. 10. IPPC, Key Economic Sectors and Services, Dec 9 2021 https://www.ipcc.ch/report/ar5/wg2/key-economic-sectors-and-services/ \n11. See the appendix for more detail on PwC\u2019s Climate Tech Platform."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: e9ccb75c-25d2-46a2-a21f-154778695a8f
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 59, "chroma:document": "12. Historical funding figures differ from those provided in State of Climate Tech 2020  \nhttps://www.pwc.com/gx/en/services/sustainability/publications/state-of-climate-tech-2020.html, owing to enhancements in the underlying datasets. 13."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 416d9217-5971-4973-a3a9-74a33db219d0
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 59, "chroma:document": "There is not a consistent market definition of what defines a unicorn. For the purposes of this report, we define a unicorn as any start-up valued at US$1bn or greater \nthat is not publicly-traded nor fully acquired as of H1 2021 (including PE-backed start-ups). Valuation data is sourced from Dealroom.co and media reports, and have \nnot been verified by PwC."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: d19246f9-b0ca-44a1-82e8-74bf21d30724
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 59, "chroma:document": "14. Bill Gates interview, SOSV Climate Tech Summit, Oct 13 2021 \n15. Nicholas Earl, BlackRock CEO predicts a thousand sustainable \u2018unicorns\u2019, Oct 25 2021,  \nhttps://www.cityam.com/blackrock-ceo-predicts-a-thousand-sustainable-unicorns/\n16. \u2018Early VC\u2019 is the default label for rounds of US$1m to US$10m with no self-reported label. 17."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 70e98032-b556-4363-8988-881d2b9c2568
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 59, "chroma:document": "EIP , Climate Tech Index, Dec 09 2021 https://eipclimateindex.com/\n18. Sequoia, The Sequoia Fund: Patient Capital for Building Enduring Companies, Oct 26 2021 \nhttps://medium.com/sequoia-capital/the-sequoia-fund-patient-capital-for-building-enduring-companies-9ed7bcd6c7da\n19. Axios, Scoop: Sequoia Capital just blew up the VC fund model, Oct 26 2021 https://www.axios.com/sequoia-capital-fund-venture-capital-model-36425923-deff-430e-\n9945-09b0ccb69c78.html \n20. World Resource Institute, Four Charts Explain Greenhouse Gas Emissions by Countries and Sectors, Feb 06 2020\n21. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020  \nhttps://ourworldindata.org/co2-and-other-greenhouse-gas-emissions. ."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: bbcfb4a4-a064-468d-a241-52c47532f599
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 59, "chroma:document": "22. World Resource Institute, Everything You Need to Know About the Fastest-Growing Source of Global Emissions: Transport, Oct 16 2019\n23. PwC, The green hydrogen economy, Predicting the decarbonisation agenda of tomorrow, Dec 09 2021  \nhttps://www.pwc.com/gx/en/industries/energy-utilities-resources/future-energy/green-hydrogen-cost.html \n24. Edie, Mobility platforms commit to zero-emissions manifesto for 2035, Sep 21 2021  \nhttps://www.edie.net/news/8/Mobility-giants-commit-to-zero-emissions-manifesto-for-2035/ \n25. Please refer to Appendix 2 for details on how these were selected."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 16fb46b5-94fa-4df0-82fb-89c6749fa79f
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 59, "chroma:document": "26. European Commision, Reducing emissions from the shipping sector, Dec 08 2021, \n27. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020 Much of emissions from energy use (totalling 73.2%) can also be \nattributed meaningfully to other primary sectors such as Mobility and Transport; Industry, Manufacturing and Resources; and Built Environment. However, emissions \nfrom energy use across all these sectors can be addressed by many of the climate tech solutions identified under this challenge area. For reference, GHG emissions \nthat are attributable only to the production of energy, including fugitive emissions, represent 13.6% of global emissions."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: a87b0b25-9691-487d-91ab-912c423a27d8
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 60, "chroma:document": "61  PwC | State of Climate Tech 2021\n28. IEA, With only 2% of governments\u2019 recovery spending going to clean energy transitions, global emissions are set to surge to an all-time high, Jul 20 2021  \nhttps://www.iea.org/news/with-only-2-of-governments-recovery-spending-going-to-clean-energy-transitions-global-emissions-are-set-to-surge-to-an-all-time-high\n29. IRENA, Renewable Power Generation Costs in 2020, Jun 2021: https://www.irena.org/publications/2021/Jun/Renewable-Power-Costs-in-2020 \n30. Elle Hardy, Aussie start-up creates world\u2019s most efficient solar cell, Oct 4 2021 https://createdigital.org.au/aussie-startup-creates-worlds-most-efficient-solar-cell/\n31. Davide Castelvecchi, Electric cars and batteries: how will the world produce enough?"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 72cd30b7-72fb-4927-90b5-515b8176673b
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 60, "chroma:document": "Aug 12 2021\n32. Liebreich Associates, The Clean Hydrogen Ladder, Aug 15 2021 https://www.linkedin.com/pulse/clean-hydrogen-ladder-v40-michael-liebreich/ \n33. PwC, The Green Hydrogen Economy, 2021 https://www.pwc.com/hydrogen \n34. European Commission, In focus: Hydrogen \u2013 driving the green revolution, Apr 14 2021,  \nhttps://ec.europa.eu/info/news/focus-hydrogen-driving-green-revolution-2021-abr-14_en \n35. European Commission, Sustainable aviation fuels \u2013 ReFuelEU Aviation, 2021,  \nhttps://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12303-Sustainable-aviation-fuels-ReFuelEU-Aviation_en\n36. World Energy Council, in collaboration with EPRI and PwC, HYDROGEN ON THE HORIZON: READY , ALMOST SET, GO?, Sep 2021  \nhttps://www.worldenergy.org/assets/downloads/Working_Paper_-_National_Hydrogen_Strategies_-_September_2021.pdf\n37. HM Government, UK Hydrogen Strategy, Aug 17 2021 https://www.gov.uk/government/publications/uk-hydrogen-strategy\n38. PwC Strategy&, The dawn of green hydrogen, Dec 10 2021 \nhttps://www.strategyand.pwc.com/m1/en/reports/2020/the-dawn-of-green-hydrogen/the-dawn-of-green-hydrogen.pdf\n39. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020 https://ourworldindata.org/co2-and-other-greenhouse-gas-emissions."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: b29fb35b-01b4-4d32-b6ba-7cf21bfa7be4
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 60, "chroma:document": "40. Crippa, Solazzo, Guizzardi, Monforti-Ferrario, Tubiello and Leip, Food systems are responsible for a third of global anthropogenic GHG emissions, Mar 08 2021 \nhttps://www.nature.com/articles/s43016-021-00225-9 \n41. Mario Herrero and Philip K. Thornton, Livestock and global change: Emerging issues for sustainable food systems, Dec 24 2013  \nhttps://www.pnas.org/content/110/52/20878.full \n42. Vliet, Kronberg and Provenza, Plant-Based Meats, Human Health, and Climate Change, Oct 06 2020 \n https://www.frontiersin.org/articles/10.3389/fsufs.2020.00128/full\n43. The Food Institute, Jun 22 2020 https://foodinstitute.com/focus/edible-insect-market/ \n44. Kate Whiting, World Economic Forum,How soon will we be eating lab-grown meat? Oct 16, 2020 | \nhttps://www.weforum.org/agenda/2020/10/will-we-eat-lab-grown-meat-world-food-day/ \n45. Nature, Revamp of UK CRISPR regulation will require public trust, Mar 16 2021 https://www.nature.com/articles/d41586-021-00672-1\n46. Our World in Data, Food waste is responsible for 6% of global greenhouse gas emissions, Mar 18 2020 https://ourworldindata.org/food-waste-emissions \n47. Poore and Nemecek, Reducing food\u2019s environmental impacts through producers and consumers, Jun 01 2018  \nhttps://ora.ox.ac.uk/objects/uuid:b0b53649-5e93-4415-bf07-6b0b1227172f \n48. FAO, FOOD LOSS AND WASTE IN THE FOOD SUPPLY CHAIN, July 2017 http://www.fao.org/3/bt300e/bt300e.pdf \n49. FAO, Global food losses and food waste, 2011 https://www.fao.org/3/mb060e/mb060e.pdf \n50. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020 https://ourworldindata.org/co2-and-other-greenhouse-gas-emissions\n51. Climate Group, Steel Zero, Dec 08 2021 https://www.theclimategroup.org/steelzero\n52. Our World in Data. Global GHG Emissions by Sector, 2016 https://ourworldindata.org/emissions-by-sector\n53. Another start-up, Katerra, was previously valued at over US$1bn but has since filed for bankruptcy."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 60, "chroma:document": "54."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 74296457-46dc-406f-b7c7-e5e2a584a9a3
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 60, "chroma:document": "Edie, Time to build our infrastructure on green foundations, Oct 10 2021  https://www.edie.net/blog/Time-to-build-our-infrastructure-on-green-foundations/6098957 \n55. Mark Evans, Finance sector funds emissions over 700 times greater than its own, Apr 29 2021 https://bettersociety.net/CDP-finance-sector-GHG-indirect.php\n56. World Economic Forum, The Global Risks Report 2021,16th Edition, 2021 https://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2021.pdf\n57. HM Treasury, UK Government Green Financing Framework, June 2021,  \nhttps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1002578/20210630_UK_Government_Green_Financing_Framework.pdf\n58."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 905f0768-1a5c-452e-ae68-d621497659c0
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 60, "chroma:document": "IPCC, Sixth Assessment Report, August 09 2021 https://www.ipcc.ch/assessment-report/ar6/\n59. One start-up in this challenge area, LanzaTech, is currently tagged a rumoured unicorn on the Dealroom platform, as there are unconfirmed media reports that they may \nhave previously raised funding at a US$1bn valuation. 60."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 261ed3c5-38a8-459a-90a0-0880ea81c129
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 60, "chroma:document": "Christian Aid, Counting the cost of 2020: a year of climate breakdown, Dec 2020,  \nhttps://www.christianaid.org.uk/sites/default/files/2020-12/Counting%20the%20cost%202020.pd\n61. Of the total North America funding, the majority is tagged to the US (US$55.1bn) while US$1.4bn is tagged to Canada."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 0e47f1fd-53e8-4ae2-a2a4-d71e2b6cc0d3
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 60, "chroma:document": "62. Yingwei Fu, After the Mania, China\u2019s VC Investment is Cooling Down, Dec 08 2021, https://equalocean.com/analysis/2019100412026\n63. Financial Times, China\u2019s state-owned venture capital funds battle to make an impact, Dec 08 2021 https://www.ft.com/content/4fa2caaa-f9f0-11e8-af46-2022a0b02a6c "}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 8fa5c456-579e-4b0b-a839-a4a83765554b
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "62  PwC | State of Climate Tech 2021\n64. Georgina Lee, Climate Change: China\u2019s central bank unveils lending facility to spur funding for carbon-reduction projects in net zero drive, Dec 08 2021, \nhttps://finance.yahoo.com/news/climate-change-chinas-central-bank-093000347.html\n65. PwC, Unlocking investment for Net Zero infrastructure, 2021 https://www.pwc.co.uk/industries/real-estate-and-infrastructure/real-assets/infrastructure-investment-in-\nnet-zero.html \n66. UNFCCC Climate Champions, World leaders join UK\u2019s Glasgow Breakthroughs to speed up affordable clean tech worldwide,Oct 2021  \nhttps://racetozero.unfccc.int/world-leaders-join-uks-glasgow-breakthroughs-to-speed-up-affordable-clean-tech-worldwide/ \n67. Detailed methodology and approach to our impact analysis is outlined in the appendix."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 23914ba2-dcef-40b2-becc-65e766f9e220
encoding: FLOAT32
metadata:
{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "68. IEA, Net Zero by 2050, 2021 https://www.iea.org/reports/net-zero-by-2050 \n69. Financial Services; GHG Capture, Removal and Storage; and Climate Change Management and Reporting are not included in the graph as they are not sector areas \nthat contribute direct emissions. 70. Global GHG emissions of 49.4 Gt CO2e in 2016. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020  \nhttps://ourworldindata.org/co2-and-other-greenhouse-gas-emissions. 71."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "PwC UK, Unlocking capital for Net Zero infrastructure, 2020 https://www.pwc.co.uk/assets/document/Unlocking-capital-for-net-zero-PwC-Nov-2020.pdf\n72. IEA, ETP Clean Energy Technology Guide, 2021 https://www.iea.org/articles/etp-clean-energy-technology-guidesupplemented by academic and grey literature as well \nas internal PwC industry and sectoral expertise. 73."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "Technology areas with TRLs 1-3 were considered too immature for this analysis. 74. Solar power, wind power, food waste technology, green hydrogen production, and alternative foods/low GHG proteins\n75. The ERP values shown are based on current adoption scenarios. Increased investment powering technological breakthroughs or favourable policy decisions could \nsignificantly reduce the time to market. This would enable individual technology areas to achieve much greater ERP by 2050 than is estimated here. 76."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "Light-duty battery EVs not shown on charts in this section as it would skew the scale (total funding in excess of US$70bn)\n77. A Gigacorn is defined as a company that has achieved lowering or sequestering CO2 emissions by 1 gigaton a year while being commercially viable. Christian \nHernandez, On Gigacorns and Sustainability Tech, Jul 6 2020 https://christianhern.medium.com/on-gigacorns-and-sustainability-tech-8b24efd04d00\n78. In this chapter we refer to emissions reduction potential. Though we use reduction, this term references both emissions removed (for example, direct air capture and \nafforestation) and avoided (for example, CCUS and alternative proteins), through both technological and nature-based solutions. 79."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "IEA, World Energy Balances Database, 2018, https://www.iea.org/reports/world-energy-balances-overview\n80. Micromobility (<5 Gt CO2e ) and light-duty battery EVs (~20 Gt CO2e) have been omitted due to their outsized total funding which would skew the scale. 81."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 9a535f98-9d8c-4601-b351-ad206cab7eee
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "Chart excludes light-duty battery EVs as it skews the scale\n82. Dealroom, Global venture capital is crushing all records in 2021, Jul 7 2021 https://dealroom.co/blog/global-venture-capital-is-crushing-records-in-h1-2021\n83. Prime Minister\u2019s Office, World leaders join UK\u2019s Glasgow Breakthroughs to speed up affordable clean tech worldwide, Nov 2 2021  \nhttps://www.gov.uk/government/news/world-leaders-join-uks-glasgow-breakthroughs-to-speed-up-affordable-clean-tech-worldwide\n84. World Economic Forum, First Movers Coalition, 2021 https://www.weforum.org/first-movers-coalition \n85. In a recent joint report with the World Economic Forum, PwC assessed the impacts of international carbon pricing scenarios on economies and industries to help inform \nthe debate and provide insights to governments, businesses, and civil society looking for solutions for reducing carbon emissions. World Economic Forum, Increasing \nClimate Ambition: Analysis of an International Carbon Price Floor, 2021 https://www.pwc.com/gx/en/services/sustainability/assets/economic-impact-of-a-carbon-price-\nfloor.pdf  \n86. OECD, Tax and the Environment, Dec 08 2021 https://www.oecd.org/tax/tax-policy/tax-and-environment.htm  \n87. International Energy Agency, Tracking CCUS in Power 2020, Jun 2020 https://www.iea.org/reports/tracking-ccus-in-power-2020\n88. Technology focus areas were identified from the UK\u2019s Net Zero Innovation Portfolio (NZIP) and IEA Net Zero by 2050 report. 89."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "See appendix 2 for a list of the inclusion and exclusion criteria for each technology area. 90. The technologies chosen for the impact assessment are at application level (for example, solar power) rather than sector level (for example, renewables). 91. Technologies from the Financial Services and Climate Change Management and Reporting challenge areas were excluded as they are defined as enabling technologies \nthat do not directly lead to emissions reductions. 92."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 61, "chroma:document": "Main source: IEA Energy Technology Perspectives supplemented by academic and grey literature as well as internal PwC industry and sectoral expertise. 93. University of Exeter, Our Positive Tipping Points are bringing change to the climate crisis, Dec 08 2021 https://www.exeter.ac.uk/research/tippingpoints/\n94. UNFCCC, Race to Zero Breakthroughs, 2021 https://racetozero.unfccc.int/wp-content/uploads/2021/02/Race-to-Zero-Breakthroughs-Transforming-Our-Systems-\nTogether.pdf\n95. Source: Project Drawdown. Note: Project Drawdown conducts an ongoing review and analysis of climate solutions\u2014the practices and technologies that can stem and \nbegin to reduce the excess of greenhouse gases in our atmosphere. 96. Project Drawdown, Solutions, Dec 08 2021, https://drawdown.org/solutions"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 62, "chroma:document": "This publication has been prepared for general guidance on matters of interest only, and does not constitute \nprofessional advice. You should not act upon the information contained in this publication without obtaining specific \nprofessional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness \nof the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP , \nits members, employees and agents do not accept or assume any liability, responsibility or duty of care for any \nconsequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this \npublication or for any decision based on it. \u00a9 2021 PricewaterhouseCoopers LLP ."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/Data_pwc-state-of-climate-tech-report.pdf", "page": 62, "chroma:document": "All rights reserved. In this document, the terms \u2018PwC\u2019, \u2018our\u2019 and \u2018we\u2019 refer \nto the UK member firm, or, as the context requires, to the network of member firms of PricewaterhouseCoopers \nInternational Limited or to one or more member firms. Please see www.pwc.com/structure for further details. www.pwc.com/climatetech"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 0, "chroma:document": "8/11/23, 10:08 AM 5 Steps to Get Industries on Track for Net Zero | Accenture\nhttps://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 1/8\nAccenture Energy Blog\nFive steps to get industries on track fornet zeroJULY 29, 2022\nSHARE \uf239 \uf243 \uf231\nNet-zero emissions by 2050 cannot be achieved without radically accelerating the\ndecarbonization of heavy industries. The World Economic Forum\u2019s \u0000irst Net-Zero Industry Tracker, developed in collaboration with\nAccenture, reveals the scale of the challenge and sheds light on how industries can get on track\nfor net zero."}


created_at: 2025-04-28 00:40:34
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 0, "chroma:document": "Addressing data gaps will improve visibility on solution levers and accelerate the pace of progress."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 0, "chroma:document": "Actions that will advance the technologies, infrastructures, demand signals, policies and\ninvestments required for net-zero success are even more urgent. An industrial-scale problem\u2026\nToday, industrial sectors account for nearly 40% of global energy consumption and more than 30% of\nglobal greenhouse gas emissions. The \u0000ive industries of steel, cement, aluminum, ammonia as well as oil\nand gas generate approximately 80% of these emissions. Demand for energy and industrial products is\nforecasted to increase by further 30% to 80% by 2050. If the decarbonization of industries does not\nradically pick up pace, industrial emissions will only rise with demand. This would mean the world\u2019s\nambition to achieve net zero can be pushed further out of reach. \u2026 Requires an industrial-grade solution\nThere will be no net-zero future if industries don\u2019t decarbonize. It is imperative to understand the scope of\nthe challenge, the variety of opportunities for industry sectors, and to comprehensively and consistently\n\uf4a5"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 1, "chroma:document": "8/11/23, 10:08 AM 5 Steps to Get Industries on Track for Net Zero | Accenture\nhttps://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 2/8\ntrack the progress on industrial decarbonization. For this purpose, the World Economic Forum recently launched the Net-Zero Industry Tracker to raise\ntransparency and accelerate industrial transformation. This initiative o\ufb00ers a comprehensive framework\nfor monitoring industries\u2019 progress towards net zero. On top of that, it provides insights to inform industry\nleaders, policymakers and consumers about actions that are the most critical and most e\ufb00ective. 5 actions for 5 industries\u00a0\nBased on insights from the Tracker\u2019s inaugural report, here are \u0000ive recommendations for stakeholders of\nthe \u0000ive industries that produce the most industrial emissions:\n\ue450. De\u0000ine \u201clow-emission\u201d production thresholds to direct decarbonization trajectories\nNet-zero targets are necessary to set long-term ambitions, but they are insu\u0000icient to drive year-\nover-year progress."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 1, "chroma:document": "For basic materials as well as oil and gas, international sustainability standards\nCLICK TO ENLARGE IMAGE \ue800\n\uf4a5"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 2, "chroma:document": "8/11/23, 10:08 AM 5 Steps to Get Industries on Track for Net Zero | Accenture\nhttps://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 3/8\nneed to establish emission intensity thresholds that anchor what \u201clow-emission\u201d production in a net-\nzero world looks like. These thresholds should be technology agnostic and account for varying\nproduct speci\u0000ications, such as clinker ratio in cement or scrap content in aluminum or steel. Industry standards such as the Aluminium Stewardship Initiative or Responsible Steel alongside\nmulti-stakeholder collaboration (such as the IEA's recommendations for achieving net zero heavy\nindustry sectors in G7 members) will be essential to de\u0000ine thresholds within each sector. At present, across all \u0000ive industries, the gap to meet the 2050 emission thresholds outlined in the\nIEA Net Zero by 2050 Scenario is considerable."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 2, "chroma:document": "\ue451. Set a public-private investment agenda to decrease the cost of clean technology\nMany low-emission production technologies have been demonstrated at scale and can drastically\nreduce emissions, for example -80% for natural gas, -95% for cement plus steel and -100% for\nammonia. However, these technologies are much costlier than traditional alternatives. At the\ncurrent pace of development, low-carbon technologies won\u2019t be commercially ready, let alone\ncompetitive, before the second half of the decade, which would mean 2025 for steel, and after\n2030 for cement and aluminum. Moving forward, economies of scale, e\u0000iciency gains and further\ninnovations are likely to drive costs down."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 2, "chroma:document": "But this can only happen if more full-scale projects are\ndeveloped. Public and private sectors should come together to rapidly multiply such projects\naround the globe. CLICK TO ENLARGE IMAGE \ue800\n\uf4a5"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 3, "chroma:document": "8/11/23, 10:08 AM 5 Steps to Get Industries on Track for Net Zero | Accenture\nhttps://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 4/8\n\ue452. Promote low-carbon demand and establish transparency and visibility among producers\nDecarbonizing industries has estimated capital requirement of over 2 trillion USD in capital\nexpenditure by 2050."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 3, "chroma:document": "Such investments can only materialize if demand and green premiums for low-\nemission products exist to grant producers and investors the returns they require. As of now, the\nwillingness and ability of consumers to pay premiums have not been demonstrated. It is critical for\nindustry stakeholders to strengthen and scale-up demand signals for low-emission products. Public\nand private buyers\u2019 commitments are essential to provide visibility on green products\u2019 o\ufb00take\nvolume and price (for example the First Movers Coalition and Clean Energy Ministerial IDDI). Carbon\nfootprint product labelling standards can also help di\ufb00erentiate materials and incentivize consumers\nto pay premiums. \ue453."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 3, "chroma:document": "Strengthen policies and regulations to level the playing \u0000ield for low-carbon producers\nCLICK TO ENLARGE IMAGE \ue800\n\uf4a5"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 4, "chroma:document": "8/11/23, 10:08 AM 5 Steps to Get Industries on Track for Net Zero | Accenture\nhttps://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 5/8\nMaintaining global competitiveness is a top priority for industry leaders and governments. First\nmovers investing in higher-cost, low-emission production facilities assume a higher risk of seeing\ntheir competitive positions deteriorate."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 4, "chroma:document": "Stable and ambitious policy frameworks are necessary to\nlevel the playing \u0000ield and incentivize \u0000irms to venture into low-carbon markets while governments\nneed to facilitate the emergence of economically viable ones. Carbon pricing combined with a\nborder-adjustment mechanism is one potential approach that limits the risk of carbon leakage. Others include carbon contracts, preferential public procurement (like the California Buy Clean Act),\nmaterial mandates or quotas."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 4, "chroma:document": "\ue454. Develop risk-sharing mechanisms, green taxonomies, and public funding to de-risk investments\nand attract capital\nMark Carney, former governor of the Bank of England and UN Special Envoy on Climate Action and\nFinance, declared at Davos this year: \u201cWe need an energy transformation on the scale of the\nindustrial revolution at the speed of the digital transformation. And therefore, we need a revolution\nin \u0000inance.\u201d\nThe need for capital to decarbonize industries is immense. For instance, the additional capital\nexpenditure required is equivalent to recapitalizing 40% of the steel industry. To reduce companies\u2019\nrisk exposure and accelerate capital in\u0000low, innovative risk-sharing and \u0000inancing mechanisms will\nbe critical. Multilateral public-private partnerships, joint-ventures across industries and value chains,\nsustainable \u0000inance taxonomies, and public funding in the form of grants, low-interest and\nconcessional loans and so on are a must to attract capital for the \u0000irst commercial-scale assets. All out means all in\nWithout radical change, industrial emissions will rise alongside demand for industrial products. The world\nshould go all out to tackle the industry decarbonization challenge. That means going all in on\ntransparency and collaboration. It is only with collective e\ufb00ort that industries can reach net zero. Disclaimer:  The views and opinions expressed in this document are meant to stimulate thought and\ndiscussion."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 4, "chroma:document": "As each business has unique requirements and objectives, these ideas should not be viewed\nas professional advice with respect to the business. This document may contain descriptive references to\ntrademarks that may be owned by others. The use of such trademarks herein is not an assertion of\nownership of such trademarks by Accenture and is not intended to represent or imply the existence of an\nassociation between Accenture and the lawful owners of such trademarks. \uf4a5"}


created_at: 2025-04-28 00:40:34
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created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf", "page": 7, "chroma:document": "8/11/23, 10:08 AM 5 Steps to Get Industries on Track for Net Zero | Accenture\nhttps://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 8/8\nPrivacy Statement  Terms & Conditions  Cookie Policy  Accessibility Statement  Sitemap\nDo Not Sell My Personal Information (for CA)\n\u00a9 2023 Accenture. All Rights Reserved."}


created_at: 2025-04-28 00:40:34
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created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 0, "chroma:document": "8/11/23, 10:36 AM Leading by example in spearheading the energy transition\nhttps://www.pwc.com/gx/en/services/tax/publications/leading-by-example-in-spearheading-the-energy-transition.html 1/7\nThe EU Green Deal and the Energy, Utilities\nand Resources industry: Leading by example\nin spearheading the energy transitionChris Winkelman\nEnergy - Utilities - Resources Industry Leader & Energy Transition Leader, Partner, PwC Netherlands\nIn mid-2021, the Germany-based chemicals giant Baden Aniline\nand Soda Factory (BASF) struck an agreement with the major\nEuropean energy company Vattenfall to buy a stake in the\nHollandse Kust Zuid offshore wind farm. The aim?"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 889b1b7a-c851-405c-9f14-d962a1cac4ad
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 0, "chroma:document": "To enable\nBASF to implement innovative, low-emission technologies at\nseveral of its production sites across Europe \u2013 and accelerate\nprogress towards its target of achieving net-zero emissions by\n2050. The deal was just one example of how European companies in\ndifferent industries \u2013 and in some cases competitors within the\nsame industry \u2013 are converging around a common goal:\ndecarbonisation of their operations and energy usage in\nsupport of the global drive to keep temperature increases as\nlow as possible. It\u2019s an effort that\u2019s being encouraged and\nsupported by the EU Green Deal, the EU\u2019s ambitious new\nstrategy to transform into a more competitive economy where\ngrowth is decoupled from use of resources. Energy, Utilities and Resources setting the\npace\nHowever, it\u2019s a strategy that many companies have yet to learn\nabout. In PwC\u2019s recent EU Green Deal Survey \u2013 based on\ninterviews with 296 senior decision-makers in businesses\nacross Europe \u2013 60% of all respondents said they were\nTags\nTax\nLegal\nPwC Global Services Tax services Publications Leading by example in spearheading the energy transition\n"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 1, "chroma:document": "8/11/23, 10:36 AM Leading by example in spearheading the energy transition\nhttps://www.pwc.com/gx/en/services/tax/publications/leading-by-example-in-spearheading-the-energy-transition.html 2/7\nunfamiliar with the Green Deal, and only 29% were prepared for\nit. But some other findings were more encouraging: for\nexample, 66% had already earmarked capital to invest in\nbecoming more sustainable, and 51% said they intend to shift\nkey locations in their supply chain."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 15e0cd78-9e1a-49bd-9b56-ce261b6c6a32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 1, "chroma:document": "What do these findings tell us? Based on my everyday\nconversations with Energy, Utilities and Resources (EU&R)\ncompanies, who are by nature heavy users of energy and\nresources and thus ahead of the curve in this area, it\u2019s a reality\ncheck to hear that more than half of companies across all\nindustries are not familiar with the EU Green Deal. Especially\nbecause EU&R businesses are actively working on\ndecarbonisation, and hence most of them are keenly aware of\nwhat the Green Deal means for them. So, for me, the lower level\nof awareness in other sectors sounds like a wake-up call that\nmore story-telling is needed to get the message across. Something else I find surprising is the relatively high proportion\nof companies \u2013 51% \u2013 that are looking to reshape their supply\nchains to reduce carbon. While I\u2019m seeing more and more\nEU&R companies do this, including moves such as the wind\nfarm investment I mentioned above, I\u2019ve seen less concrete\naction on supply chains so far in other industries. Which\nsuggests that this is an area where EU&R companies can lead\nthe way \u2013 and are doing so. Priorities for progress\nSo, what actions should companies in EU&R \u2013 and across other\nsectors \u2013 be taking to support the Green Deal\u2019s goals and\ncomply with its requirements? Again, the EU Green Deal Survey\nresults provide some useful guidance. Among sustainability\ninitiatives, decarbonising energy emerges as the top priority \u2013\nwith 78% of companies wanting to increase their consumption\nof clean energy, and 60% looking to reduce their energy\nconsumption, which means becoming more energy efficient. For companies in any industry, the first step towards these\npriorities is to inventorise their energy usage across their\noperations and the resulting Scope 1 and Scope 2 emissions."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 35989e53-8fd5-45d3-a15e-7ff82bc11d71
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 1, "chroma:document": "Of course, Scope 3 emissions are also important but are much"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: cc371be4-e60b-4ce2-9836-0803c23c5819
encoding: FLOAT32
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 2, "chroma:document": "8/11/23, 10:36 AM Leading by example in spearheading the energy transition\nhttps://www.pwc.com/gx/en/services/tax/publications/leading-by-example-in-spearheading-the-energy-transition.html 3/7\nmore outside the span of control of the company. Large\ncompanies that are already emitting within Europe can have a\nhead-start in creating this inventory, as they\u2019ll already be\nsubject to the EU Emissions Trading System (ETS), as a result\nof which they should already have the processes, procedures\nand technologies in place to understand their emissions\nelsewhere in the world. Armed with a comprehensive inventory,\na business can identify which areas of its operations and\nsourcing can be replaced or upgraded most easily to reduce\nenergy usage and carbon emissions, and target investment at\nthese. EU&R companies can play a big role in helping other industries\nrealise these opportunities. Companies across the EU&R sector\n\u2013 from long-standing incumbents to new startups \u2013 are\ninvesting heavily in renewable energy, and international oil\ncompanies are diversifying into renewables to decarbonise their\nown business and to help others decarbonise. As part of this\nshift, established EU&R players are using their existing\ninfrastructure and processes to support the energy transition,\nwhile also applying their brain power and connections to\nemphasise the importance of cooperation to maximise chances\nfor a successful transition. Cooperation between competitors in\nthe same Industry, across Industries, between public and\nprivate and between politics and businesses."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 64f0bc0b-f9d0-46a5-a395-b11d19229788
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 2, "chroma:document": "And they\u2019re\nhelping to bring their customers and wider society along on the\njourney, while being frank about the challenges it involves."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 2, "chroma:document": "This\nincludes the replacement of old jobs with new ones, but also\nupskilling the workforce to better fit this changing demand for\nnew capabilities through extensive training programs. As mentioned before, a key enabler of this drive for greater\nsustainability is collaboration and convergence between EU&R\nand other industries, often including cooperation along value\nchains between the public and private sectors. Some prime\nexamples? The roll-out across countries of infrastructure for\ncharging electric vehicles (EVs), the battery value chain. The\ncreation of integrated \u201cindustrial clusters\u201d to improve energy\nefficiency and reduce emissions. And joint investments in green\nhydrogen to provide a decarbonised energy carrier for the\nfuture."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 3, "chroma:document": "8/11/23, 10:36 AM Leading by example in spearheading the energy transition\nhttps://www.pwc.com/gx/en/services/tax/publications/leading-by-example-in-spearheading-the-energy-transition.html 4/7\nGovernment incentives are supporting the\njourney\u2026\nAlongside public-private cooperation, a further powerful driver\nof the EU Green Deal\u2019s ambitions is government funding. Our\nsurvey finds that 70% of companies undertaking environmental\nimprovements have tapped incentives, grants and tax credits to\ndo so."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 8c787006-8f64-437c-8b07-cb1630736227
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 3, "chroma:document": "This bears out my experience with EU&R clients, which\nsuggests that companies\u2019 traditional reluctance to take\ngovernment money has substantially softened \u2013 with a growing\nacceptance that the sheer scale of the climate challenge means\naccepting government support is fully justified and required. Under the EU Green Deal and other EU schemes there are\nmany funds and sources of finance for green initiatives,\navailable not just to companies but also countries. These funds\nshould act as a lubricant for the energy transition. \u2026as taxes shift from labour to pollutive\nactivities\nAs progress continues, an important change that the EU Green\nDeal is helping to drive \u2013 and which also has big implications for\nEU&R businesses \u2013 is an ongoing shift in the focus of taxation\naway from labour and towards pollutive activities. While this\nrefocusing is clearly positive for the environment, it brings\nsignificant challenges for governments, since it will not be easy\nto replace the existing revenues from labour taxes with a similar\nlevel of income from pollution-based levies. But there\u2019s now the\npolitical will in place to reshape the tax base in this way, and\nlegislation and tax rules will follow: the question is not if, but\nwhen. The opportunities ahead for EU&R businesses\nIn my view, the main opportunities are two-fold. First, to\nharness the know-how and funds now available to limit the\nnegative impacts of climate change by reducing emissions."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 26c8452c-e5c9-4c86-879a-2ef3d6c069e9
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 3, "chroma:document": "And second, to lead by example and help other industries\nnavigate the transition successfully. This is all the more\nimportant in a world where companies are seen as being\nresponsible and accountable to their wider stakeholders"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 93c68c68-a1fb-4b15-9cdc-22032af9f15a
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 4, "chroma:document": "8/11/23, 10:36 AM Leading by example in spearheading the energy transition\nhttps://www.pwc.com/gx/en/services/tax/publications/leading-by-example-in-spearheading-the-energy-transition.html 5/7\nrather than just shareholders, and where environmental,\nethical and humanitarian issues increasingly influence their\nfinancial performance and valuation. These opportunities are mirrored by the biggest downside\nrisks from failing to comply with the Green Deal."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 4, "chroma:document": "The risks\ninclude a strongly rising carbon price, increased costs\npassed on to consumers and business customers,\nreputational and financial damage, and \u2013 most important of\nall \u2013 a failure to halt the rise in global temperatures that\u2019s\nthreatening the future of the planet and mankind. While the EU Green Deal raises challenges for EU&R\nbusiness, it also gives them a chance to be among the\nleaders in tackling the biggest single threat facing the world\ntoday. It\u2019s a role that Europe\u2019s EU&R companies are\nincreasingly starting to play. Related content\nThe EU Green Deal and operations: advancing from digital operations transformation to\nphysical value chain reengineering\nFrom my everyday conversations with clients across many industries, it\u2019s clear that operations transformation using\ndigital remains a major focus. The core..."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: 7848ac0a-a316-4e02-8033-67b5d4742e2c
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 5, "chroma:document": "8/11/23, 10:36 AM Leading by example in spearheading the energy transition\nhttps://www.pwc.com/gx/en/services/tax/publications/leading-by-example-in-spearheading-the-energy-transition.html 6/7\nIndustrial products: A huge industry wrestling with diverse issues\nIf you spend a lot of time \u2013 as I do \u2013 working with industrial products companies, you\u2019ll know they have one key\ncharacteristic that shines through every day:... Why consumer markets companies need an overarching ESG strategy\nThis is the first entry in a blog series which aims to deliver an industry perspective on the findings of the EU Green\nDeal Survey. The first of which delves..."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 5, "chroma:document": "Same deep insights\nBold new formats\nIntroducing our brand-new digital issue and podcast"}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: e03746a2-afb7-4652-bb89-e434396c6d5a
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 6, "chroma:document": "8/11/23, 10:36 AM Leading by example in spearheading the energy transition\nhttps://www.pwc.com/gx/en/services/tax/publications/leading-by-example-in-spearheading-the-energy-transition.html 7/7\nSee what's new\nGet in touch\nEmail\nChris Winkelman\nEnergy - Utilities - Resources Industry Leader & Energy Transition Leader, Partner, PwC\nNetherlands\nTel: +31 (0)65 154 18 97\nPwC office locations Site map Contact us\n\u00a9\u00a02017 - 2023 PwC. All rights reserved."}


created_at: 2025-04-28 00:40:34
topic: persistent://default/default/ff41f70e-78a5-4746-9e39-8f885e260b3d
id: a35d81fa-b0c2-4d7b-b24d-0420271526b5
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{"source": "/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC CaseStudy_Leading by example in spearheading the energy transition.pdf", "page": 6, "chroma:document": "PwC refers to the PwC network and/or one or more of its member firms, each\nof which is a separate legal entity. Please see www.pwc.com/structure for further details. Legal notices  Privacy  Cookie policy  Legal disclaimer  Terms and conditions"}


# embedding_metadata

key: source
string_value:
/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture-Net-Zero-By-2050-Global-Report-2022.pdf


key: chroma:document
string_value:
Accelerating 
global companies 
toward net 
zero by 2050
New research shows progress 
and key steps necessary to 
speed efforts


key: chroma:document
string_value:
Sustainability commitments are getting stronger globally
Amid the economic, political and environmental disruption of 
2022, more companies than ever before have publicly committed 
to reaching net zero carbon emissions by around 2050. But this heightened ambition isn’t yet  
matched by the necessary action..


key: chroma:document
string_value:
To date, only 34% of the Accenture 
Global 2000 companies (G2000)* 
have publicly stated net zero targets 
—a slight improvement on last year. However, unless they accelerate progress, 
93% of companies with net zero 
commitments will miss their targets.


key: chroma:document
string_value:
To speed up efforts, companies should 
become carbon intelligent. This means 
integrating emissions data and insights 
into core business decision-making, 
allowing companies to prioritize, execute 
and scale decarbonization in this decade. These key Accenture research findings 
come at a critical moment—as 2023 marks 
the halfway point toward achieving the 
UN Sustainable Development Goals by 
2030. It’s also the year in which global 
updates on national decarbonization 
progress towards targets under the 
Paris Agreement/United Nations 
Framework Convention on Climate 
Change process will be published. Our findings are based on an expanded 
analysis of the Accenture G2000, 
building on last year’s Europe-based 
Reaching Net Zero by 2050 report. The number of major companies 
with net zero targets and other 
decarbonization measures in place
How many companies are on track  
to reach net zero
Strategies to accelerate 
decarbonization
1
2
3
Our 2022 research looks 
at three things:
*Our sample was based on 
the Accenture Global 2000 
(or G2000): an Accenture 
developed list of the top 2,000 
public and private companies 
in the world by revenue. For 
more information, see About  
the Research (p.


key: chroma:document
string_value:
Net zero targets are proliferating. More than a third of the world’s largest 
companies now have a net zero target in  
place--up 7 percentage points since  
December 2021. The Ukraine war has galvanized  
action--not dampened ambition.


key: chroma:document
string_value:
Setting targets works. The companies with net zero targets cut 
emissions more than those without. Those 
with more sophisticated targets and measures 
in place are cutting emissions even faster. However, on current trends, only 8% of 
companies will reach net zero by 2050. Even in an accelerated scenario, almost one 
quarter would not get there. Much more needs 
to be done. Key findings from our global net zero research
01
03
02
04
4Accelerating global companies toward net zero by 2050


key: chroma:document
string_value:
Executive summary
Net zero momentum is building. The UN Climate 
Change Conference in Glasgow (COP26) held 
in November 2021 was a catalyst; now more 
than 90% of the global economy is covered 
by national net zero commitments. Regional and industry differences remain, but 
advances have been made everywhere.


key: chroma:document
string_value:
And a 
greater proportion of companies committed to net 
zero are setting more sophisticated targets. They 
are spurring short-term action, planning the shift 
to renewables, and developing other clearly visible 
climate mitigation and adaptation strategies.


key: chroma:document
string_value:
But the context has also changed considerably 
in the past year. The war in Ukraine and the 
macroeconomic fallout from the pandemic have 
made the task of decarbonization harder. On the positive side, this seems to have focused 
minds.


key: chroma:document
string_value:
The proportion of companies planning to 
increase investments in sustainability has risen; 
total renewable energy spending grew by 11% 
year-on-year in the first half of 2022 alone. Nonetheless, our findings 
indicate that 93% of the G2000 
companies with net zero 
commitments will miss their net 
zero targets based on current 
trends. Already in this decade, 
the pace of emissions reduction 
needs to accelerate significantly. Setting targets remains a vital pursuit. Companies  
with net zero targets are reducing emissions faster 
than those without. And those with more sophisticated 
targets are cutting emissions even faster. How can global companies in every sector 
accelerate? By deploying decarbonization levers 
across operations and throughout the supply chain, 
such as increasing energy and materials efficiency, 
using renewable energy sources, electrifying 
fleets and logistics, building in incentives (such 
as carbon pricing schemes) to reduce demand, 
greening technology and developing low or 
even zero carbon products and services. Most importantly, it’s imperative they develop 
carbon intelligence capabilities. Our findings 
show that leading companies treat their carbon, 
energy and emissions data with the same 
importance as financial and operational business 
information. They integrate it into everyday decision-
making, and track and act on it accordingly. Industries will have unique challenges to solve  
on their paths to decarbonization – whether 
through value chain collaborations, 
business model innovations, use of existing 
technologies, or bold technology bets. But the general path forward is clear: Building 
a foundation of carbon intelligence capabilities 
across information, insights and impact will 
make it possible to address these challenges 
and make progress toward net zero faster. Accelerating global companies toward net zero by 2050
5


key: chroma:document
string_value:
First, some context to set the stage. It’s becoming 
increasingly clear that businesses prioritizing 
sustainability can benefit in multiple ways. As shown in 
the Accenture Shaping the Sustainable Organization 
research, integrating sustainability is associated 
with higher financial value – as well as greater 
positive impact for a wider group of stakeholders. Since decarbonization is the most pressing 
dimension of environmental sustainability, 
urgent action to achieve net zero is critical. Both because it protects long-term business 
value and because it is the right thing to do.


key: chroma:document
string_value:
• Working toward net zero, for example, through 
energy efficiency, demand reduction and 
the transition to renewables, can insulate 
the economy from fossil fuel price shocks.


key: chroma:document
string_value:
• Energy price spikes have implications for 
inequality, too. Citizens within lower income 
deciles typically spend a much greater 
share of their income on energy. And 
internationally, poorer countries tend to be 
both more dependent on fossil fuels, and 
more exposed to immediate climate risks 
such as from extreme weather events. Transition progress 
in the past year
Accelerating global companies toward net zero by 2050 
6


key: chroma:document
string_value:
The range of policy and regulatory  
announcements since COP26 are encouraging
Transition momentum is building
The Glasgow conference sought pledges to help 
keep warming below 1.5 degrees Celsius, and the 
current set of national commitments are promising. A total of 153 countries put forward new 2030 
emissions targets, which, to be realized, would need 
involvement and action by the private sector.1 
The formation of the Glasgow Financial Alliance for 
Net Zero (GFANZ) demonstrated that the 
 
private sector is getting serious about channeling 
capital towards the achievement of net zero. Meanwhile, regulators are increasing the pressure. In 
June 2022, the European Union announced provisional 
new disclosure standards for companies.2 The UK 
has also mandated that as of April 2022, Britain’s 
largest firms must disclose climate-related financial 
information.3  
 
And the recently passed US Inflation Reduction Act 
allocates $369 billion to reducing greenhouse gas 
emissions and investing in renewable energy sources.4
Policy changes come against the backdrop of 
further scientific warning. The Intergovernmental 
Panel on Climate Change (IPCC) underlines the 
scale of the challenge: emissions must peak in 
fewer than 600 working days (i.e., by 2025) if the 
world is to stay on track to limit warming to 1.5 °C.5 
Private capital committed by the financial 
sector to achieve net zero targetsc
Proportion of global greenhouse gas 
(GHG) emissions now covered by 
carbon pricing schemesb
Increase in Task Force on Climate-related 
Financial Disclosures (TCFD) supporters 
between 2018 and 2021.d
The proportion of global GDP 
(PPP) covered by national net zero 
commitmentsa
91% 23% $130 trillion 410%
Notes: a Net Zero Tracker (as of October 2022); b World Bank Carbon Pricing Dashboard (as of October 2022); c GFANZ; d TCFD Status Report 2021 – “supporters” refers to organizations that have pledged their support for the TCFD recommendations.


key: chroma:document
string_value:
The macroeconomic and geopolitical  
environment make net zero harder to achieve
Inflation: A sharp rise in consumer demand following 
the lifting of pandemic restrictions and the war in 
Ukraine have had a global impact on the price of 
energy, food and other materials. Businesses with 
exposure to material input and energy prices are 
being squeezed, diminishing their capacity to invest.


key: chroma:document
string_value:
Rising interest rates, aimed at curbing inflation, may 
also deter spending by raising the cost of capital. Supply chains: The pandemic disrupted logistics 
networks. Lockdowns, port congestion and a 
lack of container ships created delays, product 
and part shortages, and rising transport costs. This hurt production in numerous industries–
notably automotive manufacturing–and 
may, in turn, slow down capital projects and 
investments necessary for decarbonization. Talent: Worker shortages are high across 
advanced economies. Many people have left the 
labor force, particularly older workers and those 
from disadvantaged groups. Others have shifted 
preferences (aka the “great resignation”). The  
effect is both tighter labor markets and sectoral 
imbalances, leaving some industries unable to 
attract the skills they need. 60%  
of CXOs expect price increases to reduce 
consumer spending power, contributing 
to a decline in consumer and business 
confidence.6  
12-24 months  
Time that European supply chain 
disruptions could take to ease in a 
scenario where the Ukraine war lasts 
into 2023 and the W est imposes further 
sanctions on Russia.7  
+41%  
The rise in job vacancies in the US 
– August 2022 vs August 2019.8 The 
International Monetary Fund notes 
that labor market tightness afflicts 
many advanced economies.9
Despite these signs of progress, a host of crises—including the war in Ukraine and the fallout from the 
pandemic—have potentially made net zero harder to achieve. Problems of inflation, supply chain bottlenecks 
and talent shortages all contribute to a more challenging environment for investment and action.


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9
Accelerating Global Companies toward Net Zero by 2050
In the midst of this difficult environment, net zero  
remains firmly on the corporate agenda
As the adage goes, difficulty can breed determination. Our findings show that current instability — driven primarily by the war in Ukraine, and the ensuing 
macroeconomic turbulence and energy price fluctuations — has not deterred the focus on 
sustainability. In fact, executives say they will increase investment in sustainability with trends in 
clean energy spending and science-based target setting largely supporting these claims. 84%
of companies still said in June that they plan to 
increase investments in sustainability initiatives 
by the end of the 2022.10 
This proportion has risen since last year, 
when 80% of executives said they would raise 
sustainability investment by the end of 2021. 39%
of all Science-Based Target initiative (SBTi) 
commitments and targets set since 2015, were set 
in the months after the war in Ukraine began, up to 
the start of October.11
As of October, a record number of companies (237) 
had committed and set science-based targets in 
both June and September 2022. $226
the amount of new worldwide renewable energy 
investment in the first six months of 2022.12 
It’s a +11% year-on-year rise and the highest 
ever recorded for a first half year, showing that 
demand for clean energy remains strong.


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Net zero targets are  
increasing everywhere
The numbers tell the story: the proportion of major, global companies 
that have committed to net zero has risen since December 2021. Accenture G2000 companies in every region appear to be setting 
clear and publicly visible net zero targets. The overall sample 
saw a 7-percentage point increase. This amounts to a roughly 
25% jump in relative terms – with more than half of European 
companies in our sample now committing to net zero. Although globally the average target year remains the same as before 
(2048), in North America and Europe the expanded number of targets has 
pushed the average target year back one year – in both cases to 2047. 34% 2048
+7
+14
+5
+4
27% 2048
Global
(2022 n=2000;  
2021 n=2000)
G2000 companies with net zero targets
Proportion of companies with net zero targets, %e
2022 sample
Notes:  eWe consider a net zero target to be one in which a company aims to reduce carbon emissions to net zero in Scopes 
1, 2, and 3. fThe G2000 list changes every year by up to 10%, so the samples between the years comprise a slightly different 
set of companies.


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Canada, and Bermuda
2021 samplef. Y-on-Y change in per-
centage points
Avg. net zero  
target year
51% 2047
37% 2046
Europe
(2022 n=507;  
2021 n=510)
28% 2047
23% 2046
North Americag
(2022 n=600;  
2021 n=613)
28% 2050
24% 2050
Rest of world
(2022 n=893; 
2021 n=877)
Accelerating global companies toward net zero by 2050
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Industries are making progress
Almost all industries have seen the proportion of companies setting net zero targets rise over the past year. And more carbon-intensive industries have seen these proportions grow the most. 22% 23%
35%
24%
4%
29% 26%
36%
24%
10%
30%
25%
49%
55%
41%
54%
+26 +16 +5+8 +7 +2+7 +3 +1 +7+6 +6 +5 +0+17 +10 +0 +9
Industries with HIGHER carbon intensity Industries with MEDIUM carbon intensity Industries with LOWER carbon intensity
G2000 companies with net zero targets by industry
Proportion of companies with net zero targets, %
2021 sample Change in proportion (in percentage points) setting net zero targets2022 sample
35%
30%
44%43%
37%
46%
21% 22%
46%
38%
32%
46%
Travel CG&S
Capital Markets
A&D
Utilities Mobility SW&P
Life Sciences
Chemicals
Hi-Tech Banking Insurance
Energy Industrial
Comms & Media
HealthNat. Res. Retail
25% 23%
37%
24%
31% 29%
42%
33%
Notes: Carbon intensity is measured as Scope 1 and 2 emissions as a proportion of revenues (tCO2e/US$ mn revenues) using S&P Trucost data for companies in the G2000 sample. For each industry we take an average of 
the emissions intensity from G2000 companies in that industry. For the categories here, Lower = less than 50 tCO2e/US$ mn revenues, Medium = 50-500 tCO2e/US$ mn revenues, and Higher = greater than 500 tCO2e/
US$ mn revenues. Industry abbreviations: Nat.


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Res. = Natural Resources, Mobility = Automotive + Public Transport, SW&P = Software & Platforms, A&D = Aerospace & Defense. Change percentages may appear to differ by one 
percentage point from 2022 minus 2021 figures due to rounding.


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But as important as setting the 
destination: the route you take
Now it’s time to gather this momentum and take it further, faster. Companies need to be motivated to act in the short-term. They also need 
to focus on practical decarbonization levers – such as rapidly shifting 
away from fossil fuels – and develop a clear strategy for the transition. In short, carbon needs to become part of business intelligence, 
and integrated into strategy and operations accordingly. A single final target will not achieve this aim.


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Our findings indicate that alongside their commitments to net zero, 
company commitments in more specific areas need to be advanced as well. Read our report--Measuring Sustainability, Creating Value--about 
how companies make environmental, social and governance 
(ESG) measurement a key part of financial reporting. Accelerating global companies toward net zero by 2050
12


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13
Accelerating Global Companies toward Net Zero by 2050
What is 
needed? Intermediate targets
Companies need to make progress in the 
short-term. Long-term targets alone are unlikely 
to spur immediate action, especially with 2050 
deadlines. Intermediate targets for this decade 
are necessary to ensure that progress is being 
made and to drive action in the short-term. A clear and integrated  
transition strategy
Companies need a clear plan and framework 
for their transition. While no two companies 
face the same challenges or starting points, 
clarity around climate strategy and governance, 
and integration or alignment with the broader 
corporate strategy are key. Alignment to the 
TCFD framework is a great way to start.i
Net zero targets
Companies need a north star. Without net zero targets that cover scopes 1, 2 
and 3 in place, reaching net zero is unlikely to 
be prioritised by the business.h
Lever-specific targets like 
renewable energy targets
Companies need to incentivize investments in 
renewable energy innovation and deployment.


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Scope 2 covers indirect emissions from the generation of purchased 
electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s 
value chain; iTask Force on Climate-related Financial Disclosures
02
04
01
03
Accelerating global companies toward net zero by 2050
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More sophisticated 
measures, like setting 
intermediate targets, 
are proliferating
The good news is that we see progress  
across these areas.


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Rather than merely setting blunt timelines 
for decades in the future, companies that are 
committed to net zero are holding themselves 
to account with additional intermediate 
targets that spur short-term action. 83%
+17
+15
+22
+14
66%
Overall Sample
(2022 n=675;  
2021 n=543)
Region
n = companies setting 
net zero targets
Intermediate targets
Proportion of those with net zero targets setting intermediate 
targets to measure their progress, 2022 vs 2021j; %
2022 sample of companies with net zero targets 2021 sample of companies with net zero targets Y-on-Y change  
(percentage points)
86%
72%
Europe
(2022 n=259; 
2021 n=190)
89%
66%
North America
(2022 n=167;  
2021 n=142)
75%
61%
Rest of world
(2022 n=249;  
2021 n=211)
Notes: jQuestion: “Has the company set intermediate emission reduction targets as a strategy to reach the ultimate net zero target?” 
Change percentages may appear to differ by one percentage point from 2022 minus 2021 figures due to rounding. Accelerating global companies toward net zero by 2050 
14Accelerating global companies toward net zero by 2050


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Companies are also devising 
additional targets around the multiple 
decarbonization levers needed to get 
there – by focusing on the shift away 
from fossil energy use, for example. As well as 
renewable 
energy targets 50%
45%Overall Sample
(n=675)
Region
n = companies setting 
net zero targets (2022)
Renewable energy targets
Proportion of those with net zero targets 
setting renewable energy targetsk %
Public targets, and public actions/results No public targets, but public actions/results
No public targets, and no public actions/results
48%
49%Europe
(n=259)
53%
43%North America
(n=167)
49%
43%Rest of world
(n=249)
5%
3%
4%
9%
Notes: kQuestion: “Do companies provide evidence for the presence of renewable energy targets?”
Percentages may not total 100% due to rounding.


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In every region, companies with net zero targets 
are readily adopting the Taskforce on Climate-
Related Financial Disclosures (TCFD) framework. This is a strong proxy for evidence of clear 
governance and strategy around the transition.


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Those that set net zero targets tend to also 
have implementation plans that can be shared 
externally. And a clear and 
integrated transition 
strategy 81%Overall Sample
(n=675)
Region
n = companies setting 
net zero targets (2022)
Clear transition strategy
Proportion of companies reporting against 
the TCFD frameworkl %
2022 sample of companies with net zero targets
81%Europe
(n=259)
82%North America
(n=167)
81%Rest of world
(n=249)
Notes: lQuestion: “Does the company report against the TCFD?”
Accelerating global companies toward net zero by 2050
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The Task Force on  
Climate-related  
Financial Disclosures
The TCFD published its recommendations in 
2017. It provides a framework for companies 
to disclose better, standardized information 
related to climate-related risks and opportunities 
and the wider net zero transition. The TCFD aims to ensure that investors 
and other stakeholders can see – and make 
judgements on – a company’s governance 
and strategy around the transition, as well 
as its approach to risk and opportunity 
management and the metrics it uses.


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Aligning 
with the TCFD framework helps businesses 
initiate and execute on this journey. 17
Accelerating global companies toward net zero by 2050 


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Y et despite growth in ambitions, 
most companies remain off track
Unfortunately, it’s far from a rosy picture overall. On current emissions reduction trends, only 7% of Accenture G2000 companies, 
which is a small subset of global businesses, are on track to achieve their own net 
zero targets for scope 1 & 2 (operations) and pushing the targets forward to 2050  
bumps that share only slightly to 8%. However, current emission reduction trends are likely to speed up as technology 
advances, efforts intensify and external pressures increase. A greater share of 
companies are projected to reach net zero in a consensus pathway.*
But even in an accelerated scenario – where the pace of emissions reduction 
is twice as fast until 2030 and then up to five times as fast until 2050 – two 
fifths of companies will miss their own targets. And 22% will fail to hit net zero 
by 2050 – the deadline deemed necessary to avert catastrophic climate change. Concerted action is needed by companies in every industry—and now is the right 
time to proceed.


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vs. own target
(n= 827)
Current trends
Linear projection
Consensus pathways
S-curve (x2 until 2030, x3 until 2050)
Accelerated action
S-curve (x2 until 2030, x5 until 2050)
On track Not on track
vs. 2050
(n= 1394)
Proportion of companies projected to reach net zero operational emissionsm
7% 37% 61%
8% 41% 78%
93% 63% 39%
92% 59% 22%
Notes: mAnalysis based on sample of G2000 companies with at least 5 years of reported emissions data in the period 2011-2020.


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For more detail on the scenarios and modelling assumptions, please refer to About the Research at the end. We considered that a company achieved the target once they reduced by at 
least 95% of the absolute emissions in 2020. Consensus emissions reduction pathways, such as the ones developed by the Transition Pathway Initiative, set sector-specific emissions reduction trajectories 
that reflect consensus expert knowledge about the best available technology for reducing emissions and industry-specific challenges. The Accelerated Action scenario reflects the pace of emissions reduc-
tion of mitigation pathways compatible with 1.5°C, as developed by the IPCC. Accelerating global companies toward net zero by 2050
19


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Even on a consensus pathway, in which projected emissions 
reduction speeds double over the next decade, many 
industries will still fail to meet net zero by 2050. Average projected year to reach net zero in operations Average target year set for net zero in operations
Net zero by industry
Emissions scope 1 & 2; consensus pathway scenario for average company projected year of achievement
Many industries are not on track to meet 
net zero by 2050 and need to accelerate
Notes: Modelling assesses the progress of companies in reducing operational emissions (scope 1 & 2) only. This is because companies are most able to control these emissions – and to avoid 
double counting emissions. Target year is based on the average target set by companies in the sample. Average projected year is based on the average of company trajectories. 2035
2040
2045
2050
2055
2060
2065
Insurance
Utilities
Life Sciences
Banking
Retail
Capital Markets
SW&P
Health
Comm
s & Media
Travel
Industrial
Mobility
Hi-Tech
A&D
CG&S
Energy
Chemicals
Nat. Res.


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Setting targets is a 
good starting point
Fortunately, our research results 
also showcase clear steps that every 
company can take to accelerate their 
net zero efforts. It starts with goal setting.


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On average, companies that have set full net zero targets managed to cut 
operational emissions by 18% between 2011 and 2020. Targets have a disciplining effect. Segmenting companies by the presence 
of emissions targets shows that net zero targets tend to work at getting 
companies to focus on cutting emissions. The pandemic had an overall dampening effect on emissions though.


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Those with Scope 1 and 2 targets also saw on average a decrease in their 
emissions over this period, but to a much lesser degree. To eliminate the pandemic effect, we also tested emissions reduction to 
2019. The only group to have cut emissions in this period were those with 
net zero targets. Relative change in average company absolute Scope 1+2 emissions
Grouped by target status, %
G2000 companies with emissions data that have…n
-18%
-5%
Full net zero targets
(n=527)
decreasing increasing
Period 2011 to 2020 Period 2011 to 2019
-1%
3%
Targets for Scopes 1 and 2 only
(n=222)
13%
20%
No Net Zero Targetso
(n=411)
Companies with net zero targets have cut  
emissions substantially since 2011
Notes: n Companies without emissions data in both 2011 and 2020 are not included in the samples here. o This group either had no reduction targets whatsoever, or had some emissions targets but not related to any 
form of carbon neutrality across any scope.


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Companies with 
multiple targets 
are cutting  
emissions faster
What’s more, companies that have built up a 
bigger suite of programs have been cutting 
emissions faster than their peers. By going much further than setting distant 
net zero targets, firms that develop and 
deploy comprehensive decarbonization 
strategies and carbon intelligence 
capabilities are seeing the benefit. 2.4%Overall (those with sufficient emissions data)
(n=1395)
decreasing increasing
Companies with emissions data
-0.2%With net zero target
(n=572)
-1.1%
-1.1%
-1.3%
70%
29%
24%
13%
12%
With above plus intermediate targets
(n=481)
With above plus renewables targets
(n=258)
With above plus TCFD disclosures
(n=237)
Notes: p CAGRs are calculated using averages with outliers omitted; in a small number of instances, companies do not have data for 2011, so we use the CAGR based on their 
earliest year of reporting after this, provided they have at least five years of emissions data in the CAGR period. See About the Research for details on the modelling sample.


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Sub-group
n = companies that meet given criteria
Proportion of G2000
%
Emissions CAGRp
2011-2020
Accelerating global companies toward net zero by 2050
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Lessons from  
the leading set
Zooming in on companies that are on track 
to hit net zero by 2050 on a consensus 
pathway, we see this pattern of speedier 
decarbonization even more clearly. Companies that deploy multiple strategies to 
manage their decarbonization progress have 
been shown to be more successful at cutting 
emissions. In all, 109 leading companies – 5.5% of our 
G2000 sample – display best practices in 
a range of areas and have cut their own 
emissions rapidly. -4.2%Overall (emissions data + on track)
(n=574)
Emissions decreasing
Companies that are on track to hit net zero by 2050q
-5.6%With net zero target
(n=260)
-6.5%
-7.0%
-7.4%
29%
13%
11%
6.1%
5.5%
With above plus intermediate targets
(n=222)
With above plus renewables targets
(n=122)
With above plus TCFD disclosures
(n=109)
Notes: q Consensus Pathway 2050 goal; CAGRs are calculated using averages with outliers omitted; in a small number of instances, companies do not have 
data for 2011, so we use the CAGR based on their earliest period of reporting after this. See About the Research for details on the modelling sample.


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Sub-group
n = companies that meet given criteria
Proportion of G2000
%
Emissions CAGR
2011-2020
Accelerating global companies toward net zero by 2050
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Developing building blocks  
of carbon intelligence
Looking more closely at these leaders, we observe 
they are more likely to treat their carbon, energy, and 
emissions data as true business information. They not only track it; they act on it. These leading companies are more likely to ensure their 
targets are science-based. They build in methods to 
reduce energy use and emissions. And they implement 
more complex mechanisms including, but not limited 
to, internal carbon pricing.


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In addition, they are more likely to adopt and report 
against prominent ESG frameworks, which demand 
clarity around climate strategy and governance. Leading companies
(n=109)
Companies with a 
net zero target
(n=675)v
79% 40% 34% 4.3
66% 26% 22% 3.5
31% 16% 12% 2.4Entire G2000 sample
(n=2000)
Notes: r Does the company mention that its targets are science-based?; s Do companies provide evidence for the presence of energy efficiency / energy consumption reduction targets?; t Do companies provide evidence 
for the presence of internal carbon pricing? u Does the company report against these standards?


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(Yes/No): CDP, GRI, TCFD, CDRB, VRF’s Integrated Reporting Framework, SASB, WEF’s Stakeholder Capitalism Metrics, 
UNGC; v Full set, not just those with emissions data. Sub-group
n = companies in sample
Science-based targetsr
Proportion with these, %
Internal carbon pricingt
Proportion using, %
Energy efficiency targetss
Proportion with these, %
ESG framework adoptionu
Average number using, n/8
Accelerating global companies toward net zero by 2050
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Examples of leading company  
decarbonization initiatives
Naturgy
HP
Siemens
Suntory
CVS Health
Mahindra & Mahindra
With the goal of achieving zero emissions across all 
scopes by 2050, Naturgy´s strategy for decarbonization 
includes achieving a 56% clean energy mix by 2025, 
leading to the closure of all its coal-powered stations in 
2020, and a 33% increase in installed capacity through 
wind, water and solar power investment in 2021.13
HP set the SBTi-validated goal of reducing 90% of its 
absolute emission reduction across all scopes, with 
interim 2030 targets. By engaging with suppliers through 
training, and promoting reporting and science-based 
target setting, GHG emissions intensity were reduced by 
4% in 2020, relative to 2015.


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HP estimated a reduction of 
81,000 tons of CO2 from suppliers in 2021.16
Siemens aims to achieve a 50% emission reduction in 
operations by 2030. Its plans are validated by SBTi and 
aligned to TCFD guidelines.


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In 2021, its scopes 1 and 
2 emissions decreased by 36% compared with 2019. It achieved this by acquiring 78% of its energy from 
renewable sources, electrifying 8% of its company fleet, 
migrating to carbon-neutral buildings, and using an internal 
CO2 price to incentivise decarbonization initiatives.14
The Japanese company implemented energy-saving 
measures in its plants, improving heat recovery in industrial 
processes, installing photovoltaic panels, and switching 
to natural fuels with fewer GHG emissions per unit. In line 
with its goal to reduce 50% of direct operation emissions by 
2030, Suntory reduced its scope 1 and 2 emissions by 13.5%, 
compared with 2019 levels.17
CVS recognizes that reduced air quality leads to more 
respiratory and cardiovascular disease. As part of it 
Healthy 2030 commitments and SBTI-validated goal to 
reduce environmental impact by at least 50% by 2030, 
CVS is investing in more energy-efficient locations. CVS achieved a 33,500 MWh energy reduction in 2021 
implementing a range of initiatives including transitioning 
740 CVS locations and using energy management systems 
to optimize lighting, heating, and cooling systems.15
The Indian automotive company has in place a carbon 
neutral goal by 2040, validated by SBTi, as well as the 
target to achieve 100% renewable energy by 2030. In 2021, the company increased its renewable energy 
consumption by 19%, and enhanced energy efficiency 
in its sites, achieving an 11% reduction in scopes 1 and 2 
emissions compared with the year before.18
Accelerating global companies toward net zero by 2050
26


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27
Accelerating Global Companies toward Net Zero by 2050
Accenture’s view of carbon intelligence
Focus is on equipping/embedding 
these in the organization and across the 
organizational operating model 
(people, process, technology)
Further value from unlocking opportunities with 
carbon and ESG intelligence up and down the 
value chain, from suppliers to customers
Carbon intelligence is a set of capabilities that 
enables organizations to control, improve and drive 
value-creation and impact, by embedding carbon, and 
broader ESG, business intelligence into decision making 
within the core business and across the value chain. Moving from carbon and ESG as an after-the-fact 
reporting exercise, to driving value by leveraging 
advanced digital technologies for carbon-informed 
decision making across core processes, with higher 
granularity, higher frequency, better integrated and 
more trusted and auditable data
Accelerating global companies toward net zero by 2050
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28
Accelerating Global Companies toward Net Zero by 2050
Carbon intelligence capabilities to develop
Information
by diagnosing, assessing and 
setting the decarbonization 
strategy, and then monitoring 
and measurement of carbon 
performance
Insight
to audit, record and report emissions, 
as well as to set targets and 
performance manage their delivery
Impact
unlocked from this insight—whether it 
is about reducing, replacing, optimizing 
or offsetting emissions; predicting or 
rebalancing the portfolio; or trading and 
monetizing new products and services
To pick up the pace to net zero, companies will need to rewire to become carbon intelligent. This means 
developing and deploying carbon intelligence capabilities across the business in three categories:
These categories span seven enabling and value-driving capabilities as shown below.


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Diagnose, Assess 
& Set Strategy
Monitor & 
Measure
Audit & Record, 
Report
Target & Performance 
Management
Reduce, Replace, 
Optimize & Offset
Predict & Rebalance 
Portfolio
Trade & Monetize
Information Insight Impact
Enabling capabilities
Carbon intelligence
Value-driving capabilities
Accelerating global companies toward net zero by 2050
28


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Actions to  
take now
Regardless of the starting 
point, your company’s efforts 
are essential to helping the 
world achieve net zero by 2050. It takes determination and 
action across the spectrum.


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Companies just getting started:
  
Set targets, create milestones 
and start measuring progress
Gather, interpret and act on your carbon and 
energy data. If your company doesn’t have a 
clearly defined net zero target, set one. Then, 
make sure there are milestones to get there, in 
the form of publicly announced intermediate 
targets. With the pathway set, build in more 
sophisticated metrics – around energy 
use, for example – and create capabilities 
for measurement and a plan for action. Those already on the journey:
  
Prioritize investments and harness 
efficiencies across the enterprise 
With granular data about energy and emissions 
adequately integrated with operational and 
financial data, you can identify and prioritize 
the investments that have immediate value and 
carbon payoffs. Evaluate assets and operations 
for areas where efficiencies can be achieved.


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These lead to both avoided emissions and saved 
energy – especially useful when energy prices are 
high. Such measures can often be as mundane as 
fixing the lighting in your buildings or measuring 
electricity performance with greater granularity. But it could also involve rethinking processes or 
pivoting to self-generate renewable electricity. Those who are advanced:
  
Place bolder bets. Innovate, 
invest and collaborate across 
sectors and value chains
In some industries, the technologies and broader 
solutions to get to net zero lie in the future 
through innovation. Identify, build and scale 
them.


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This will involve extensive collaboration 
– across sectors and value chains. For some 
industries, key solutions will be developed 
elsewhere. Work out what solutions will be 
needed, and find partners to develop them. Similarly, legacy solutions that look cheap today 
may become stranded assets.


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Identify where 
new investments can be made now that will 
give your company an edge in the future. Accelerating global companies toward net zero by 2050
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It’ s time to lead  
decarbonization  
efforts in this decade
At the halfway point towards achieving the UN 
Sustainable Development Goals, it’s urgent for global 
companies in every industry to accelerate toward net 
zero. While progress on target-setting made in the 
past year is promising, more work needs to be done.


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Strategies to accelerate decarbonization are available now. How will you guide your enterprise 
to become carbon intelligent? Contact Accenture to learn more. Accelerating global companies toward net zero by 2050
31


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Accenture committed  
to being net zero by 2025
As shared in our online, interactive Accenture 360° 
Value Experience, we define 360° Value as delivering 
the financial business case and unique value a 
client may be seeking, along with striving to partner 
with our clients to achieve greater progress across 
these vital dimensions: Client, Talent, Inclusion & 
Diversity, Experience, Sustainability and Financial. For the category of Sustainability, 
we are committed to helping our 
clients achieve their sustainability 
goals and to operating Accenture  
to reach ours. This includes addressing environmental issues 
through our own commitment to achieve net zero 
emissions by 2025 and by helping our clients and 
suppliers make and meet their commitments. UN Global Compact Business Ambition 
for 1.5° Pledge--Accenture is one of 1,100 
companies pledging to do our part to keep 
global warming below 1.5˚ Celsius. Science-based target--By 2025 we will reduce our 
absolute greenhouse gas (GHG) emissions by 11%, 
our Scope 1 and 2 GHG emissions by 65%, and Scope 
1, 2 and 3 emissions per unit of revenue intensity by 
40%, against our 2016 baseline.


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As of August 31, 2021, 
our progress included total emissions decreased by 
65%, Scope 1 and 2 emissions were reduced by 72% 
and emissions per unit of revenue reduced by 76%. Renewable electricity--We plan to meet our office 
energy needs with 100% renewable electricity by 2023. Engaging our suppliers--We will require 90% of our 
key suppliers* to disclose their environmental targets 
and actions being taken to reduce emissions by 2025. (*Key suppliers are defined as vendors that represent 
a significant portion of our 2019 Scope 3 emissions.)
Nature-based carbon removal--In September 2021, 
we announced our investments in nature-based 
carbon removal projects. Our projects will broadly 
align with our geographic footprint, and will reforest 
land, rebuild biodiversity, make agriculture more 
sustainable, help create green jobs and allow natural 
ecosystems to rebound and thrive—all while removing 
CO2 from the atmosphere.


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Over the next 20 years, this 
program is expected to physically remove more than 
13 million metric tons of carbon from the atmosphere. Accelerating global companies toward net zero by 2050
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ContributorsAccenture Authors
Jean-Marc Ollagnier 
Europe CEO 
jean-marc.ollagnier@accenture.com   
 @jmollagnier
Peter Lacy 
Global Sustainability Services  
Lead & Chief Responsibility Officer 
peter.lacy@accenture.com 
 @peter-lacy
Mauricio Bermúdez Neubauer 
Carbon Strategy & Intelligence Global Lead 
m.bermudez.neubauer@accenture.com 
 @mauriciobermudezneubauer
Matthew Robinson 
Project director
Babak Moussavi 
Project lead
Core team
Ana Clara Gimenez  
Monique de Ritter  
Catalina Mainardi  
Guillaume Simon  
Katharine Chung  
François Luu 
Jackie Brody Tavitas  
Debbie Van der Hyde
Accelerating global companies toward net zero by 2050
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About the research
This analysis takes stock of global corporate net 
zero targets. It shows how many of the world’s 
largest companies have announced net zero 
targets, in which year these companies aim to 
achieve net zero, and how they are positioned to 
meet these targets considering their track record 
of reducing GHG emissions in the past decade. Our sample was based on the Accenture 
Global 2000 (or “G2000”): an Accenture-
developed list of the Top 2000 public and 
private companies in the world by revenue. We first collected data about the net zero 
targets based on the G2000 list working with 
TheSmartCube. We found 675 that had announced a 
net zero target covering scope 1, 2 and 3 emissions. We grouped these companies by region (Europe, 
North America, and Rest of world and by industry.


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Secondly, we analyzed the emissions from 2011 to 
2020 of companies in our sample. We focused on 
the absolute scope 1 & 2 emissions (excluding scope 
3 to avoid double counting) and calculated the 
compound annual growth rate (CAGR) of emissions 
over the 10-year interval, adjusting for missing data 
and excluding effects of structural changes to the 
business (e.g., divestments and acquisitions). We 
eliminated from the sample companies that did 
not report on emissions for a minimum of 5 years 
during the 2011-2020 period. This resulted in a 
dataset of 1394 companies (the sample that we 
used to model progress against a 2050 net zero 
goal). In total there were 827 companies that had 
both at least a scope 1 & 2 net zero target and had 
reported at least 5 years during the last decade 
(the sample that we used to model progress 
against companies’ own net zero target years). Thirdly, we built projections of potential emissions 
reduction pathways for each company in our  
 
 
 
dataset and estimated in which future 5-year 
time interval the company is likely to reach 
net zero. We chose the projections to take the  
shape of an “S-curve”, in line with existing expert 
scenarios for emissions reduction by industry. We then aggregated the company-level projections 
to industry and region level to assess the time 
period over which companies in the industry 
and region are likely to achieve net zero. Finally, we compared the net zero target years 
with the time interval resulting from the emissions 
pathway analysis and evaluated commonalities and 
differences across industries and regions. We also 
ran this analysis against a target year of 2050.


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We have conducted a similar analysis in December 
2021. For this wave, we have compared results 
to the last wave.


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Also, we have conducted 
additional contextual analyses making use of 
Accenture surveys and the SBTi database. Accelerating global companies toward net zero by 2050
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Region and 
Industry 
classification
  Region  Industry name Number of companies
Europe (N=507)
Austria, Belgium, Czech Republic, Denmark, Finland, France, 
Germany, Greece, Hungary, Ireland, Israel, Italy, Kazakhstan, 
Luxembourg, Netherlands, Norway, Poland, Portugal, Russian 
Fed., Spain, Sweden, Switzerland, Turkey, Ukraine, United 
Kingdom
Aerospace & Defense (A&D) 22
Banking 152
Capital Markets 52
Consumer Goods and Services (CG&S) 155
Chemicals 79
Comms & Media 77
North America (N=600)
United States, Canada, Bermuda
Energy 121
Health 59
Hi-Tech 115
Industrial (Equipment, Freight & Logistics) 370
Rest of world (N= 893)
Algeria, Argentina, Australia, Azerbaijan, Brazil, Chile, China, 
Colombia, Ecuador, Hong Kong, India, Indonesia, Japan, 
Kuwait, Malaysia, Mexico, New Zealand, Oman, Pakistan, 
Philippines, Qatar, Saudi Arabia, Singapore, South Africa, 
South Korea, Taiwan, Thailand, United Arab Emirates, Vietnam
Insurance 150
Life Sciences 60
Mobility 70
Natural Resources 154
Retail 197
Software & Platforms (SW&P) 28
Travel 29
Utilities 110
We grouped the companies by 
region and industry, based on 
the Accenture G2000 company 
list (original sample, before 
exclusion criteria)
Accelerating global companies toward net zero by 2050
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Methodology
We built projections of potential emissions 
reduction pathways for each company in our 
data set, and estimated in which future five year 
time interval the company is likely to reach zero 
emissions. We chose the projections to take the 
shape of an “S-curve”, in line with existing expert 
scenarios for emissions reduction by industry. As a first step, we determined a company’s 
starting point for the projection. This was 
informed by its absolute emissions in 2020 
and its negative Compound Annual Growth 
Rate (CAGR) from 2011 to 2020. • Companies that have already achieved fast 
emissions reduction in the past decade were 
placed further ahead on the S-curve to see 
a deceleration in their emissions reduction 
rate over time, as the remaining options 
for emissions reduction become harder to 
realize. For these companies, the projection 
used the historical CAGR of the company. • Companies that had achieved little or no 
emissions reduction in the past decade were 
placed further back on the S-curve, meaning 
that in the projection they first catch up with 
the typical emissions reduction rate that 
industry peers had achieved in the past, 
and then gradually accelerate the pace of 
emissions reduction. For these companies, we 
create the projection using the median CAGR 
of the companies in the same industry that 
had reduced emissions between 2011-2020. Secondly, we created the S-shape of the curve 
by using a matrix of multipliers for each period 
(displayed on the next page), which define the speed 
of emissions reduction over time.


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The Consensus Pathways scenario 
reflects the emissions reduction trajectories of the 
Transition Pathway Initiative, which in turn reflect 
consensus expert knowledge about the best available 
technology for reducing emissions and industry-
specific challenges. The Accelerated Action scenario 
reflects the pace of emissions reduction of mitigation 
pathways compatible with 1.5°C, as developed by the 
Intergovernmental Panel on Climate Change (IPCC). As the projections are based on reduction rates 
and therefore approach zero asymptotically, 
we considered that a company achieved 
the target once they reduced by at least 
95% of the absolute emissions in 2020. Accelerating global companies toward net zero by 2050
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37
Accelerating Global Companies toward Net Zero by 2050
CAGR Multipliers Matrix
Consensus Pathways Scenario
 Company
 CAGR
 Starting CAGR used
 for projection
2020-
2024
2025-  
2029
2030-
2034
2035-
2039
2040-
2044
2045-
2049
 < -12.5%  Company CAGR 1.8 2.1 1.2 1 1 1
 -12.5% to -7.5%  Company CAGR 1.8 1.8 2.1 1.2 1 1
 -7.5% to -5%  Company CAGR 1 2.1 3.2 3.2 3.3 3
 -5% to -2.5%  Company CAGR 1 2.1 3.2 3.2 3.3 3
 -2.5% to 0%  Industry median 1 2.1 3.2 3.2 3.3 3
 0% to 2.5%  Industry median 0 1.8 3 3.5 3.5 3.3
 2.5% to 5%  Industry median -0.2 1 2.1 3.2 3.5 3.5
 >5%  Industry median -0.5 0 1.8 2.1 3.2 3.5
Accelerating global companies toward net zero by 2050
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Accelerating Global Companies toward Net Zero by 2050
Accelerated Action Scenario
Note: We have not included a separate matrix for the Current Trends Scenario, as this scenario reflects the projection of the Starting CAGR and thus consists of having the same CAGR across all periods. Company
 CAGR
 Starting CAGR used
 for projection
2020-
2024
2025-  
2029
2030-
2034
2035-
2039
2040-
2044
2045-
2049
 < -12.5%  Company CAGR 1.8 2.1 1.2 1 1 1
 -12.5% to -7.5%  Company CAGR 1.8 2.1 2.1 1.2 1 1
 -7.5% to -5%  Company CAGR 1.8 2.1 3.2 3.2 3.3 3
 -5% to -2.5%  Company CAGR 1.8 2.1 3.2 4 5 5
 -2.5% to 0%  Industry median 1.8 2.1 3.2 4 5 5
 0% to 2.5%  Industry median 1 2.1 3.2 4 5 5
 2.5% to 5%  Industry median 1 2.1 3.2 4 5 5
 >5%  Industry median 1 2.1 3.2 4 5 5
Accelerating global companies toward net zero by 2050
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39
G2000 SAMPLE
Companies in G2000  
list (n=2000)
MODELLING SAMPLE
Companies with sufficient emissions 
data (at least five years of data between 
2011 and 2020)
(n=1394)
NET ZERO SAMPLE
Companies that have  
a full net zero target
(n=675)
MODELLING & TARGET SAMPLE
Companies with sufficient emissions 
data to be modelled, and targets for at 
least Scopes 1 and 2
(n=827)
10
companies have net 
zero targets, but are 
not in the modelling 
sample
company has sufficient 
emissions data but 
because of difficulties in 
industry alignment is not 
in the modelling sample
Sample: 
Different – but overlapping – 
samples are used in the analysis, 
depending on the area of enquiry. Our universe of companies is the 
G2000, but as we do not have all 
the data for each company, sub-
sets are used where necessary.


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LEADING COMPANIES
Companies with best practices 
(see description)  
(n=109)
1
Accelerating global companies toward net zero by 2050
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References
1 COP26 Presidency Outcomes, “The 
Glasgow Climate Pact. (n.d.), United Nations 
Climate Change Conference UK 2021”, 2021 
2 European Parliament News, “New social 
and environmental reporting rules for large 
companies”, June 21, 2022 
3 ”UK to enshrine mandatory climate 
disclosures for largest companies in law”, 
October 29, 2021 
4 The Guardian, “Greve, J.: Senate passes 
$739 billion healthcare and climate bill after 
months of wrangling”, August 7, 2022
5 IPCC report, “Cooper, N. and White, A.: 
Urgent climate action needed to halve 
emissions by 2030.


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World Economic 
Forum”, April 6, 2022
6 Accenture Research analysis, “Accenture 
CXO Survey Wave 6”, June, 2022
7 Accenture, “Ollagnier, J., Timmermans, 
K., and Brueckner, M.: From disruption to 
reinvention: the future of supply chains in 
Europe”, May 23, 2022
8 US Bureau of Labor Statistics,  
” Job Openings and Labor Turnover Survey”, 
Accessed October 6, 2002 
9 IMF Staff Discussion Note, Labor Market 
Tightness in Advanced Economies, March 
31, 2022 
10 Accenture Research analysis, “Accenture 
CXO Survey Wave 6”, June, 2022
11 “Science-based Targets website—
companies taking action”, 2022
12 Bloomberg NEF, “Renewable energy sector 
defies supply chain challenges to hit a 
record first-half for new investment”, August 
2, 2022
13 Naturgy, “2021 Sustainability Report”, 2021
14 Siemens, “2021 Sustainability Report”, 2021
15 CVS Health, ESG report, 2021
16 HP, “2021 Sustainable Impact Report”, 2021
17 Suntory, “CSR Report 2021”, 2021
18 Mahindra & Mahindra, “Annual Report 
2020-2021”, 2021
Accelerating global companies toward net zero by 2050
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41
Accelerating Global Companies toward Net Zero by 2050
About Accenture
Accenture is a global professional services company with leading capabilities in 
digital, cloud and security. Combining unmatched experience and specialized 
skills across more than 40 industries, we offer Strategy and Consulting, 
Technology and Operations services and Accenture Song — all powered by 
the world’s largest network of Advanced Technology and Intelligent Operations 
centers. Our 721,000 people deliver on the promise of technology and human 
ingenuity every day, serving clients in more than 120 countries.


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We embrace 
the power of change to create value and shared success for our clients, people, 
shareholders, partners and communities. Visit us at www.accenture.com
About Accenture Research
Accenture Research creates thought leadership about the most pressing 
business issues organizations face. Combining innovative research techniques, 
such as data science-led analysis, with a deep understanding of industry and 
technology, our team of 300 researchers in 20 countries publish hundreds of 
reports, articles and points of view every year. Our thought-provoking research 
developed with world leading organizations helps our clients embrace change, 
create value, and deliver on the power of technology and human ingenuity.


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This content is provided for general information purposes and is not intended to be used in place of consultation with our professional 
advisors. This document refers to marks owned by third parties. All such third-party marks are the property of their respective owners. No sponsorship, endorsement or approval of this content by the owners of such marks is intended, expressed or implied. Copyright © 2022 Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture. Accelerating global companies toward net zero by 2050
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/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_PWC How to build a sustainable city at scale Berlin.pdf


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8/11/23, 10:28 AM How to build a sustainable city at scale
https://www.strategy-business.com/article/How-to-build-a-sustainable-city-at-scale 1/8
Tech & innovation
How to build a sustainable city
at scale
A new net-zero model neighborhood is taking off in Berlin. by Raymond Colitt July 24, 2023
A series of giant white X’s painted on the tarmac in Berlin’s city center signals to pilots that
the landing strip of the historic Tegel aerodrome, a product of the 1948 Soviet blockade of
Photograph by Andriy Onufriyenko


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the city, is permanently shut. But look closer and there are plenty of signs of a new
enterprise taking oﬀ: Berlin TXL, in planning for more than a decade, is now emerging as
one of the biggest and perhaps most ambitious urban development projects in Europe. Named for the old airport’s three-letter identifying code, TXL is already home to startups,
and, when complete, it will have a university campus and housing for 10,000 people who
won’t have to walk more than ﬁve minutes to get to shops, schools, and medical facilities. In eﬀect, Berlin TXL is an €8 billion–plus (US$8.6 billion) sandbox for ﬁguring out
sustainable urban development at scale. Its goal is to show that construction can be
carbon-neutral, technology can add to quality of life without crossing privacy borders, and
climate-proof housing can be aﬀordable.


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As PwC’s 2023 report Building sustainable cities:
How urban infrastructure can address energy challenges and shocks makes clear, the way
that existing and entirely new cities shape their energy infrastructure—and especially the
degree to which they can use alternative fuels to power their operations—will have a
deﬁning impact on our ability to move beyond fossil fuels over the coming decades. Cities
will be the stage on which the transition to net-zero emissions is played out. “We’re testing how cities of the future can be built, developing a model quarter that’s
sustainable and inclusive,” Gudrun Sack told me. Sack is managing director of Tegel
Projekt GmbH, a state-owned business commissioned by the city of Berlin to develop and
manage Berlin TXL. She sees the project as a possible path for other developments: “We
can’t continue building the way we have, and that’s what TXL is—an example to show that
it can be done diﬀerently.”
According to the United Nations, cities consume about 78% of the world’s energy and
account for more than 60% of global greenhouse gas emissions. Urban transport alone
accounts for the equivalent of 4 billion metric tons of CO emissions, which is more than
40% of the transport sector’s total emissions, according to the International Energy
Agency.


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Several big cities have made considerable strides in moving toward net zero. Paris plans to
restrict access to its center for some cars in 2024.


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Mexico City, this year, will complete one
of the world’s largest urban solar farms on the roof of the municipal wholesale market. Burlington, in the US state of Vermont, obtains all its electricity from renewable sources,
albeit to a large extent by burning wood. Woven City, located in Japan and sponsored by
Toyota, is to be a type of living laboratory for new mobility technologies. And Fishermans
Bend is an urban renewal project set to be completed by 2050 in Melbourne, Australia,
that shares some of the objectives of Berlin TXL. But TXL is unique in many ways, not least because of its scope and location.


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So how will it
address the challenges of remaining sustainable? Innovation rules
Berlin wants to be climate-neutral by 2045. For Berlin TXL, that means adhering to the so-
called triple-zero strategy: erect buildings that consume zero energy, emit zero carbon,
and leave behind zero waste. The aim is that the use of energy-intensive concrete, steel,
and plastic will be kept to a minimum. Instead, the project’s residential quarter will be built primarily with lumber from forests
surrounding the city. Costs may initially exceed those of conventional materials, in part
because the manufacturing process is still labor-intensive. But scaling timber construction
to an industrial level through digitized processes and open standards could reduce costs by
around 20 to 25% in the medium term, according to a study by the Technical University of
Berlin and the Fraunhofer Institute for Wood Research. And wood constructions are highly
eﬀective carbon sinks, meaning that for many years they bind potential greenhouse gases
that would otherwise be emitted, were the trees to decompose naturally or burn. “City quarters could thus become huge CO stores and have a positive eﬀect on the
climate,” I was told by Philipp Bouteiller, who, as chief of Tegel Projekt GmbH for a decade
2


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through 2022, was one of the intellectual architects behind TXL. And there’s room to run:
while 92% of new homes in the US are wood-framed, in Germany, wood houses make up
less than 20% of all new homes.


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The Schumacher Quarter, the residential sector within the TXL project, is earmarked to
have 5,000 climate-neutral apartments. “We know that heat pumps work, we know that
fuel cells work—what we need to demonstrate is the entire system, that everything works
together in an entire district,” said Jürgen Peterseim, Berlin-based director in sustainability
services at PwC Germany and coauthor of Building sustainable cities, when I asked him
about the project. “There are still people who say in a complete system it doesn’t work, so it
needs to be shown once and for all that it does work.”
(Making it work would be a historic endeavor in more ways than one: to prepare the
Schumacher site, salvage crews are busy recovering tons of unexploded ordnance from
two world wars and a shooting range used by the kaiser’s army until the end of the 19th
century.)
We know that heat pumps work, we know that fuel
cells work—what we need to demonstrate is the entire
system, that everything works together in an entire
district.”
“


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Industrial action
Elsewhere, the TXL sandbox is alive with industrial activity. Past the rust-orange and lime-
green main hangar, engineers test autonomous vehicles as they maneuver through
obstacle courses.


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Other startups, too, have set up shop in the Urban Tech Republic, an
industrial and research park within TXL aimed at developing clean urban technologies. These organizations include HH2E, a hydrogen and renewable energy developer, and Futr
Hut, a think tank for developing innovative materials and timber construction practices. EasyMile, a Toulouse, France–based driverless technology company, which originally set
up shop at TXL to do maintenance on vehicles for the old site’s airline clients, is expanding
operations in the new environment. “TXL is really convenient, because we have oﬃce
space, a workshop, and testing grounds all in the same place—you don’t often ﬁnd that,”
Nathalie Teer, head of strategic aﬀairs at EasyMile, told me. “We’re considering expanding
our R&D operations to Germany, and if we do that, the startup vibe would be really
interesting. That sort of ecosystem makes a diﬀerence.” (Vay, an autonomous mobility
company housed at TXL, drove the ﬁrst remotely steered vehicle on a public road in Europe
in February.)
The whole Urban Tech precinct will have what is called a low-energy network, a heating
system comprised of water pipes that travels through the entire precinct and ﬂows at
temperatures of 40 degrees Celsius in the winter and 20 degrees in the summer. Compared
to standard district heating, with ﬂow temperatures of up to 100 degrees, the low-energy
network has far lower losses. The whole system will be implemented in a public–private
partnership between the Germany-based multinational E.ON and the city-owned utility
Berliner Stadtwerke in time for completion of the ﬁrst apartments in 2028. Building trust, too
For any smart city to have the support and conﬁdence of its residents, it needs to be
transparent, particularly with its technologies and data.


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data privacy and AI-driven monitoring, the system running TXL will be open-source coded
and feature a showroom so that residents can better understand and learn ways to beneﬁt
from technology and data. Part of that system is already on display at an info center that
was opened in April 2023.


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Digitizing so many aspects of life will create not just a smart city but, in some ways, a smart
society. For example, sensors that continuously measure the ﬂow of bicycles and
pedestrians can provide wheelchair users options for the least-crowded path; the same
sensors can monitor open parking spaces or public transport departure times at mobility
centers to maximize eﬃciency. AI will also process data to help manage rainwater storage according to the “sponge city”
principle, which aims to protect against more extreme weather, be it heavy rain, drought,
or heat. Instead of rainwater being channeled into canals, it will be directed to planted
rooftops, ﬂood plains, and underground storage that all help cool the city on hot summer
days, thus promoting climate change adaptation. Berlin TXL expects to use rainwater to
help create its own microclimate. The goal is for the whole area to generate at least as
much energy and water as is consumed. Add to that a system of motion-triggered cameras
to monitor local fauna, as well as heat sensors and aerial photography to study the
microclimates and plant life, and you have a real-time laboratory that will allow climate
technologies to continuously adapt to the changing environment, an approach also called
climate resilience. ESG with a capital S
All this activity has drawn massive international interest.


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Sack, the project’s managing
director, said she gets roughly 50 to 100 visitors each week, mostly city planners and
politicians (including US Secretary of Housing and Urban Development Marcia Fudge in
September 2022). Many come to see the project not only for its sustainable technology but
also its broader environmental, social, and governance (ESG) policies, including targets
for social equality and diversity.


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Since the fall of the Berlin Wall in 1989, the city has witnessed its share of large-scale
development projects, as it essentially rebuilt much of its center and the former East
Berlin. But not all of the projects were successful.


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Plans for another former airport,
Tempelhof, were botched, ﬁrst because of a lack of citizen participation and then because
of a very decisive public vote against any development. The new Berlin Brandenburg Airport, southeast of the nation’s capital, was delayed for
nine years due largely to poor planning and a lack of oversight. That won’t be the case at
Berlin TXL, said Sack.


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“Berlin has learned a lot from the past. The fact that Berlin TXL is
better positioned may have to do with the mistakes that were made in the past,” she told
me. “After this long planning phase, it is important to me that we can get started now. We
have to start boldly, and then we’ll see how it goes.”
Author profile:
Topics:
design infrastructure innovation sustainability urbanization
Raymond Colitt is a journalist with three decades of experience reporting, writing, and editing
stories from around the globe, including Brazil, Germany, and the US. He has worked for
the Financial Times, Reuters, and Bloomberg and currently divides his time between Berlin, Los
Angeles, and Brasilia.


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©2023 PwC. All rights reserved.


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/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_McKinsey It’s time to scale up natural climate solutions—here’s how.pdf


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8/11/23, 10:49 AM It’s time to scale up natural climate solutions—here’s how
https://www.mckinsey.com/capabilities/sustainability/our-insights/sustainability-blog/its-time-to-scale-up-natural-climate-solutions-heres-how 1/6
Holding the rise of global temperatures to 1.5 degrees Celsius above preindustrial
averages, an ambition specied in the Paris Agreement, will require cutting net
emissions of greenhouse gases roughly in half by 2030 and to zero by 2050. By Joshua Katz
Advises companies across the food-and-agriculture value chain on strategy and M&A and works
closely with investors and investor-owned companies to identify and execute on food-and-
agriculture opportunities globally
By Peter Mannion
Supports clients in developing and delivering sustainability-related strategies, with a focus on
corporate climate strategy, agriculture, carbon markets, and carbon removals
June 4, 2021-Holding the rise of global temperatures to 1.5 degrees Celsius
above preindustrial averages, an ambition specied in the Paris Agreement,
will require cutting net emissions of greenhouse gases roughly in half by
2030 and to zero by 2050. This environmental priority is converging with
another one: the protection of nature, which sustains over half of the global
economy.


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Both priorities, while formidable, can nevertheless be met with
various solutions. Of these, one group has noteworthy promise: natural
climate solutions (NCS), which consist of conservation, restoration, and land-
management actions that either prevent emissions or remove carbon dioxide
from the atmosphere.   


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8/11/23, 10:49 AM It’s time to scale up natural climate solutions—here’s how
https://www.mckinsey.com/capabilities/sustainability/our-insights/sustainability-blog/its-time-to-scale-up-natural-climate-solutions-heres-how 2/6
Analysis by the World Economic Forum and McKinsey suggests that NCS
could provide up to one-third of the emissions reduction needed to achieve a
1.5-degree pathway—at a lower cost than other methods of emissions
abatement—while also stemming the loss of nature. Based on a recent report
from the Forum and McKinsey, here is a look at why NCS oer so much
potential, and how companies, governments, and other stakeholders can
bring NCS to scale. Video
What are natural climate solutions? In 2020, the carbon credits from NCS that were purchased on voluntary
markets accounted for the abatement of about 32 MtCO of emissions. That
amount represents about 40 percent of all the voluntary carbon credits that
were retired—considerably more than the 5 percent of carbon credits,
equivalent to 0.35 MtCO, that NCS yielded in 2010. The increase in demand for NCS credits could continue. Net-zero
commitments by companies have more than doubled in the past year, and the
scale of NCS and oset pledges is rising accordingly. Based on net-zero
pledges from more than 700 large companies, there are already
commitments to buy about 0.2 GtCO of carbon credits by 2030. Companies such as Unilever and PepsiCo have committed specically to
using NCS to satisfy demand for carbon credits.


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For example, Amazon is investing $10 million to restore 1.6
million hectares of forest in the United States, and Nestlé is investing in
ending deforestation and forest restoration in Ghana and Côte d’lvoire. 2
2
2


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While exact estimates vary, to reach a 1.5- or 2-degree warming pathway by
2030 would require a roughly 50 percent reduction of net emissions—about
23 Gt CO—by that year from 2019 levels. NCS could deliver up to one-third
of this net emission reduction, from eight high-potential solutions.


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Abating emissions with NCS typically costs less than technological solutions
such as carbon capture, utilization, and storage. What’s more, many forms of
NCS are available to be deployed immediately, without technological
breakthroughs. In most cases, NCS cost between $10 and $40 per ton of
CO, with variations between geographies and project types. Avoided
deforestation has the greatest abatement potential overall, but also some of
the highest costs (for example, approximately $30 per ton of CO in Brazil
and Indonesia). Another reason why NCS deserve attention is that investments in nature can,
if made well, produce an array of co-benets in addition to emissions
abatement. Analysis carried out by the Woodwell Climate Research Center
shows that the three largest NCS, by emissions-abatement potential, also
have environmental co-benets for biodiversity, soil health, and water quality. Scaling up natural climate solutions can therefore help close the biodiversity–
nance gap, which was recently estimated at between $722 billion and $967
billion per year over the next 10 years. At 7 GtCO in annual potential by
2030, at an illustrative price per ton of $20, capital ows toward NCS could
exceed $100 billion. Opportunities to deploy these funds exist across the world, especially in the
Global South.


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resilience that NCS can create. Restored coastal wetlands, for example, can
absorb incoming wave energy, reduce ood damage, and provide protection
from storms; healthier soil increases the resilience of cropland; and re
management can mitigate the risk of catastrophic wildres. While NCS have ample potential to help address climate change and nature
loss, some technical and conceptual hurdles, as well as institutional failures
and poor experiences of past schemes, have undermined stakeholders’
condence that NCS can be eective. Six actions can help overcome these
challenges and create certainty for buyers, suppliers, and regulators.


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. Dene net-zero and corporate claims—There is an urgent need to clarify
the role of NCS in sector-specic net-zero strategies. One possible
approach involves a company using carbon credits to compensate for its
entire footprint today, as an interim measure while on a transition pathway
towards net zero. Truly unavoidable emissions after full decarbonization
could be oset only with removal credits, and companies taking this path
could claim net zero. .


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Highlight good practice for supply—In recent years, concerns about the
validity of NCS credits have been raised repeatedly. Most notably, there are
questions about the additionality of NCS projects (meaning whether the
emission reduction would have occurred without a carbon-crediting
program). To expand quality supply, participants in these ecosystems will
need to highlight good practices for mitigating environmental and social
risks so that others can follow the same course.


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. Send a demand signal—Carbon markets in general and NCS markets in
particular have experienced years of oversupply and low prices.


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A demand
signal would unlock the supplies needed to meet net-zero announcements. It would require high emitters coming together to prioritize NCS credits with
high co-benets over other types of credits. In practical terms, this means a
willingness to pay a premium.


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. Improve market architecture—Several interventions identied by the
Taskforce on Scaling Voluntary Carbon Markets would help create an
appropriate infrastructure for NCS markets. One is creating reference
contracts that dene the additional attributes of a carbon credit (such as
source, region, and co-benets) so these can be priced along with avoided
emissions. Others call for creating registries to aggregate market data,
developing high-volume trading infrastructure, improving liquidity and
nancing, and supporting intermediaries that can aggregate supplies of
credits for buyers.


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. Create regulatory clarity—While many barriers to scaling up NCS are
technical, others are political. Overcoming these requires stakeholder
collaboration, international consensus-building, and coherent policy
frameworks in line with international climate goals. Countries can help build
domestic markets for NCS; implementation and accounting methods for
projects need to be claried; voluntary and compliance markets for carbon
credits need to be connected; and international markets could facilitate
cross-border transfers and capital ows. . Build trust—While there is disagreement about some conceptual
approaches to using NCS, there is general agreement on the need for NCS
as part of a net-zero strategy as well as the urgency to provide new sources
of nance for forests. A coalition of high-level champions could amplify best
practices, highlight advances in measurement and verication to increase
credibility, and endorse scientic advances towards net-zero certication.


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NCS can help address the converging crises of climate change and nature
loss, while delivering sustainable development in line with the United Nations
Sustainable Development Goals (SDGs). If businesses, governments, and
civil-society organizations combine their eorts, they can create the
mechanisms, guidelines, and condence that are needed to unlock markets
for high-quality NCS and accelerate their growth.


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Contents
Foreword
Executive summary
1 Securing the energy transition – a perpetual priority
1.1  Energy security in the context of an effective energy transition
1.2  The current energy crisis highlights the underlying structural insecurities 
that have been years in the making
1.3  Landscape of emerging risks to energy systems is changing fast
2 Energy crisis as a catalyst for the energy transition
2.1 Ten actions to align energy crisis responses with energy transition
3 Emerging energy security dimensions in a time of transition
3.1 Supply security
3.2 Demand management
3.3 Market and regulatory measures
3.4 Global and regional trust
3.5 System stability
3.6 System security
Conclusion
Acknowledgements
Annex I Energy Transition Index (ETI) framework methodology
Endnotes
3
4
6
7
9 
14
15
16
21
23
26
29
33
34
36
38
40
41
42
Disclaimer 
This document is published by the World 
Economic Forum as a contribution to a 
project, insight area or interaction. The 
findings, interpretations and conclusions 
expressed herein are a result of a 
collaborative process facilitated and 
endorsed by the World Economic Forum 
but whose results do not necessarily 
represent the views of the World Economic 
Forum, nor the entirety of its Members, 
Partners or other stakeholders.


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© 2023 World Economic Forum. All rights 
reserved. No part of this publication may 
be reproduced or transmitted in any form 
or by any means, including photocopying 
and recording, or by any information 
storage and retrieval system. Cover: @imaginima/Gettyimages
Securing the Energy Transition
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Foreword
Energy security is one of the key pillars of energy 
system performance, a primary concern for 
governments and economic players across the 
globe, and a dimension whose impacts multiply 
across supply chains, countries and international 
systems. People, companies and nations depend 
on secure and uninterrupted access to energy at 
affordable prices.


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Yet, we are in the middle of an unprecedented 
energy crisis, afflicting countries across the world 
with cascading macroeconomic implications. Worse 
still, this energy crisis is hitting a world left more 
vulnerable by the COVID-19 pandemic, during a 
full-fledged global energy transition process. It is 
clear from the current crisis that several distinct 
dimensions of energy security remain unaddressed. We need a new strategic perspective to effectively 
assess and monitor global energy security on an 
ongoing basis. During the past months, short-term measures 
implemented by countries to address the energy 
crisis include fuel substitution, market interventions, 
fiscal measures and voluntary demand-reduction. These actions may address immediate security 
needs. But unless they are aligned with a long-term 
energy transition – based on goals of sustainability, 
economic growth and justice – they will offer only a 
patchwork solution. The challenges underpinning today’s energy context 
are so complex and interconnected that they can 
only be resolved with structural solutions. Relying 
on short-term fixes will potentially hamper the 
transition to a sustainable, clean and affordable 
energy system.


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However, this energy crisis also provides 
an opportunity for countries to redesign their 
approach to energy security, in light of advancing 
technologies and a changing fuel landscape. The objective of this report is to understand 
how energy security has evolved amid the 
current crisis and against a backdrop of the 
ongoing energy transition. It reflects on the 
long-term sustainability of measures currently 
being deployed and proposes 10 ways to align 
immediate interventions with the long-term energy 
transition. It also proposes a structured framework 
to balance energy security as part of the effective 
energy transition. An exceptional level of multi-stakeholder 
collaboration is necessary. Governments are 
primarily responsible for ensuring their countries’ 
energy security. But addressing this crisis in 
a sustainable manner must involve everyone.


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Companies, international organizations and 
individual consumers all play critical roles. We offer this framework to help foster global 
common ground on ways forward for the energy 
sector to support much needed, co-ordinated 
stakeholder action at speed and scale. What is now 
a global crisis could become an opportunity to steer 
a more direct course towards a secure, sustainable 
and affordable energy future for everyone. Roberto Bocca 
Head of Shaping the  
Future of Energy,  
Materials and Infrastructure, 
World Economic Forum
Muqsit Ashraf 
Global Lead, 
Accenture Strategy
Securing the Energy Transition
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Executive summary
Space for Net Zero 4
Energy security and climate goals are not 
mutually exclusive. The energy crisis should not 
derail the energy transition – but the emerging 
energy system requires a new strategic 
approach to secure the transition.


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Energy security and affordability present global 
challenges, but both are integral elements of a 
successful energy transition, alongside sustainability 
to mitigate climate change. The current energy 
crisis is driving inflation, slowing economic growth 
and contributing to social turmoil. Some choices made by countries in response to 
the crisis, such as improving energy efficiency and 
scaling renewables, will be beneficial for the wider 
energy transition. But other actions – including 
increased production of electricity from coal and 
broad-based consumption subsidies – put long-
term energy transition imperatives at risk, while 
leaving those countries more vulnerable to future 
crises and putting global climate goals out of reach. The energy crisis highlights the impact of trends 
and structural challenges that have been years 
in the making. It is a consequence of factors that 
include underinvestment in the energy system and 
its transition over many years, as well as shocks 
induced by COVID-19. The global pandemic led 
to a historically sharp drop in energy demand 
and investment in 2020. While post-pandemic 
demand rebounded in 2021, global energy supply 
and investment were unable to keep up. Climate 
change-induced extreme weather events, such as 
wildfires, heatwaves and droughts further strained 
the conventional energy infrastructure. Energy markets and systems were therefore already 
under pressure when Russia started its war in 
Ukraine. The war’s shock waves were felt throughout 
interconnected energy markets and led to a global 
energy crisis with severe economic consequences. Short-term responses to the crisis have pushed 
global CO2 emissions to record highs1 as several 
countries have reverted to coal for power generation 
in a bid to save their natural gas for other uses. Policies to mitigate the impacts of rising energy prices 
have stressed public finances and led to emergency 
energy curtailment. To pursue the energy transition 
at pace, short-term interventions should align with 
climate goals, protect market signals, target fiscal 
discipline and incentivize demand response. As the energy transition unfolds, shifts in 
technology, commodities, infrastructure and supply 
chains, along with geopolitical dynamics, will 
create new security constraints. A comprehensive 
reappraisal of energy security is necessary, to build 
resilience to potential shocks. Without a robust 
framework and a clear articulation of stakeholder 
roles within that framework, it would be challenging 
to co-ordinate the collective action necessary. This paper proposes 10 ways to align immediate 
interventions with the long-term energy transition, 
along with a comprehensive framework to highlight 
how energy security can be strengthened in a way 
that responds to the crisis and helps accelerate 
a just and sustainable energy transition. The 
framework features the following elements:
Supply security:
Conventionally, these actions have involved 
reducing import dependence by boosting 
domestic self-sufficiency.


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Increasing the 
domestic low-carbon energy mix and 
diversifying fuel and renewable energy systems 
can address both security and sustainability 
needs. Securing the supply chain for critical 
materials is another key pillar in supply security, 
as progress on clean-energy technologies is 
heavily reliant on affordable and sustainable 
access to these materials. Demand management:
Rapid demand-side responses have included 
consumption curtailment actions.


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Demand-side 
management must now include incentives to 
shift energy demand permanently towards clean 
energy, as well as initiatives to drive energy 
efficiency, materials efficiency, electrification, 
behavioural change, digitalization and demand-
response programmes at scale. Markets and regulation:
The current landscape forms the basis for 
directing the capital allocation necessary 
for the energy transition.


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Policy structures 
and incentives play a crucial role by driving 
innovation and scale, and by shaping the 
Securing the Energy Transition
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energy systems to accommodate new 
technologies. A transparent and predictable 
regulatory landscape is a pre-requisite 
to manage and accelerate clean energy 
investments, while co-ordinating the 
retirement and reuse of existing infrastructure. For example, liquefied natural gas (LNG) 
regasification assets should be designed or 
retrofitted to ensure compatibility with future 
low-carbon fuel infrastructure. Global and regional trust:
Trust enables countries to rely on diverse 
energy supply sources, invest in cross-border 
super grids, increase trade in low-carbon 
power, manage cross-border carbon emissions 
and enhance system flexibility – all while 
deploying effective energy security plans.


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Trust 
and collaboration are needed to reduce risks 
and the cost of capital for the transition; they 
are also needed to set up new international 
centres of expertise in finance and technology, 
to help countries share knowledge on energy 
supply chains, privacy and the cyber challenges 
of the future. System stability:
This enables energy systems to withstand 
operational disturbances, such as grid 
outages, planned maintenance, extreme 
weather events or financial shocks (e.g.


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price 
volatility). Stability enhancements, which 
strengthen the reliability and resilience of the 
system, have never been more important or 
more challenging. For example, a key enabler 
of energy security is an increased reliance 
on distributed solar and wind. However, 
introducing more wind and solar in turn brings 
additional requirements for system stability, 
such as grid modernization, greater energy 
storage and backup generation capabilities. System security:
Security of energy systems is evolving from 
a focus on physical security and protection 
of critical infrastructure towards protection 
from cyber threats, defence of critical supply 
chains and resilience to climate risks. Delivering 
on energy security requires effective risk 
management across both traditional and 
emerging priority areas of energy security. A comprehensive and long-term approach helps to 
strengthen energy security in the face of changing 
risks and to embed security-by-design in the overall 
transitioning of energy systems. This white paper 
highlights the imperative to focus on solutions that 
advance both security and sustainability ambitions 
and calls for an acceleration of strategies that can 
deliver speed and scale. Securing the Energy Transition
5


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Below: @Leonid Ikan/Gettyimages
Securing the 
energy transition – 
a perpetual priority 
1
War in Ukraine and accelerating climate shocks 
have exploited pre-existing weaknesses in energy 
systems and have exposed vulnerabilities in 
the world’s energy mix. A successful transition 
cannot happen without a secure energy system.


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Energy
triangle
Security Sustainability
Equity
A reliable, uninterrupted, evolving energy system that can 
withstand and respond to demand-supply dynamics and 
recover rapidly from disruptions. An energy system that is consumption-conscious and 
decarbonized, supporting the ambition of a cleaner and less 
polluted earth for current and future generations. An energy system in which energy is fairly distributed, 
accessible and affordable; a system in which sustainability 
initiatives (and beneﬁts) are shared to enable inclusive, 
equitable economic growth and improved standards of living. Sustainability
Equity
Security
Energy security is defined2 as the uninterrupted 
availability of energy sources at an affordable 
price. During the current energy crisis, it has risen 
to dominate the headlines due to energy market 
volatilities and supply disruptions. An effective energy transition is a timely transition 
towards a more inclusive, sustainable, affordable and 
secure energy system – one that addresses global 
energy-related challenges, creates value for business 
and society, and balances the three dimensions of 
the energy triangle: Equity, Security and Sustainability. The ongoing energy crisis has impacted all 
three dimensions of the energy triangle.


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Supply 
disruptions have forced some economies to delay 
coal phase-outs, to expand LNG infrastructure or 
to invest in new hydrocarbon assets. Meanwhile, 
high energy prices are contributing to inflation (with 
87% of emerging and developing economies, and 
100% of advanced economies seeing inflation 
above national targets in 2022) 3 and reducing 
global GDP by between 2.8% and 3.6% – an 
impact which, coupled with falling incomes and 
rising interest rates, could potentially push 
economies into recession.4
The World Economic Forum’s Energy Transition 
Index (ETI)6 looks at countries’ energy systems 
performance and their readiness for an effective 
energy transition. One of the ETI’s central insights 
is that energy security and energy transition go 
together (see Figure 2). On average, from 2010-
2022, 63% of leading countries (those with well-
performing energy systems and high transition 
readiness) have also led in energy security (defined 
by a country’s net energy imports dependence, 
diversity of import partners and diversity of total 
energy supply). The twin concept of energy 
transition and energy security cannot be delinked.


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Energy security in the context of 
an effective energy transition
1.1
The energy triangleFIGURE 1
Source: World Economic 
Forum, Energy Transition 
Index (ETI) 2022
One of the central insights from the Forum’s Energy Transition Index is that energy 
security and energy transition go together
Securing the Energy Transition
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Energy Transition Index score (2010-2022) average
Energy security score (2010-2022) average
20 30 40 50 60 70 80 90 100
20
30
40
50
60
70
80
90
100
Potential challengesCountry archetypes EmergingLeapfrogLeading
Energy security versus Energy Transition Index score (average 2010-2022)FIGURE 2
Note: Refer to Appendix for 
ETI methodology; analysis 
from World Economic 
Forum’s ETI 2010-2022. Below:@CharlieChesvick/
Gettyimages
Securing the Energy Transition
8


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Percentage of countries with fuel import dependence (>70%) on top three trade partners Top import partners’ regions
Latin America &
the Caribbean
Commonwealth of 
Independent States
Emerging & 
developing Europe
0 10 20 30 40 50 60 70 80 90 100
Emerging & 
developing Asia
Middle East & North 
Africa (MENA)
Sub-Saharan 
Africa
Advanced 
economies
Latin America & the Caribbean, 
North America
Russia, Central Asia & 
MENA
Russia, Europe & Central 
Asia, MENA
East Asia & Paciﬁc, Europe & 
Central Asia, MENA
MENA, Europe & 
Central Asia
Europe & 
North America
Europe, Russia & 
North America
86%
67%
64%
56%
38%
35%
28%
Distant nuclear considerationsE
A
Vulnerability from limited import partner diversification
Inadequate penetration of renewable and low-carbon energy sources to compensate for 
the drop in fossil fuel supplies
Slow progress on energy efficiency
Reduced investment in upstream oil and gas
A
B
C
D
Energy security has always been a strategic 
priority, but an era of supply abundance resulted in 
some regions paying less attention to security and 
underinvesting in legacy energy sources and overall 
system resilience. Long-term vulnerabilities coupled 
with short-term, unforeseen events have created a 
crisis on top of a crisis.


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Countries that experience energy security challenges 
have typically failed to diversify either their domestic 
energy mix or their energy import partners, or 
both. The Forum’s 2022 Energy Transition Index 
(ETI) reveals that out of 29 advanced economies, 
eight countries have fuel import dependency on 
just three trade partners for over 70% of their net 
energy imports. Of these eight countries, seven are 
in Europe. Figure 3 illustrates that countries with low 
diversification in the number of import counterparts 
are more exposed to supply disruptions from adverse 
climatic, geopolitical and supply chain events. Long-term pre-existing vulnerabilities include the following:
The current energy crisis highlights 
the underlying structural vulnerabilities 
that have been years in the making
Long-term pre-existing vulnerabilities
1.2
Fuel import diversificationFIGURE 3
Vulnerability from limited import partner diversification
Note: Analysis from World Economic Forum’s ETI 2022. Securing the Energy Transition 9


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B Inadequate penetration of renewable and low-carbon energy sources to compensate for the 
drop in fossil fuel supplies
Slow progress on energy efficiencyC
Year
Global consumption (TWh)
1900
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Oil
Biofuels
Other renewables
Solar
Wind
Nuclear
Traditional biomass
Hydropower
Gas
Coal
From 2015 (when the Paris Agreement was adopted) 
to 2020, investments in energy transitions remained 
flat at around $1 trillion per year. That falls far short 
of the $4 trillion or more which the International 
Energy Agency5 (IEA) says is needed annually to 
bring about a peak and decline in fossil fuel demand, 
and to support the creation of a clean, sustainable 
energy system. Figure 4 showcases the world’s 
ongoing dependence on fossil fuels, which remains 
stubbornly fixed at around 80% today. Insufficient investments in energy efficiency and 
demand-side responses have compromised the 
flexibility of the energy system and led to higher 
levels of energy demand than would have been 
the case with a stronger, sustained emphasis on 
efficiency.


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While strong economic growth over 
much of the last decade has been accompanied 
by growth in energy demand from industry and 
households, progress in energy efficiency has 
lagged. Over the past five years, the rate of 
energy efficiency improvements averaged 1% per 
year, well short of the 4% annual improvement 
required under the IEA’s net zero emissions (NZE) 
by 2050 scenario. 7 
The $1 trillion per year invested from 2015-2020 in the energy transition falls far short 
of the $4 trillion or more per year which the IEA says is needed to reduce fossil fuel 
demand and support a clean, sustainable energy system
Global primary energy consumption by source (1900-2021),6 showcasing ongoing 
dependence on fossil fuels
FIGURE 4
Source: Our World in Data, 
2022. Securing the Energy Transition
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D Reduced investment in upstream oil and gas
E Distant nuclear considerations
Year
$ billions
200
400
600
800
20222021202020192018201720162015
-29% -23%
417
384
353
499
526
493484
663
While new investments in hydrocarbons may seem 
at odds with net-zero goals, the immediate need 
for energy security and affordability may prompt 
further investment in fossil fuel projects while the 
system is in transition. Investments in the oil and 
gas sector in 2020-21 were about 26% 8 below 
pre-pandemic levels; 2022 marked the third 
consecutive year of spending shortfalls compared 
to 2019, thus creating tight energy markets  
(see Figure 5). Following the Fukushima disaster in 2011, nuclear 
power fell out of favour in many countries.


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In 
Europe, many states announced nuclear phase-
outs in the following years and centre of gravity 
for nuclear electricity production shifted to Asia. According to the IEA, as of 2019, investment 
in nuclear power was nearly 40% less than the 
spending required in the sustainable development 
scenario (SDS), with the largest gaps in Europe, 
the United States and China. Additionally, 
concerns around nuclear fuel and waste storage 
limited countries from increasing investment. Global investment in upstream oil and gas ($ billions), 2015-2022 FIGURE 5
Source: International Energy 
Agency, World Energy 
Investment 2022. Securing the Energy Transition
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50%
0
100%
Apr-22202120202019
20
9
20
8
55
67
87
100
Advanced economiesEmerging markets and developing economies
The following short-term, unforeseen events have 
aggravated the current energy crisis:
 – A spike in energy prices following the faster-
than-predicted rebound of demand after 
COVID-19 and the exceptional recovery in 
global GDP growth (~5.9%) in 2021.10
 – Amplified demand due to extreme climate 
events, which necessitated longer home-
heating and home-cooling periods in countries 
experiencing temperature changes. – Extreme weather-related natural hazards, 
including droughts, heatwaves, lower 
than average wind speeds and extreme 
temperatures, which exposed the vulnerability 
of grids.


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In addition, more frequent and intense 
climate events have left those affected little time 
to recover between disasters. – Growing cyber threats targeting grid 
infrastructure, nuclear plants, gas pipelines and 
safety systems for oil production operations 
over the past five years have elevated system 
security concerns. With a system already left vulnerable by the long-
term insecurities and short-term shocks outlined 
above, it is perhaps not surprising that the Russia-
Ukraine war then sparked a global energy crisis, 
leaving countries scrambling to secure supply and 
ensure affordability. The war has also disrupted 
global trade, pushing up transport costs and limiting 
farmers’ access to agricultural supplies such as 
fertilizers.


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The soaring prices of global energy and 
food have in turn triggered cascading effects11 on 
inflation, economic growth and food security. As of April 2022, every advanced economy and 
87% of emerging and developing economies 
were experiencing above-target inflation (see 
Figure 6). The prospects for global GDP growth 
have shrunk from over 5.5% in 2021 to just 1.5% 
in 2023 (see Figure 7). Meanwhile, the number 
of people suffering from acute food insecurity 
around the world is expected to increase to 205 
million in 2022. 12 
Short-term events exacerbating the crisis
Rising global inflation: % of countries with inflation above target FIGURE 6
Source: The Inflation Factor: 
How Rising Food and 
Energy Prices Impact the 
Economy, September 2022 
(based on data from the 
World Bank). Securing the Energy Transition
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0 1%
2023
2022
2021
2% 3% 4% 5% 6%
Baseline Including Fed tightening Including energy price spike Including China COVID-19
Slower economic growth: global growth scenarios (GDP forecasts %)FIGURE 7
Source: The Inflation Factor: 
How Rising Food and 
Energy Prices Impact the 
Economy, September 2022 
(based on data from the 
World Bank). Below: @Bet_Noire/
Gettyimages
Securing the Energy Transition
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The low-carbon transition is exposing new risks as 
the energy system becomes more decentralized, 
electrified, digitalized and decarbonized. These 
emerging risks are fundamentally different from the 
traditional risks around supply, demand and system 
stability – although these traditional security threats 
remain (see Figure 8).


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The current crisis creates a strong case for a  
longer-term and more holistic view on energy 
security – one that embeds security as a key 
element of a successful transition. Landscape of emerging risks to energy systems is 
changing fast
1.3
Emerging energy security risksFIGURE 8
 – Realigning energy trade flows of renewable energy technologies and components 
 – Rising protectionism 
 – Intellectual property barriers
 – Risks to system reliability and stability due to wide range of power generation and management assets
 – Lack of economies of scale
 – Likelihood of more stranded legacy assets
 – Exposure to more cyber risks, with increasingly connected systems 
 – Digital assets more prone to critical system failures and lack stability to handle fluctuations
 – Unpredictable weather and extreme events (e.g. wildfires, floods, droughts) impact operation of 
renewables, with implications on energy system stability and planning
 – Concentration of minerals in specific locations brings challenges in supply, accessibility, affordability
 – Aggravated by policy push towards diversification
Geopolitics
Decentralization
Digitalization
Physical climate events
Critical minerals supply
Securing the Energy Transition
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Below: @Bim/Gettyimages
Energy crisis as 
a catalyst for the 
energy transition  
2
The current energy crisis provides an opportunity 
for countries to redesign their approach to energy 
security, in light of advancing technologies and a 
changing fuel landscape. Securing the Energy Transition
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The current energy crisis is the first to affect 
the energy system at a truly global scale. After 
a prolonged period of under-investment in 
upstream fossil fuels, there is not enough natural 
gas to make up for supplies traditionally sourced 
from Russia.


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Consequently, countries have 
rushed to secure liquefied natural gas (LNG) 
shipments. Unlike traditional natural gas pipelines 
that connect regions, LNG markets and supply 
chains are connected globally. This means that 
gas price volatility and, by extension, higher 
electricity prices are now affecting countries 
around the world. In fact, 2022 is set to become 
the first year in decades in which the number of 
people without access to electricity will increase 
(a rise of about 20 million in 2022). 13  
The integrated nature of global energy, food  
and industrial supply chains compounds the 
challenges and spreads them across regions.


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In response, governments have taken measures 
to deliver immediate relief. These include fiscal 
measures, energy market interventions,  
demand-management programmes and new  
LNG trade deals and infrastructure development. Many such emergency measures are targeted  
to address near-term energy supply and 
affordability concerns. The emergency measures being enacted now will 
have implications on the future trajectory of the 
energy transition. For example, sunk upstream 
and infrastructure investments, fiscal costs, and 
institutional and behavioural lock-ins may stall 
the transition’s forward momentum. It is therefore 
necessary to align these emergency measures with 
the long-term energy transition goals of sustainability, 
security, affordability and equity. The energy crisis 
presents several opportunities to catalyse the energy 
transition through well-designed, targeted measures. 2022 is set to become the first year in decades in which the number of people without 
access to electricity will increase
The near-term consequences of the energy crisis 
require immediate interventions. Socio-economic 
effects and market shifts resulting from the energy 
crisis offer a window of opportunity to target 
breakthrough progress in the energy transition, by 
aligning immediate interventions with long-term 
energy transition goals.


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There are 10 immediate actions that should 
be taken into consideration, organized around 
four themes of supply reinforcements, demand 
management, fiscal measures and investments, and 
co-ordination and long term strategy. Ten actions to align energy crisis responses with 
energy transition
2.1
Supply reinforcements
Demand management
Fiscal measures and investments
Co-ordination and long-term strategy
A
B
C
D
Securing the Energy Transition
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Supply reinforcementsA
In response to the ongoing natural gas supply-
demand imbalance, countries are ramping 
up domestic gas production, entering new 
energy trade agreements to bolster supply and 
investing in regasification import infrastructure 
facilities. Nonetheless, this new LNG capacity 
will take several years to materialize.


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As a result, 
competition for existing LNG will keep prices 
elevated and increase costs for energy-importing 
countries substantially. The risk is that the high costs of gas will dampen 
investments needed to develop low-carbon 
energy sources, thereby keeping emissions high. It is imperative, therefore, that new fossil fuel 
production is accompanied by a simultaneous 
acceleration in the development of renewable 
energy capacity. For every $1 spent on new 
fossil fuel production and infrastructure, the IEA 
recommends $5 of investment in developing 
renewable energy capacity. 14
Emerging energy-trade relationships should target 
higher levels of diversification than before. Natural 
gas supply disruptions from Russia to Europe 
and subsequent price volatilities in the global 
LNG market have prompted countries to secure 
alternative sources of supply through new bilateral 
energy trade agreements. The energy crisis is expected to accelerate the 
substitution of natural gas with renewable energy, 
shifting the timeline of peak gas demand earlier. However, the long-term outlook for natural gas 
remains positive, as the decline in demand for gas 
in advanced economies is offset by an increase in 
emerging economies. Therefore, concerns around 
energy security necessitate finding new supply 
sources, to address near- and medium-term gas 
demand.


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An over-concentration on a few energy 
suppliers was a key contributor to the current 
energy crisis. As energy trade flows realign, keeping 
diversification as a core tenet of the emerging 
energy-trade matrix can strengthen energy security. Prioritize augmenting supply from renewable energy, keeping fossil fuel 
reinforcements constrained to committed emission reduction targets
Advocate for a diversified energy and trade matrix
1
2
For every $1 spent on new fossil fuel production and infrastructure, the IEA recommends 
$5 of investment in developing renewable energy capacity 
Recent evidence suggests that total methane 
emissions from fossil fuel sources have  
been vastly underestimated. Natural gas,  
for example, consists mainly of methane.


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The climate benefits of natural gas compared  
to coal become marginal if between 3.2% and 
3.4% of the gas produced escapes into the 
atmosphere before combustion. The average 
global leakage rate of methane from gas 
production is estimated to be around 2.2%,  
but some studies into individual gas fields have 
found fugitive emission rates of 6% or more. 15
Addressing methane leaks and non-essential flaring 
from gas production and infrastructure can mitigate 
climate change and strengthen energy security. If potential gas exporters to the EU implemented 
measures to reduce gas flaring and methane leaks, 
it could save the equivalent of one-third of total 
Russian gas exports to the EU in 2021. If exporters to the EU reduced gas flaring and methane leaks, it could save the 
equivalent of one-third of all Russian gas exports to the EU in 2021
Address methane leakage from hydrocarbon supply chains3
Securing the Energy Transition
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Globally, the top 10% of households consume roughly 20 times more energy  
than the bottom 10%
The replacement of gas for industrial and 
residential applications with electricity and 
energy efficiency measures can accelerate 
decarbonization, while making more gas available 
for essential services. The likely high gas prices 
over the next few years will enhance the economic 
feasibility of industrial electrification and energy 
efficiency investments, 16 while improving business 
resilience and competitiveness. Similarly, electric heat pumps are now more  
cost-effective to run than fossil fuel-based  
heating in residential settings, due to high gas 
prices. A co-ordinated policy response17 can  
unlock faster deployment of heat pumps through, 
for example: incentives for home-heating retrofits, 
stable policy signals to encourage heat-pump 
supply, and supporting an ecosystem for financing, 
installation and maintenance of heat pumps. There are extreme levels of inequality in global 
energy consumption, with the top 10% 18 income-
earning households consuming roughly 20 times 
more energy than the bottom 10%.


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Encouraging 
top-end consumers to make simple lifestyle 
changes, such as choosing fuel-efficient or 
electric vehicles, increasing use of public transport 
and energy-efficient housing could reduce their 
energy demands substantially.While behavioural 
barriers have been persistent in energy efficiency 
efforts, the energy crisis is an opportunity to 
nudge consumers towards responsible energy 
consumption through targeted information 
campaigns, regular insights on household energy 
costs and usage, and incentives linked to reducing 
energy consumption. Maximize electrification and energy efficiency to alleviate and decarbonize 
energy demand
Nudge social behaviour towards responsible energy consumption
4
5
Demand managementB
More investments in clean energy need to come from the private sector – including oil 
and gas companies, whose excess profits are estimated to be $4 trillion in 2022
To reach net-zero emissions by 2050, investments 
in clean energy need to triple from the current level 
of $1.2 trillion to $4.4 trillion annually by 2030.19  
That represents approximately 4.5% of current 
global GDP . Given the heavy fiscal burden imposed 
by the energy crisis on governments, more of these 
investments need to come from the private sector 
– including oil and gas producers, whose excess 
profits are estimated to be $4 trillion in 2022.20 
By accelerating their capital deployments in low-
carbon energy sources and technologies, energy 
companies can help bridge the investment gap.


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Additionally, these measures will lower the carbon 
intensity of energy companies’ asset portfolios, 
thereby strengthening their capability to attract 
capital from investors looking to lower the emissions 
exposure of their portfolios. Leverage excess profits from energy market volatilities to bridge the clean energy 
investment gap
6
Fiscal measures and investmentsC
Securing the Energy Transition
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Provide reliable signals to investors in energy supply and infrastructure, 
considering revised outlook of energy mix
8
The short-term outlook for LNG demand is positive, 
given the increased demand in Europe to compensate 
for Russian gas from pipelines and the role played by 
gas as an industrial input and source of peak power 
generation in many countries. Clear guidance from 
policy-makers around the outlook for gas demand, 
flanked by an accelerated deployment of low-carbon 
sources, can provide certainty to investors and align 
new capacity with demand projections. To make LNG infrastructure compatible with the 
energy transition, emissions reduction measures 
should be integrated early on, for example through 
carbon capture and storage (CCS) and reliable 
carbon offsets. In addition, LNG infrastructure 
should be designed and built in a way that is 
compatible with future repurposing to produce blue 
hydrogen and ammonia. Craft crisis-induced fiscal measures to target vulnerable consumers, without in-
terfering in market signals
7
During the energy crisis, governments enacted fiscal 
measures to shield consumers and businesses from 
the direct impact of rising energy prices. In Europe, 
the aggregate cost of such measures is expected 
to be approximately $600 billion in 2022.21 Fiscal 
actions such as tax reductions or price caps are 
necessary to alleviate affordability constraints and 
protect energy-intensive industries from insolvency. However, these measures to support consumers 
should not impede market signals.


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Price caps, 
where necessary, can be kept to a level that still 
allows energy companies to invest in incremental 
supply increases and incentivize consumers 
to consume prudently. Similarly, subsidy 
programmes should be targeted at the most 
vulnerable consumers, for example, through lump-
sum cash payments (rather than consumption-
based support) and energy-saving incentives. Such measures will elicit the necessary demand 
correction while also ensuring energy equity  
and justice.


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Unilateral actions by countries to address short-
term security challenges risk creating inefficiencies 
in resource allocation.


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Co-ordination among 
countries would bring numerous benefits. For 
example, new LNG import facilities planned 
by countries in the EU could supply a quarter 
more gas to the EU than before.22 Co-ordinating 
such infrastructure investments could prevent 
overcapacity, reduce the risk of stranded assets 
and limit locking-in emissions. Similarly, where permitted in regional markets, joint 
efforts to procure LNG and develop gas storage 
infrastructure can be more cost-effective than 
unilateral measures. Meanwhile, co-ordination of 
fiscal measures can minimize the risk of regional 
and global energy market distortions. Co-ordinate with regional peers to maximize efficiency and minimize cost of 
energy crisis mitigation
Revisit energy security strategies considering shifting technology and fuel landscape
9
10
The cascading effects created by the current energy 
crisis will have lasting impacts on countries’ energy 
security strategies, their future energy mixes and 
ultimately their energy transition trajectories. While 
near-term pressures require a supportive response, 
this crisis also provides an opportunity for countries 
to comprehensively redesign their energy security 
approaches, considering the shifting of technologies 
and the fuel landscape within the energy mix, as well 
as emerging geopolitical balances. Co-ordination and long-term strategyD
Securing the Energy Transition
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Sustainability Equity Security
Sub-Saharan Africa
Commonwealth of Independent States
Latin America and the Caribbean
Middle East and North Africa
Emerging and developing Europe
Emerging and developing Asia
Advanced economies
Regions / Energy system performance dimensions
A Supply reinforcements Sustainability Equity Security
Prioritize augmenting supply from renewable energy, keeping fossil fuel 
reinforcements constrained to committed emission reduction targets1
Advocate for a diversiﬁed energy and trade matrix2
B Demand management
Maximize electriﬁcation and energy efﬁciency to alleviate and 
decarbonize energy demand4
Nudge social behaviour towards responsible energy consumption5
Address methane leakage from hydrocarbon supply chains3
C Fiscal measures and investments
Leverage excess proﬁts from energy market volatilities to bridge the 
clean energy investment gap6
Craft crisis-induced ﬁscal measures to target vulnerable 
consumers, without interfering in market signals7
D Co-ordination and long-term strategy
Co-ordinate with regional peers to maximize efﬁciency and 
minimize cost of energy crisis mitigation9
Revisit energy security strategies considering shifting technology 
and fuel landscape10
Provide reliable signals to investors in energy supply and 
infrastructure, considering revised outlook of energy mix8
Sustainability Equity Security
Sustainability Equity Security
Sustainability Equity Security
Regional average scores on energy triangle dimensions and summary of 10 actions to 
align energy crisis responses with energy transition
FIGURE 9
Source: World Economic Forum’s ETI 2022. Figure 9 showcases the relative impacts of the 10 actions against the three dimensions of the energy triangle 
(Sustainability, Equity, Security).


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Emerging energy 
security dimensions 
in a time of transition  
3
Energy systems in transition face opportunities 
and risks from changing energy markets 
as well as from decentralized, digitalized, 
decarbonized and distributed energy supplies. Securing this transition requires strategic 
evaluation and actions across six dimensions.


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Securing the 
energy transition
regional trustG lobal &
regulatory m
easures
M
arket &
Demand
management
Supply
security
System
security
stability
System
Energy security is typically understood in terms of 
supply security, reliability and resilience. But there 
are other dimensions that need to be addressed 
to secure the energy transition, considering the 
emerging energy security risks and opportunities 
from a decentralized, digitalized, decarbonized and 
distributed energy system under transition. To build resilience into an energy system in 
transition, a comprehensive and strategic evaluation 
of energy security is necessary. Unaddressed 
security risks not only have economic and social 
consequences but will also affect the pace and 
trajectory of the energy transition. This chapter proposes a framework of six dimensions 
to energy security in a time of transition (see Figure 10):
 – Supply security
 – Demand management 
 – Market and regulatory measures
 – Global and regional trust
 – System stability
 – System security 
These six dimensions should guide countries  
and policy-makers to plan strategic actions, 
policies and regulations. Across these dimensions, 
companies and consumers have their own roles  
to play.


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The chapter will  
examine each of these dimensions in turn. The six dimensions of the secure energy transition frameworkFIGURE 10
Securing the Energy Transition
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Energy Transition Index score (average, 2010-2022)
TES diversiﬁcation score (average, 2010-2022)
Potential challengesEmergingLeapfrogLeading
30 35 40 45 50 55 60 65 70 75 80 85 90
-10
10
20
0
30
40
50
60
70
80
90
100
110
New Zealand
Denmark
Norway
Finland
In addition to becoming more self-sufficient, 
countries looking to improve supply security should 
embrace a smart combination of energy trade and 
diversification to keep overall costs in check. The IEA’s net zero emissions (NZE) by 2050 
scenario calls for low-emission energy sources 
to grow by around 125 EJ by 2030, which is 
equivalent to the growth of world energy supply 
from all sources in the last 15 years. 23 Under 
this scenario, a diversified approach to domestic 
energy supplies will reduce dependence on fossil 
fuels in favour of alternative energy sources with 
lower emissions. Fossil fuels will continue to be 
a part of the energy mix in the medium term, but 
new approaches can be used to mitigate their 
impact on the transition. For example, additional 
gas capacity can be used to produce blue 
hydrogen and ammonia, while new infrastructure 
can be equipped early-on with carbon capture, 
utilization and storage (CCUS) technologies. Supply security3.1
Diversify supply by increasing domestic low-carbon energy mix
Diversify supply by increasing domestic low-carbon energy mix
Diversify imports to reduce trade exposure
Secure supply of critical minerals 
A
A
B
C
Increasing diversification of energy mix improves chances of successful transitionFIGURE 11
Note: TES stands for Total 
Energy Supply; analysis from 
World Economic Forum’s 
ETI 2022. Countries like Norway, New Zealand and 
Denmark score well in terms of their energy mixes.


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Respectively, they sourced ~72%, ~36% and 
~33% of their energy from renewables in 2021.24  
These countries also score among the top 10 for 
energy security (based on average scores from 
2010-2022), according to the Forum’s ETI. Finland 
(scoring top for energy security in 2022) has a 
highly diverse energy mix, with renewables holding 
a 48% share. It also demonstrates diversity across 
its renewable energy sources (e.g.


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nuclear, hydro, 
wind, solar, biofuels and other sources), which 
further reduces its risk of being dependent on any 
single clean energy source. Securing the Energy Transition
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A lack of diversity in energy imports means 
countries’ energy systems have less “cushion” 
to deal with supply disruptions, which could 
precipitate into national security concerns. Security 
around imports can be achieved by diversifying 
the network of fuel and electricity import partners. This dual diversification reduces exposure to 
concentrated supply shocks.


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Countries with over 
70% of their fuel imported from their top three trade 
partners are more exposed to supply disruptions 
than those with a more diversified import partner 
mix. China, Spain and Singapore, with less than 
35% of their fuel imported from their top three 
trade partners, are examples of less-exposed 
countries. Furthermore, China’s and Spain’s top 
import partners come from three different regions, 
which further reduces these countries’ exposure to 
concentrated regional supply disruptions. Increased dependence on top three partners for energy imports increases 
exposure to trade risk
FIGURE 12
Diversify imports to reduce trade exposureB
% Imports from top three trade partners
30% 65% 100%
Source: World Economic Forum’s ETI 2022. Importing countries with % fuel imported from top three trade partners
Securing the Energy Transition
24


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 – Fast-track and streamline planning, permitting and regulatory 
processes for critical minerals
 – Foster international co-ordination to expand and diversify 
manufacturing capacity of critical minerals and materials globally
 – Lead the innovation and commercialization of technologies and 
manufacturing processes that are less energy consuming and 
reliant on critical minerals
 – Develop circular products and circular supply networks to 
maximize the reuse and recycling of materials
Government/policy-makers
Industry leaders
Recommended actions Stakeholders
Secure supply of critical minerals  C
As the energy transition gains momentum, 
deployment of clean energy technologies in the 
IEA’s NZE by 2050 scenario will require four times 
the volume of critical minerals in 2030, compared 
to current demand. Concerns about price volatility, 
resource availability and security of supplies are driven 
largely by the regional concentrations of minerals.


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For example, Chile holds 44% of global lithium 
reserves,25 the Democratic Republic of Congo holds 
50% of global cobalt reserves and China holds 38% 
of rare earth minerals. This concentration combined 
with long lead times to expand supply makes supply 
security of critical minerals to power the energy 
transition an important dimension to consider. A comprehensive critical minerals strategy should 
incorporate recycling, reuse of electric vehicle 
batteries and end-user energy efficiency measures. Enhanced research and development efforts 
can help further reduce mineral intensity and 
enable mineral substitution in key applications.


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Additionally, funding of new mineral exploration 
and mapping can strengthen domestic supply 
chains. This is the goal of the US’s Bipartisan 
Infrastructure Law, which aims to invest $74.6 
million in scientific research, data mapping 
and preservation of critical minerals. 26 For 
recommended actions to secure supply chains for 
critical minerals, see Box 1. Deployment of clean energy technologies will require four times the 
volume of critical minerals in 2030, compared to current demand
Key recommendations to secure supply chains for critical minerals BOX 1
Securing the Energy Transition
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Reducing energy demand is synonymous with 
reducing energy dependency and reducing 
emissions. Demand management is crucial and 
needs to be formalized as a long-term proactive 
strategy, rather than a short-term reactive measure. Energy efficiency, materials efficiency and behavioural 
change can yield energy savings of around 110 EJ 
by 2030. This is equivalent to the total final energy 
consumption of China today.27 These areas of focus 
can also provide 80% of the emissions reductions 
required in the buildings sector by 2030. This dimension of energy security comprises three 
elements, detailed below:
Efficiency measures can work with emergency 
conservation measures and active participation of 
end consumers in demand management to reduce 
demand during disruptions. This was evident during 
the supply shortfalls experienced by Japan from 
2011-2014, following the tsunami that damaged 
the Fukushima nuclear power plant, when demand 
curtailment from industry and households helped 
reduce electricity consumption by 26%.29
Long-term efficiency measures include large-
scale retrofit programmes, the adoption of high-
efficiency appliances and the integration of industrial 
processes to drive benefits such as waste-heat 
recovery and improving energy intensities. Analyses from the ETI show that lowering energy 
intensity, a measure of economic reliance on energy 
consumption, contributes positively to the energy 
transition (see Figure 13).


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Between 2000 and 2019, 
global efforts to lower energy intensity resulted in 8 
billion tonnes (gigatonnes or Gt) of avoided carbon 
dioxide emissions in 2019, offsetting almost half 
of the emissions growth that could otherwise have 
happened.30 Since 2019, there has been less focus 
on reducing global energy intensities. Improvements 
of lower than 1% per year were observed in 2020 
and 2021 – well below the 4% per year required 
on average from 2020 to 2030 in the IEA’s NZE by 
2050 scenario.31
Looking ahead, investments in technology innovation 
will be needed to enable more efficient use of energy 
and materials, to allow substitution and to unlock new 
supplies.


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Targeted investments in energy efficiency 
and electrification, the share of which is expected to 
grow from 17% of final energy consumption today to 
52% in 2050,32 will be particularly important. Demand management3.2
Prioritize energy efficiency
Prioritize energy efficiency
Accelerate the materials transition
Scale up demand response28 and advocate for consumer behavioural change
A
A
B
C
Energy efficiency, materials efficiency and behavioural change can yield 
energy savings of around 110 EJ by 2030 – equivalent to the total final energy 
consumption of China today 
Securing the Energy Transition
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Scale up demand response and advocate for consumer behavioural changeC
Energy intensity versus Energy Transition Index score for G20 countries (excluding EU) FIGURE 13
Note: Analysis from World 
Economic Forum’s ETI 2022. Energy Transition Index score 2022
Energy intensity MJ/$2017 PPP GDP 2022
Potential challengesEmergingLeapfrogLeading
40 60 80
0
2
6
4
8
10
Canada
United States
France
United Kingdom
Brazil
Japan
Germany
Italy
Australia
ArgentinaIndonesia Mexico
Turkey
Republic of Korea
India
Saudi Arabia
South Africa
Russian Federation
China
Industries can evolve their current use of materials 
by seeking greater efficiencies, substituting 
emissions-intensive materials and enhancing 
circularity. This includes replacing conventional 
materials with substitutes that are superior in terms 
of performance, weight durability to extend a 
product’s life and optimize its energy consumption.


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For example, using carbon-fibre reinforced polymers 
(CFRPs) can reduce the weight of large rotor blades 
for wind turbines by 30%,33  which leads to more 
efficient energy generation. In automobiles, next 
generation carbon-fibre composites can reduce 
the weight of a passenger car by 50%, resulting 
in a ~35%34 improvement in fuel efficiency. By 
enhancing energy efficiency throughout product 
lifecycles and substituting emissions-intensive 
materials, the materials transition contributes to a 
stronger energy supply. Demand-response mechanisms are either price-
based (to encourage consumers to reduce demand at 
peak hours) or incentive-based (with direct payments 
to consumers who modify their consumption). Such 
measures help balance electricity supply and demand 
and lessen the risk of power outages and damage to 
devices connected to the grid.


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Flexibility in the emerging power system is 
increasingly reliant on demand response 
mechanisms. Approximately 25% flexibility is 
expected from demand response by 2050,35 to 
replace the 20-30% flexibility offered by unabated 
fossil fuels in 2021. The current energy crisis 
represents an opportunity to accelerate policy 
frameworks that reward end-users, demand 
aggregators, industrial consumers and other 
potential providers of demand-side response with 
greater flexibility in electricity, capacity and ancillary 
service markets. Innovative business models 
for demand aggregation, communication and 
education programmes, coupled with distributed 
power sources and connected end-use devices 
will be important to drive consumer and community 
participation in demand-response schemes. Changing consumer behaviour is critical to curtail 
energy demand and carbon emissions. Behavioural 
changes, such as adjusting thermostats, could 
reduce energy demand by 8 EJ and CO2 emissions 
by 1.15 Gt across transport, building and industry 
sectors in 2030 – amounting to 9% of total required 
emissions reductions.36 
Changing behaviour begins with increasing 
consumers’ awareness of the impacts of climate 
change, carbon footprints and the individual actions 
that can be taken to support national energy 
security and sustainability ambitions (see Figure 14). Accelerate the materials transitionB
Securing the Energy Transition
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Reduce excessive/wasteful energy use
Adjust thermostat settings, adopt energy-saving practices in homes, take shorter showers, limit driving 
speeds on motorways to 100 kilometres per hour etc. Switch transport mode
Shift to cycling, walking or ridesharing; take buses for trips in cities that would otherwise be made by 
car; replace regional air travel by high/uni2010speed rail in regions where feasible etc. Engage & act as a “prosumer”
Install a solar water heater and home solar panels, switch to electric cooking and heating, buy an EV 
instead of a combustion engine car, ﬂy less etc.


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Increase digitalization
Use smart appliances such as smart thermostats, space/uni2010differentiated thermal controls etc. Note: Prosumers are consumers who produce part or all of their energy through locally installed (often renewable) assets. Reduce excessive/wasteful energy use
Increase digitalization
Actions 
consumers can 
take to reduce 
energy demand
Switch transport 
mode
Engage & act as a
“prosumer”
ºC
ºC
Actions consumers can take to reduce energy demandFIGURE 14
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This dimension of energy security comprises three elements, detailed below:
New investments needed to keep the energy 
transition on track could exceed $4 trillion 
per year by 2030, 37 nearly a four-fold increase 
from the average annual investments in clean 
energy over the past five years. Channelling new 
energy investments to low-emissions sources 
and technologies is essential.


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However, current 
investments indicate the continued development 
of unabated coal power plants. With a typical 
coal power plant lifetime of 30-50 years, this 
represents a risk of stranded assets to the tune of 
$1.4 trillion on a 1.5-degree pathway. 38
Countries are currently re-wiring their energy 
systems to accommodate shifting trade flows 
driven by recent geopolitical events.


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For example, 
Europe is investing at least $15-20 billion 39 
(and likely more) to develop new pipelines, 
regasification terminals and other infrastructure 
upgrades as a consequence of the war in Ukraine. The scale of this investment underscores the 
exposure to stranded asset risks – and the 
need for natural gas and LNG infrastructure to 
be designed with emerging low-carbon energy 
applications in mind. Investments to replace the energy supply 
disruptions using fallback fuels such as natural 
gas and coal play an important role. Yet investing 
in these fuels can be tricky during a crisis, since 
countries are already spending more to secure 
energy imports as well as offering consumers 
subsidies to maintain affordability. Furthermore, 
short-term needs for natural gas infrastructure 
and coal capacities should not lead to over-
investment in assets designed to operate for  
30-40 years, since this can lead to emissions 
lock-in as well as increase the risk of stranded 
assets, as policy measures to mitigate emissions 
become increasingly stringent (see Figure 15). Market and regulatory measures3.3
Rationalize capital funding and allocation
Rationalize capital funding and allocation
Adapt to re-designed energy market structures 
Manage policy mechanisms
A
A
B
C
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Global coal power capacity (GW), (status: announced, pre-permit, under construction)FIGURE 15
Capacity (GW)
0 150 300
Note: Global coal capacities total approximately 476 GW from 941 coal plant units40 (status: announced, pre-permit, permit, under 
construction). Increasingly competitive renewables will cause much of the coal capacity planned for development to be underutilized 
and potentially stranded.


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Source: Global Energy Monitor’s Global Coal Plant Tracker, July 2022. Flexible, short-cycle investments in  
abating hydrocarbons (e.g. methane  
abatement, flaring reductions), combined  
with a step-change towards clean, renewable 
power investments is a pathway that can  
secure the transition tomorrow while  
strengthening the system today. For a  
summary of key considerations  
for rationalizing capital funding and allocation  
for a secure energy transition, see Figure 16. Global coal power capacity (GW)
Securing the Energy Transition
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Key considerations for rationalizing capital funding and allocation for a secure energy transition41 FIGURE 16
 – Consider low-cost and long-term financing to fund the required investments and retrofits (ensure 
stewardship of capital and reduce stranded asset risks)
 – Repurpose existing infrastructure to support the low-carbon supply chain and create a new revenue 
stream for existing assets
 – Rationalize investments to minimize the wasted capital from unplanned and pre-mature stranded assets
 – Aggregate energy projects into portfolios that can be securitized, giving investors the opportunity to 
finance small-scale assets, while spreading risks and lowering financing costs
 – Address the risks of cashflow uncertainty and financing costs stemming from new business models 
(with policy changes and emerging technologies)
 – Ensure co-ordination among investors, companies and governments
 – Use good data and analysis to support decision-making for scaling investible opportunities aligned with 
long-term goals
 – Accelerate the deployment of solutions such as wind, solar, hydrogen, biofuels and CCUS, as well as 
solutions that improve energy efficiency and circularity
 – Investments in energy efficiency solutions need to grow by 94% over the next eight years 
 – Investments in low-carbon fuels and CCUS will need to grow by more than 850% over the same period
 – Develop more full-scale demonstration projects to accelerate the commercial readiness of low-emission 
technologies and drive costs down
 – Targeted investments can spur adoption and scale the benefits of abated fossil fuel and renewable 
technologies
 – Hydrogen, sustainable fuels and carbon capture offer potential to reduce dependence on solar and 
wind alone, while supplying clean power for energy uses that cannot be electrified 
 – By 2035, the global biofuels market is set to at least double; 64% of 80 sector-specific decarbonization 
solutions are expected to be economically attractive; and the market for combined CCUS and hydrogen 
solutions is expected to be worth $220 to $780 billion
Tackle stranded assets and repurpose infrastructure
Allocate capital to align with long-term goals
Accelerate commercialization of clean technologies and solutions
Opt for targeted investments in the renewables value chain
Source: @/Gettyimages
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Redesigning energy market structures can hedge 
the system against extreme price volatilities and in 
a manner that reduces dependence on a single fuel 
type as the sole driver of energy prices. Natural gas 
alone accounts for more than 50%42 of electricity 
price increases, despite contributing only 23% of 
global electricity generation in 2021. This is because the average cost of production 
for the electricity mix in a country can often be 
considerably lower than the price of the marginal 
capacity needed in tight market situations.


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Consequently, electricity prices for the marginal 
supply are generally higher for consumers. A potential market reform is to split the wholesale 
market into a clean power market (CPM) for 
renewables and a fossil power market (FPM) for 
conventional generation.43 The CPM is remunerated 
via long-term contracts or spot-markets44 with a 
price cap, while the FPM competes in a short-term 
spot market to meet the residual demand. The price 
paid by energy purchasers in these markets would 
be a weighted average of the CPM clearing price 
and the FPM clearing price. Markets re-designed 
in this way could allow consumers to access the 
cost savings of renewables while still allowing clean 
technologies to compete with fossil fuels in the 
production of electricity on the spot market. Adapt to re-designed energy market structuresB
Manage policy mechanisms C
There are many ways governments can influence 
energy demand. These include subsidies, tax 
benefits or waivers, capital grants, energy-
efficiency mandates and more.


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Such policy 
mechanisms can serve many purposes – from 
fostering implementation of green solutions to 
de-risking markets to unlock private financing. An 
example would be policies driving excess oil and 
gas profits towards investment in renewables and 
production of low-emissions hydrogen. Carbon pricing is one of the strongest policy 
instruments available to help incentivize the scaling-
up of low-emission production technology. However, 
much remains to be done. Globally, emissions trading 
schemes (ETSs) and carbon taxes cover only 30% of 
emissions, with prices rising as high as $90 per tonne 
(in the EU).45 Carbon pricing has the potential to 
change the behaviour of consumers, businesses and 
investors, while unleashing technological innovation 
and generating revenues that can be invested in a 
cleaner energy mix favouring supply security and 
sustainability imperatives. Carbon pricing is one of the strongest policy instruments available to incentivize 
the scaling-up of low-emissions energy – but globally, carbon pricing covers only 
30% of emissions
Source: @/Gettyimages
Securing the Energy Transition 32


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This dimension of energy security comprises two elements, detailed below:
Improved trust and co-ordination not just across 
regions and countries but within countries and 
sectors and among stakeholders is the need of 
the hour. Collaboration between public and private 
sectors, including risk-sharing as low-carbon 
solutions mature, will attract the diversified sources of 
capital needed for multi-year investments in energy 
systems. Collaboration will be especially important 
over the next five to 10 years to develop large 
infrastructure projects and to scale-up technologies 
in the demonstration or prototype phases today, 
such as clean hydrogen and CCUS applications. Multilateral public-private partnerships to finance low-
emissions projects would help channel the necessary 
capital into the first commercial-scale assets. Trust between countries is an essential driver 
of accelerated energy transition. Given regional 
distributions in technology development, 
manufacturing of renewable energy components 
and availability of critical materials, global trade flows 
will increasingly influence the ability of countries 
to support mutual energy transition. Protectionist 
policies that restrict trade in low-carbon materials 
and technologies risk eliciting similar responses from 
other countries.


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Additionally, trust in institutions is a critical factor 
in implementing successful demand-management 
programmes, which require broader societal 
acceptance and participation.


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Lessons from 
COVID-19 pandemic management demonstrate 
that social behaviour adaptation is possible in the 
short-term, given a high degree of transparency, 
adherence to scientific evidence and consistent 
information-sharing. The impacts of a grid interconnection on 
energy security can be quite complex.


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Any 
given interconnection project, evaluated from 
a particular national point of view, will require 
trade-offs between different dimensions of energy 
security. For example, an interconnected grid 
might improve energy supplies, but it comes with 
greater import dependence and potential national 
security implications. It may yield cost savings by 
enabling the substitution of electricity for other 
fuels and increase incentives for investors to 
finance new energy capacity. However, it may also 
increase exposure to energy price volatility from 
international markets. On the positive side, reinforced power grids and 
additional interconnections can help even-out 
fluctuations in the supply of weather-dependent 
renewables, within and between countries and 
regions. They can also connect additional providers 
to the system. Certain shared grid assets, such as 
high voltage direct current interconnections, can 
provide highly flexible services such as fast ramping 
or voltage control directly. Countries can create new cross-border super 
grids to increase trade in low-carbon power, 
reduce emissions, improve energy security and 
enhance system flexibility, while creating more 
opportunities for energy imports diversification. By 
tying comparable neighbouring economies through 
the sharing of very valuable power interconnections, 
energy security is improved through diversification 
and by building cross-border trusted mechanisms 
that foster bilateral co-operation – much needed in 
the current uncertain geopolitical environment. Global and regional trust3.4
Strengthen collaboration for energy security 
Strengthen collaboration for energy security
Build trusted interconnections 
Build trusted interconnections 
A
A
B
B
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Electricity customers have high expectations for 
electricity reliability from their utility providers. Virtually every sector of the economy depends on 
electricity – from food production to banking, health 
care and transportation. This places a high premium 
on reliability.


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Traditional threats to reliability include the loss of 
generation, loss of transmission or loss of consumer 
demand. Operational reliability is the ability of the 
power system to balance supply and demand in 
real time by managing variability and flexible loads – 
including immediately following an event like a large 
failure in a power plant or transmission line. As more 
and more variable renewable generation sources 
are added to the grid, a stronger focus on grid 
stability and reliability is critical.


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This necessitates 
market structures that appropriately price and 
incentivize both supply- and demand-related 
reliability services. A reliable system can reduce 
or shift energy demand to meet supply, provide 
information about electricity production and use, 
and access or store renewable energy for use when 
it is needed. Grid resilience is crucial as energy systems transition 
towards more variable and distributed generation. Diversifying into alternatives like wind and solar can 
enhance resilience. Small-scale generators, such as 
distributed wind and solar PV, have the potential to 
facilitate recovery from large-scale blackouts, while 
large thermal power plants take longer to resume 
normal operations, since they need a large part of the 
system to be restored. A rapid scale-up of energy storage is critical to 
meet the need for flexibility in a decarbonized and 
distributed electricity system.


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Energy storage solves 
clean energy sources’ intermittency problem, 
ultimately making them as reliable and consistent as 
fossil fuels. The IEA’s NZE by 2050 scenario calls for 
a 44-fold expansion of installed grid-scale battery 
storage between 2021 and 2030 (from 6 GW in 2021 
to 680 GW in 2030). Storage is used to integrate renewables, support 
smart grids, create more dynamic electricity markets, 
provide ancillary services, and improve self-sufficiency 
and stability. Among other storage technologies, 
pumped hydro47 is the largest source of electricity 
storage today and is set to increase further over the 
next ten years.48 In addition, using excess renewable 
energy capacity (e.g. during times of high wind 
or sunshine) to produce hydrogen is emerging as 
a solution to store seasonal peaks of renewable 
electricity, while mitigating renewables’ intermittency 
of supply.


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Finally, investing in energy storage should 
not be limited to storage of power, but include 
enhancement of storage for fuel products. System stability3.5
A
The share of electricity in the total final energy 
consumption is bound to increase globally, from 20% 
today to 28% by 2030 and 52% by 2050 in the IEA’s 
NZE scenario. System stability takes centre stage in 
electricity security, to allow systems to withstand and 
respond to disturbances such as generator or grid 
outages from load changes or extreme weather events. With more renewables being added to the grid, 
maintaining stability requires operators to address 
the variability of renewable energy supply, the role of 
storage, changes in demand patterns and the impact 
of transmission outages (which may require a co-
ordinated inter-regional response). Weather-proofing 
the energy infrastructure is also part of a strategy to 
increase the stability and resilience of the system. This dimension of energy security comprises three 
elements, detailed below:
Build a reliable system with adequate dispatchable generation,46 demand response and 
network capacity 
Build a reliable system with adequate dispatchable generation, demand response and  
network capacity 
Integrate system resilience to survive and quickly recover from extreme  
and unexpected disruptions
Integrate system resilience to survive and quickly recover from extreme and  
unexpected disruptions
Programme grid expansion and modernization
A
B
B
C
The IEA’s net zero scenario calls for a 44-fold expansion of installed grid-scale battery 
storage from 6 GW in 2021 to 680 GW in 2030
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 – Reimagine operations, circular supply chains and workforce 
management to build resilience against supply disruptions and 
climate-related events
 – Strengthen the energy grid through integrated energy solutions that 
include digitalization, decarbonization and diversification
 – Invest in comprehensive stakeholder engagement programmes to 
support local communities, first responders and other stakeholders 
in the face of difficult energy supply conditions
Industry leaders
Projects to expand grid infrastructure and enhance 
grid flexibility need to proceed in step with variable 
renewable capacity additions to avoid grid 
congestion and ensure the success of clean energy 
transitions. Grid modernization is emerging as a key 
priority for policy-makers looking to address both 
energy security and energy transition.


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This is already 
evident in the United States,49 where $1 trillion has 
been set aside to revamp the nation’s infrastructure. Notably, grid upgrades are prone to cost pressures 
and tight markets for critical minerals. Recent price 
spikes in critical minerals have pushed up the cost 
of new grid investments by 10%50 compared to the 
period 2010-2020. Smart grids are critical elements of any 
modernization strategy.


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They use sensors, 
monitoring devices and automation to improve 
performance and uptime, and also give utilities 
control over fluctuating voltage levels, thereby 
improving overall stability and resilience. Global 
investments in digital technologies account for 
more than 15%51 of total investment in electricity 
grids, a significant fiscal consideration to be 
addressed in modernization plans. Some key recommendations to bolster energy 
system stability are proposed in Box 2. Programme grid expansion and modernizationC
 – Promote and provide incentives for technologies that enhance 
system stability, such as smart grids, distributed and dispatchable 
energy generation, demand response, energy efficiency, distribution 
system planning and energy storage capacity
 – Create and share strategic grid modernization plans with industry 
leaders for effective grid architecture planning
 – Share draft policies that affect the power sector with appropriate 
parties for their consultation
 – Ensure transmission and distribution planning processes are better 
integrated with generation planning, for example through planning 
processes co-ordinated by system operators
Government/policy-makers
Recommended actions Stakeholders
Key recommendations to bolster energy system stabilityBOX 2
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A strategic approach to risk management 
enables more informed decision-making around 
technology, policies and operating models. Near-term and long-term risk management is 
increasingly critical to the ongoing stability of the 
electricity system. A decentralized energy system with effective 
risk management plans can bolster a country’s 
preparedness for disasters and ensure energy 
security during any crisis. Effective risk management 
enables an examination of system vulnerabilities 
and targeted mitigation and contingency plans.


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Monitoring tools and data analytics can provide a 
holistic, proactive view of threats across the industry 
and region, including technical vulnerabilities and 
the various factors (e.g. geopolitical, economic, 
legal) that shape the threat environment.


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Partnerships, information-exchange programmes 
and research initiatives across the electricity sector 
and beyond can facilitate the development of robust 
energy system risk management capabilities and 
strategies. As a result of the energy security crisis in 
2022, numerous governments have had to redraw 
their contingency plans to prepare for different 
supply disruption scenarios. In the future, such 
preparedness ought to be the norm, conducted 
well in advance of and reflecting different supply 
security threats. Energy security requires adequate protection of 
critical infrastructure against physical threats and 
cyberattacks. Increasing digitalization makes the 
energy system smarter. However, it also increases 
exposure to cyberattacks, which can compromise 
energy supply and consumer data privacy. Cybersecurity is among the top 10 risks52  that have 
escalated the most since the start of the COVID-19 
crisis. Over the past 18 months, industries have 
undergone rapid digitalization platforms and devices 
facilitating this have proliferated. At the same 
time, cybersecurity threats are growing – in 2020, 
malware and ransomware attacks increased by 
358% and 435% respectively – and are outpacing 
societies’ ability to effectively prevent or respond 
to them. The current state of international risk 
mitigation efforts in managing cross-border 
cyberattacks and misinformation is worrying, 
according to the World Economic Forum’s  
Global Risks Report 2022. Just 2% of such 
efforts are considered effective and only 23% are 
established.


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This means that three-quarters of all 
the cyber risk mitigation efforts that are required are 
either in early development or have not yet started. Physical infrastructure security is essential for 
maintaining the integrity of sensitive locations, 
such as data centres, and transmission and 
distribution sites – these systems are also critical 
in responding to a cyberattack. Although there 
is a growing cybersecurity threat, most incidents 
are never reported.


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Some attacks may even go 
undetected. Policy-makers must raise awareness 
of the issues and work with stakeholders to 
identify, manage and communicate emerging 
vulnerabilities and risks. 53  
Some key recommendations to fortify system 
security are proposed in Box 3. System security3.6
A
The energy sector provides the enabling 
infrastructure for all other sectors. The impact 
from its disruption is felt across the entire 
economy and wider society. As a uniquely critical 
sector, energy must pay special attention to 
physical and cyber security. This dimension of energy security comprises two 
elements, detailed below:
Develop risk management capabilities 
Develop risk management capabilities 
Strengthen cyber security and physical security of energy infrastructure
Strengthen cyber security and physical security of energy infrastructure
A
B
B
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 – Develop emergency response strategies and improve response 
capabilities (e.g. robust response and recovery procedures)
 – Improve mandatory reporting requirements for cyber incidents
 – Develop response strategies to cyber intrusions in collaboration 
with the electric power industry, federal agencies, and state and 
local governments
 – Establish state-level task forces dedicated to study incidents and 
provide recommendations to policy-makers
 – Ensure new systems are designed for cyber resilience and 
upgrade existing systems to be in line with state-of-the-art cyber 
protection
 – Learn from historical incidents and via information-sharing and 
analysis centres (ISACs) or knowledge-sharing platforms
Government/policy-makers
Industry leaders
Recommended actions Stakeholders
Key recommendations to fortify system securityBOX 3
Below: @hxdyl/
Gettyimages
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Energy security is firmly back on the agendas of 
countries, companies and consumers. Improving it 
requires focusing on six key dimensions:
1.


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System stability
6. System security 
Meanwhile, to sustain energy security requires 
making it a cornerstone of the energy transition. Emerging energy security risks raise the question 
of whether all the risks from a decentralized, 
digitalized, decarbonized and distributed energy 
system under transition are addressable (or 
even known). Is achieving energy security really 
feasible? We believe the answer is yes. The 
framework proposed in this paper provides a 
roadmap for mitigating threats and creating a 
highly secure and sustainable energy system. The priority actions that accompany the six 
dimensions of our proposed framework provide 
opportunities for countries to re-think their current 
strategies, perform assessments, quantify energy 
security performance and ask the right questions 
(see Figure 17). This will enable them to gain a 
better understanding of the energy security risks 
facing them and to formulate plans to mitigate 
those risks as part of their overall energy transition. While a decarbonized future energy system can 
provide energy security dividends from abundant 
and localized low-carbon energy sources, 
ensuring energy security and affordability through 
the transition will require fossil fuels in the 
medium-term. There will have to be a gradual 
phasing down of hydrocarbon energy sources 
and an accelerated phasing up of cleaner 
energy sources to deliver on climate targets, 
both by adjusting demand and by improving the 
economics of supply. Countries will need a range of cleaner technologies 
such as hydrogen, sustainable fuels, carbon 
capture and others. Most of them have existed for 
decades but will need greater and more targeted 
investment. To ensure a just transition, greater 
investment will also be needed in skills training, 
research and innovation, and incentives to build 
sustainable supply chains that protect ecosystems 
and cultures. Governments are in the driving seat when it 
comes to ensuring a country’s energy security, but 
companies and private consumers play important 
roles as well. Multi-stakeholder collaboration and 
co-ordination are the need of the hour to ramp up 
clean energy investments, decarbonize industries 
and meet consumer demands. Open dialogue 
and policy co-ordination among stakeholders and 
governments can play a vital role in making energy 
security a reality. The proposed six dimensions of our framework 
are not intended to be addressed in isolation. Finding the right balance between energy security 
and energy transition means looking for ways to 
progress on all six dimensions simultaneously. Conclusion
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Securing the 
energy transition
regional trustG lobal &
regulatory m
easures
M
arket &
Demand
management
Supply
security
System
security
stability
System
System stability
- Accelerate stability enhancements to strengthen 
the reliability and resilience of the system 
- Invest in transmission and distribution networks to 
accommodate tomorrow's power systems
Global & regional trust
- Collaborate to reduce risks and cost of capital for 
transition, and leverage international centres of 
expertise in ﬁnance and technology 
- Build trusted interconnections to increase trade in 
low-carbon power, to lower emissions and to 
enhance system ﬂexibility
Market & regulatory measures
- Opt for strategic and targeted clean energy 
investments while managing the retirement and 
reuse of existing infrastructure
- Restructure markets and adopt regulatory 
platforms to address market failures and 
introduce targeted policies
System security
- Develop capabilities and prioritize risk manage-
ment across traditional (physical) and emerging 
priority areas (cybersecurity) of energy security 
risks from increasing digitalization and connectivity
Supply security
- Unlock increases in domestic clean energy mix
- Secure critical minerals supply chains to reduce 
import dependence
- Diversify trader networks 
Demand management
- Drive effective demand management by prioritizing 
energy efﬁciency and materials transition 
- Stimulate behavioural change measures and 
demand responses using effective policy, tools 
and communication
The six dimensions of the secure energy transition framework – priority actionsFIGURE 17
Securing the Energy Transition
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Acknowledgements
Contributors 
The World Economic Forum acknowledges and 
thanks the following experts, without whose 
guidance this report would not have been possible. However, the report does not necessarily reflect the 
views of these companies and individuals.


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Expert 
advice is purely consultative in nature and does 
not imply any association with the takeaways or 
conclusions presented within this report. Harmeet Bawa
Group Senior Vice President, Global Head of 
Government and Institutional Relations, Hitachi Energy
Jason Bordoff
Founding Director, Center on Global Energy Policy, 
Columbia University SIPA
Michela Cappanelli
Head of Climate Strategy, Risk Mitigation and 
Disclosure, Eni
Lucy Craig
Director of Growth, Innovation and Digitalization, DNV
Rabia Ferroukhi
Director, Knowledge, Policy and Finance Centre, 
IRENA
Thomas Leurent
CEO, Akselos
Jon Cortazar Lezzamiz 
Global Head of Public Affairs, Siemens Gamesa
Bertrand Magné
Senior Economist and Energy Specialist, European 
Investment Bank
Valerie Marcel
Associate Fellow, Head of New Producers Group, 
Chatham House
Mikaela McQuade
Chief of Staff and Strategic Advisor to Jason 
Bordoff, Center on Global Energy Policy, Columbia 
University SIPA
Davide Puglielli
Head of Scenario Planning and Group Strategic 
Positioning, Enel
John Scott
Head, Sustainability Risk, Zurich Insurance Group
Tatsuya Terazawa
Chairman and CEO, Institute of Energy Economics, 
Japan
Fridtjof Unander
Chief Economist, Aker Horizons
Thiago Vasconcellos Barral Ferreira 
Presidente, Empresa de Pesquisa Energética (EPE), 
Brazil
David G. Victor
Professor, Innovation and Public Policy, School of 
Global Policy and Strategy, UC San Diego
Rigoberto Ariel Yepez-Garcia
Manager, Infrastructure and Energy Department, 
The Inter-American Development Bank
World Economic Forum
Roberto Bocca
Head of Shaping the Future of Energy, Materials 
and Infrastructure
Espen Mehlum
Head of Energy, Materials and Infrastructure 
Programme, Energy Transition Intelligence and 
Regional Action
Harsh Vijay Singh (co-lead author)
Manager, Energy Transition Intelligence Programme, 
Energy, Materials and Infrastructure Platform
Lucia Fuselli
Program Analyst, Energy, Materials and 
Infrastructure Platform
Mohammed Algeer
Project Fellow, Energy, Materials and Infrastructure 
Platform
Accenture
Muqsit Ashraf
Global Lead, Accenture Strategy
David Rabley
Managing Director and Global Energy Transition 
Lead, Energy
Marine Bodin
Senior Manager, Strategy and Consulting, Energy
Monika Kashyap (co-lead author)
Manager, Strategy and Consulting, Energy
Francesca Tate
Manager, Strategy and Consulting, Energy
Editing and design  
Jonathan Walter
Editor
Albert Badia Costa
Designer
Securing the Energy Transition
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ANNEX I
To calculate the Energy Transition Index (ETI), a total 
of 39 indicators are used highlighting the aspects 
of system performance and transition readiness. Performance dimensions are calculated against 
economic development, environmental sustainability 
and energy security.


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Readiness dimensions are 
calculated against political regulations, infrastructure, 
innovation, human capital and financial investments. Available public data for 115 countries is used and 
a reasonable weighting is allocated to each of the 
indicators – this is further aggregated to give a 
country score and ranking. For more information, see: 
The Energy Transition Index Methodology and 
Technical Notes
Energy Transition Index (ETI) 
framework and methodology
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Endnotes
1. International Energy Agency, Global CO2 emissions rebounded to their highest level in history in 2021, https://www.iea.org/
news/global-co2-emissions-rebounded-to-their-highest-level-in-history-in-2021, 8 March 2022. 2.


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International Energy Agency, Energy security: Reliable, affordable access to all fuels and energy sources, https://www.iea.org/
topics/energy-security, 2022. 3. Neufeld, Dorothy, The Inflation Factor: How Rising Food and Energy Prices Impact the Economy, https://elements. visualcapitalist.com/how-rising-food-energy-prices-impact-economy/, 1 September 2022. 4. Neufeld, Dorothy, The Inflation Factor: How Rising Food and Energy Prices Impact the Economy, https://elements. visualcapitalist.com/how-rising-food-energy-prices-impact-economy/, 1 September 2022. 5.


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International Energy Agency, Net Zero by 2050: A Roadmap for the Global Energy Sector, May 2021. 6. Our World in Data, Global primary energy consumption by source, https://ourworldindata.org/grapher/global-energy-
consumption-source, 2022. 7. International Energy Agency, Energy Efficiency, https://www.iea.org/reports/energy-efficiency, September 2022. 8. International Energy Agency, World Energy Investment, https://www.iea.org/reports/world-energy-investment-2022, June 2022. 9. International Energy Agency, World Energy Investment, https://www.iea.org/reports/world-energy-investment-2022, June 2022. 10. International Monetary Fund: World Economic Outlook Update:: Rising caseloads, a disrupted recovery, and higher inflation, 
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million-to-30-states-for-critical-minerals-research-mapping, 22 June 2022. 27.


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October 2022. 28. Demand response provides an opportunity for consumers to play a significant role in the operation of the electric grid by 
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29. Motherway, Brian et al., Accelerating energy efficiency: What governments can do now to deliver energy savings, International 
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October 2022. 33. Almulla, Musaab, Samah El-Shahat, Nan Zhou, What is ‘materials transition’ and why is it critical for a net-zero future?, World 
Economic Forum, https://www.weforum.org/agenda/2022/06/materials-industries-net-zero/, 14 June 2022. 34. Almulla, Musaab, Samah El-Shahat, Nan Zhou, What is ‘materials transition’ and why is it critical for a net-zero future?, World 
Economic Forum, https://www.weforum.org/agenda/2022/06/materials-industries-net-zero/, 14 June 2022. 35.


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outlook-2022, October 2022. 37. Ashraf, Muqsit, Jack Azagury, Aleek Datta, Diana Alcala, Lasse Kari, A balanced Energy Transition: sustainability & security, 
Accenture, https://www.accenture.com/pl-en/insightsnew/energy/balancing-sustainability-security, 27 September 2022. 38. Edwards, Morgan et al., Quantifying the regional stranded asset risks from new coal plants under 1.5°C, Environmental 
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Accenture, https://www.accenture.com/pl-en/insightsnew/energy/balancing-sustainability-security, 27 September 2022. 40.


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Accenture, https://www.accenture.com/pl-en/insightsnew/energy/balancing-sustainability-security, 27 September 2022. 42. International Energy Agency, World Energy Outlook 2022, https://www.iea.org/reports/world-energy-outlook-2022, October 2022. 43.


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assessment-europes-options-addressing-crisis-energy-markets, 29 September 2022. 44. Energy spot markets are used to buy and sell physical quantities of power and gas in a short-term timeframe ahead of delivery, 
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energy-markets/, 2022.


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45. Black, Simon et al., More Countries Are Pricing Carbon, but Emissions Are Still Too Cheap, IMF Blog, https://www.imf.org/en/
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47. Pumped storage hydropower (PSH) is a type of hydroelectric energy storage. It is a configuration of two water reservoirs 
at different elevations that can generate power as water moves down from one to the other (discharge), passing through a 
turbine. The system also requires power as it pumps water back into the upper reservoir (recharge). PSH acts similarly to a 
giant battery, because it can store power and then release it when needed. Source: US Department of Energy, https://www.


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energy.gov/eere/water/pumped-storage-hydropower, 2022. 48. International Energy Agency, World Energy Outlook 2021, https://www.iea.org/reports/world-energy-outlook-2021, October 2021. 49.


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Morgan, David and Richard Cowan, After months of work, U.S. senators unveil $1 trillion infrastructure bill, Reuters, https://
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International Energy Agency, World Energy Investment 2022, https://www.iea.org/reports/world-energy-investment-2022, 
June 2022. 51. International Energy Agency, World Energy Investment 2022, https://www.iea.org/reports/world-energy-investment-2022, 
June 2022. 52. World Economic Forum, The Global Risks Report 2022, https://www3.weforum.org/docs/WEF_The_Global_Risks_
Report_2022.pdf, 2022. 53. World Economic Forum, Cyber Resilience in the Oil and Gas Industry: Playbook for Boards and Corporate Officers, https://www. weforum.org/whitepapers/cyber-resilience-in-the-oil-and-gas-industry-playbook-for-boards-and-corporate-officers/, May 2021. Securing the Energy Transition
43


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World Economic Forum
91–93 route de la Capite
CH-1223 Cologny/Geneva
Switzerland 
Tel.:  +41 (0) 22 869 1212
Fax: +41 (0) 22 786 2744
contact@weforum.org
www.weforum.org
The World Economic Forum, 
committed to improving  
the state of the world, is the 
International Organization for 
Public-Private Cooperation. The Forum engages the 
foremost political, business  
and other leaders of society  
to shape global, regional 
and industry agendas.


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/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_CapGemini_Conversations_Edition_7_Report_1705202.pdf


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2 Capgemini Research Institute Climate Tech: for a Sustainable Planet
The planet is undergoing dramatic changes. While there is growing 
acknowledgment of the urgency of the situation, a lot remains to be 
done.


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We need all of the latest climate technologies to come to bear 
with behavioral changes and innovation to fight climate change. The cover picture of this edition showcases nature in its most 
pristine form - an inspiration for all of us to work together to get the 
future we want. 


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33Capgemini Research InstituteClimate Tech: for a Sustainable Planet
At Capgemini, we 
help organizations 
prepare for tomorrow 
by distilling the 
unique insights and perspectives of leaders 
from global business, academia, the startup 
community, and wider society. Climate Tech, sustainability, and what’s 
next for our planet – from business 
leaders, scientists, gen next, and more
Through our quarterly journal, 
Conversations for Tomorrow, the Capgemini 
Research Institute identifies the strategic 
imperatives for the future of business and 
the society in which it operates. In this 
seventh edition of the journal, we look at 
the necessity to transform the way we live 
and do business – be that as individuals, 
organizations, countries, or the planet as 
a whole – through adopting and adapting, 
innovating, inventing, and embracing climate 
tech and sustainable practices. As a global 
society, we are seeing unprecedented 
change. Across organizations, sustainability 
is fast becoming a rallying cry.


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A key aspect 
of achieving sustainability goals is to drive 
greater adoption of technologies. Low-carbon hydrogen holds the potential 
to decarbonize heavy industry. Solar energy 
is already a hot topic in many markets. Scientists are looking into new areas of 
bioengineering to come up with sustainable 
alternatives. Tech startups are innovating 
across a range of areas, including carbon 
capture, spatial intelligence, food waste, 
and more. Electric vehicles (EVs) are rapidly 
making their presence felt in the automotive 
industry. Alternative fuels and alternative 
plastics are now more than lab experiments 
and are being tested for commercialization. AgriTech is helping the farming community 
cut emissions. Leading scientists have explained how 
they are innovating while simultaneously 
sounding the alarm that much more is 
needed.


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Sustainability leaders at global 
organizations have told us how they are 
transforming their organizations. Gen next 
is making its voice loud and clear: they want 
to see governments and business act with 
urgency. We would like to thank all the leaders and 
experts who have enriched this edition of 
the journal with their insights into climate 
tech and sustainability. By sharing insights 
from such a diverse range of accomplished 
individuals, we aim to present a clear view 
of the imperative to act, and the optimism 
that technology and science can bring to 
the table when it comes to tackling the 
existential issues that climate change poses. Key contributors include: 
• A Nobel Prize Laureate in Chemistry 
• A world-renowned architect and author
• One of the world’s leading climate 
scientists
• Senior executives from Air Liquide, P&G, 
Volvo Group, Enel Green Power, and 
L ’Oréal
• The Deputy Executive Secretary of the 
United Nations Framework Convention on 
Climate Change
• Head of a solar panel gigafactory
• A range of startups, including a top 
unicorn in carbon capture
• Gen next climate activists from the US, 
Kenya, and India
• Capgemini’s own subject-matter experts
Pulling together such a wide range of 
insightful perspectives was an extremely 
instructive exercise for us. We hope you 
enjoy reading this edition as much as we did 
putting it together for you.


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Foreword
Cyril Garcia
Head of Global Sustainability 
Services and Corporate 
Responsibility, Capgemini


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Contents
P.14P.14
THE CEO CORNER
P.28P.28
INSIDE  THE MIND OF A NOBEL 
PRIZE LAUREATE
P.14
François Jackow,
Chief Executive Officer,
Air Liquide
P.14 
Aiman Ezzat,
Chief Executive Officer, 
Capgemini
P.29
Frances Arnold,
Nobel Prize winner in Chemistry 
in 2018 for Directed Evolution
California Institute of Technology
4
Capgemini Research Institute Climate Tech: for a Sustainable Planet


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40P. 40
EXECUTIVE CONVERSATIONS WITH…
P.42
Alexandra Palt,
Chief Sustainability 
Officer,
L’Oréal 
P.52 
Virginie Helias, 
Chief Sustainability 
Officer, 
P&G
P.64 
Karin Svensson,
Chief Sustainability 
Officer, 
Volvo Group
P.74
Eliano Russo,
Head of the 
3Sun Gigafactory,
Enel Green Power
P.84
William McDonough,
Architect || Author,
Cradle to Cradle
P.94
Johan Rockström, 
Director,
Potsdam Institute for 
Climate Impact Research 
5
Capgemini Research InstituteClimate Tech: for a Sustainable Planet


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P.104P.104
THE CLIMATE TECH 
STARTUP CORNER
P.140P.140
VOICE OF GEN NEXT
P.106
Lucia Sinapi,
EVP and MD, 
Capgemini Ventures
P.114
Dr. Nathalie Casas,
Head of R&D, 
Climeworks
P.142
Arielle Kouyoumdjian, 
Teen Podcaster,
Founder, Changing Planet 
Justice, US
P.148
Vinisha Umashankar,
Founder, Solar Ironing Cart, 
India TEDx and COP26 
Speaker, The Earthshot 
Prize Finalist
P.152
Rahmina Paullete,
Climate activist at Fridays 
For Future International,
Founder of Kisumu 
Environmental Champs, 
Kenya
CLIMATE TECH 
START-UPS
Contents
P.126
6
Capgemini Research Institute Climate Tech: for a Sustainable Planet6


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7
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
P.166P.166
PERSPECTIVES FROM 
CAPGEMINI
WHY CLIMATE TECH IS 
PIVOTAL TO ACHIEVING A 
SUSTAINABLE PLANET
P.168
Cyril Garcia,
Head of Global Sustainability 
Services and Corporate 
Responsibility, Capgemini,
and
Florent Andrillon,
Climate Tech global lead, 
Capgemini
ALIGNING 
LEADERSHIP WITH 
SUSTAINABILITY
P.190
Elisa Farri,
Vice President and 
Co-lead of Capgemini Invent’s 
Management Lab
and
Gabriele Rosani,
Director of Content and 
Research at Capgemini Invent’s 
Management Lab
INCREMENTAL AND 
DISRUPTIVE INNOVATION 
IS THE ROUTE TO 
SURVIVAL
P.178
Pascal Brier,
Group Chief Innovation 
Officer and member of the 
Group Executive Committee
P.200P.200
INSIGHTS 
FROM THE CAPGEMINI 
RESEARCH INSTITUTE
P.201
Low-carbon hydrogen
A path to a greener future
P.206
A world in balance
Why sustainability ambition is not 
translating to action   
P.156P.156
FROM THE DESK OF…
P.157
Ovais Sarmad,
Deputy Executive Secretary, 
UNFCCC


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Executive Summary
The clock is ticking for organizations and 
individuals to act together to mitigate 
climate change. Soon, the alarm will go off.


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Sustainability is no longer an aspiration 
– it’s a global business imperative and 
a collective responsibility. Science, 
technology, corporate purpose, and all 
stakeholders must come together to 
address the ultimate challenge to our 
existence. The time 
to accelerate on 
sustainability initiatives 
was yesterday
We are very close to seeing irreversible 
changes to the planet.


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Our carbon budget 
is running out and there is little time left 
to do something about it. As of April 2022, 
humanity had already crossed six of the 
nine planetary boundaries, dramatically 
increasing the risk of large-scale 
irreversible environmental changes. Johan Rockström Director, Potsdam 
Institute for Climate Impact Research, 
drives home the message: “We currently 
emit around 40 billion tons of CO2 per 
year. With every passing day, the need for 
technology for CO2 removal becomes 
more urgent.”  
Executive Summary
8
Capgemini Research Institute Climate Tech: for a Sustainable Planet
With every passing 
day, the need for 
technology for CO2 
removal becomes 
more urgent.”  
Johan Rockström, 
Director, Potsdam Institute for Climate 
Impact Research


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And it’s not simply a matter of watching 
temperatures rise; every fraction of a 
degree of global warming results in loss of 
life and livelihoods. Ovais Sarmad, Deputy 
Executive Secretary, United Nations 
Framework Convention on Climate Change 
(UNFCCC), explains the situation in stark 
terms: “We are in a race against time to 
limit global warming not to exceed 1.5 
degrees Celsius in order to protect, prevent 
and preserve our natural resources, 
livelihoods and lives in all parts of the 
world.” 
The fight against 
climate change needs 
Climate Tech
Today, there is a growing acceptance of 
the role of technology in accelerating 
our collective efforts to make the planet 
sustainable. Eliano Russo , Head of Enel 
Green Power’s 3SUN Gigafactory in 
Catania, Italy, one of Europe’s leading 
manufacturers of solar panels, comments: 
“By using key technologies, we have 
already achieved a certified level of 
efficiencies.


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Technology is a big driver for 
the increase in efficiency that we anticipate 
in the years to come.”
Karin Svensson, Chief Sustainability 
Officer, Volvo Group, speaks on the 
importance of technology in the 
operations of an automotive giant: 
“Technology and data are central to 
everything we do. Being able to analyze 
data and take in data and to have our 
vehicles connected is a very important 
prerequisite in everything we do.”
While technology is a key driver of 
new sustainability initiatives, it can 
also be a powerful force for good in 
terms of nudging customers towards 
positive behaviors. Virginie Helias, Chief 
Sustainability Officer at P&G, comments: 
“I'm fascinated with the overlap between 
technology and sustainability. The 
real-life data helps us with compliance 
and making interventions when needed 
immediately.”
Executive Summary
9
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Technology 
and data are central to 
everything we do.”
I'm fascinated 
with the overlap 
between technology 
and sustainability."
Karin Svensson
Chief Sustainability Officer, Volvo Group
Virginie Helias, 
Chief Sustainability Officer, P&G


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Getting Climate Tech 
right requires us to 
understand it
Effective use of technology will require 
a change in leadership behaviors. Pascal 
Brier, Group Chief Innovation Officer at 
Capgemini, comments: “Effective solutions 
will also require business leaders to 
understand the construct of technology.


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Today, every business is a technology 
business. And they must be aware of 
how digital innovation can help their 
organizations achieve their sustainability 
targets.”
Directed evolution: 
Using nature to rescue 
itself
Nature has in her power the means to undo 
some of the damage that we have done 
to her. Frances Arnold, Nobel Laureate 
and Professor of Chemical Engineering, 
Bioengineering and Biochemistry at the 
California Institute of Technology, explains: 
“Nature is solving all sorts of problems 
– how to degrade plastic bottles, how 
to degrade pesticides, herbicides, and 
antibiotics. She creates new enzymes in 
response to these problems all the time, 
in real time. With ‘directed evolution,’ we 
can do the same; create new enzymes in 
response to new problems.” 
Executive Summary
10
Capgemini Research Institute Climate Tech: for a Sustainable Planet
Nature is solving all 
sorts of problems 
– how to degrade 
plastic bottles, how 
to degrade pesticides, 
herbicides, and 
antibiotics."
Frances Arnold, 
Nobel Laureate and Professor of Chemical 
Engineering, Bioengineering and 
Biochemistry at the California Institute of 
Technology


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The role of technology, computation, 
and automation is also acknowledged 
in academic research. Professor Arnold 
speaks on the importance of tech and 
AI: “Sustainability and evolution can be 
empowered by artificial intelligence 
and machine learning. I predict that, in 
the next few years, AI is going to be a 
powerful force - one capable of recoding 
life.” 
Harnessing the 
power of the sun to 
deliver sustainable 
energy
Enel Green Power’s Eliano Russo, 
comments: “Solar energy will play a key 
role in meeting the growing demand for 
sustainable energy. Currently, we are at 
1TW of installed solar capacity globally, 
but this is expected to increase sevenfold 
by 2040.” And as in other new areas of 
Climate Tech, digitization and automation 
can help in the transition to renewables.


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“Our factory has a strong level of 
automation and digitalization, which 
allows us to fully exploit digital intelligence 
and machine learning for quality control, 
reduce waste, and improve circularity,” 
Russo states.


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Shifting to low-carbon 
energy solutions will 
be key
The energy transition and the global 
imperative toward sustainability have 
driven organizations to explore new energy 
models and solutions. Hydrogen is gaining 
recognition as one of the possible routes 
to accelerating decarbonization of high-
emission sectors that do not use electricity 
directly. As a major new fuel source, it 
could also enable nations and organizations 
to reduce their dependencies on fossil 
fuels. Our research found that energy and 
utilities (E&U) organizations expect low-
carbon hydrogen to meet up to 18 percent 
of energy demand by 2050. Furthermore, 
currently 26 percent of E&U organizations 
are investing in low-carbon hydrogen 
initiatives and a majority (64 percent) are 
planning to invest by 2030; further, 98 
percent plan to do so by 2050. François Jackow, CEO of Air Liquide, 
highlights the opportunity: “Low-carbon 
electricity, which can be generated through 
both renewable and nuclear sources, will 
play a key role in the energy transition. This will be a principal contributor to our 
line of low-carbon-content products, as 
well as shrinking our customers’ carbon 
footprints.”
Executive Summary
11
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Solar energy 
will play a key role 
in meeting the 
growing demand for 
sustainable energy."
Eliano Russo,
Enel Green Power


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The future of renewable and green 
energy is evolving. Enel Green Energy’s 
Eliano Russo comments: “Renewable 
energy is currently the answer and the 
direction to go, and the focus should be on 
maximizing efforts to reduce CO2 emissions 
because time is running out to stabilize 
concentrations in the atmosphere.”
If we use technology as a catalyst and an 
enabler, the opportunities around low-
carbon hydrogen are immense, as William 
McDonough, renowned architect and 
author, explains: “I would love to focus 
on the idea of conceptually separating 
the terms ‘hydro’ and ‘carbon’ in the word 
hydrocarbon. I’m very excited about the 
idea of a technology that can use hydrogen 
as a clean fuel and carbon as a durable 
good that does not go fugitive in the 
atmosphere or require sequestering in the 
geosphere.”
Carbon capture: Need 
of the hour
To slow climate change, companies have 
set the target of dramatically shrinking 
their carbon footprints to reduce CO₂ 
emissions by at least 90 percent before 
2050. However, that will still leave around 
10 percent of current levels of unavoidable 
emissions.


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Carbon removal is crucial to 
neutralizing these emissions and keeping 
global warming around the 1.5°C target. Organizations are using a variety of 
technologies, including Direct Air Capture 
(DAC) technology, to capture CO2 from 
the atmosphere. Nathalie Casas, Head of 
R&D at Climeworks, highlights the growing 
importance of carbon capture: “The market 
for carbon dioxide removal has basically 
had an exponential development over the 
past two, two and a half years.”
For sustainability 
initiatives to succeed, 
innovation must be 
supported by behavioral 
change
As organizations undergo the massive 
transition to sustainability, the debate 
turns to whether the focus of efforts 
should be encouraging changes in 
consumer behavior or the acceleration 
of innovation. The answer, however, lies 
in effectively combining innovation with 
behavioral nudges.


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Nobel Laureate Dr Frances Arnold affirms 
the need for a combined approach: “We can 
offer scientific solutions, good or bad, but 
if people don't change and people don't 
want them, it's not going to happen.” P&G’s 
Virginie Helias adds: “We are innovating 
our products while nudging the consumer 
to drive behavioral change. I could develop 
the best products out there but, if I cannot 
get our consumers to use it, there will be 
no impact. So, it needs to be both”
Climate Tech startups: 
The key to our fight 
against climate change
Over the past two decades, startups have 
become a critical source of innovation, 
from carbon capture to nuclear fission. Nathalie Casas, Head of R&D at 
Climeworks, a leading Swiss company 
active in the carbon-capture space, 
comments: “We need to extract billions of 
tons of CO₂ between now and 2050, a task 
so gargantuan that we will need all known 
carbon-removal solutions to work together, 
uniting nature and technology in urgent 
symbiosis.”
We are all in it 
together
Gone are the days when an organization 
could take sustainability initiatives in 
isolation and at its own pace. Alexandra 
Palt, Chief Sustainability Officer at L 'Oréal, 
highlights the criticality of the need for 
collective action: “We need to understand 
the climate crisis we are in and align our 
targets and ambitions together.


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There is 
very strong role of leaders today to foster 
innovation” “Climate change is not a local 
issue, it’s a planetary issue. We have to take 
necessary decisions now, individually and 
collectively.”
Volvo’s Karin Svensson underscores why 
we need to form partnerships across 
business ecosystems: “Unlike in the past, 
there is now a strong need to work with 
competitors, suppliers, and governments to 
ensure transformation of our products. The 
time now is about winning together and 
not winning alone.“
Executive Summary
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The CEO 
Corner
François Jackow
Chief Executive Officer, 
Air Liquide
Aiman Ezzat 
Chief Executive Officer,
Capgemini
in discussion with 
The CEO Corner
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François Jackow joined the Group in 1993. He is the Chief Executive Officer of Air 
Liquide since June 1st, 2022. He chairs the 
Executive Committee of which he has been 
a member since 2014. After starting with 
Air Liquide, he has held various positions 
in Marketing, Business Development, 
Engineering and Strategy in the United 
States, the Netherlands and France. From 2002 to 2007, François Jackow was 
in charge of Innovation, as Vice President 
of Research, Development, and Advanced 
Technologies for the Group. From 2007 
to 2011, he was President and CEO of Air 
Liquide Japan based in Tokyo. From 2011 
to 2014, he headed the Large Industries 
business line and from 2014 to 2016 was in 
charge of Corporate Strategy. From 2016 
to 2022, he supervised Europe Industries, 
Europe Healthcare and Africa / Middle East / 
India hubs, as well as the Healthcare business 
line. From 2020 to 2022 he also supervised 
the Innovation, Technologies and Digital / IT 
functions.business administration both from 
France and the United States. François Jackow, 
Chief Executive Officer, 
Air Liquide
Aiman Ezzat, 
Chief Executive Officer, 
Capgemini
With more than 20 years’ experience at 
Capgemini, Aiman Ezzat has a deep knowledge 
of the Group’s main businesses. He has worked 
in many countries, notably the UK and the US, 
where he lived for more than 15 years.


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Aiman 
was appointed CEO in May 2020; prior to that, 
from 2018 to 2020, he served as the Group’s 
COO and, from 2012 to 2018, as CFO. Aiman is 
also on the Board of Directors of Air Liquide 
and is a Member of the International Business 
Council of the World Economic Forum. Capgemini is a global leader in partnering with 
companies to transform and manage their 
business by harnessing the power of technology.


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The Group is guided everyday by its purpose of 
unleashing human energy through technology 
for an inclusive and sustainable future. It is a 
responsible and diverse organization of 360,000 
team members in more than 50 countries. With 
its strong 55-year heritage and deep industry 
expertise, Capgemini is trusted by its clients 
to address the entire breadth of their business 
needs, from strategy and design to operations, 
fueled by the fast evolving and innovative world 
of cloud, data, AI, connectivity, software, digital 
engineering and platforms.


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The Group reported 
in 2022 global revenues of €22 billion. The Capgemini Research Institute spoke to Francois and Aiman to understand their views on the challenges of 
climate change, energy transition and the potential of emerging technologies to fight this planetary challenge
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You took over the general management of Air Liquide as 
the energy crisis and climate change rose up the corporate 
agenda. How is this context affecting the Air Liquide Group? — François Jackow: The energy crisis clearly presents us with a paradox: 
despite the risks and uncertainties, there are unprecedented opportunities 
to invest in the development of innovative, permanent solutions to the 
problems of our customers and of society in general. Decarbonization needs 
to play a key role in managing the affordability of energy and the security of 
the supply chain and this is a clear opportunity for Air Liquide.


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For instance, 
one of the services we now offer is oxy-combustion, which is a technique for 
making glass using oxygen; this reduces the use of natural gas by 10 to 35%,
while also reducing CO2 emissions, which are both significant benefits to our 
customers. François Jackow
Despite the risks and 
uncertainties, there 
are unprecedented 
opportunities to invest 
in the development 
of innovative, 
permanent solutions 
to the problems of our 
customers and of society 
in general."
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Which climate technologies will play important roles in the 
energy transition? — François Jackow: One area that stands out is low-carbon electricity, 
which can be generated through both renewable and nuclear sources. This 
will be a principal contributor to our line of low-carbon-content products, 
as well as shrinking our customers’ carbon footprints.


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I also think that 
carbon capture, utilization, and sequestration (CCUS) is going to be very 
significant, particularly since all the technological bricks required (be it 
capture, transportation or storage) have now 
been proven safe and economical. These 
technologies can be applied as of now to 
very large quantities, and could, therefore, 
have a huge impact across the spectrum 
of carbon emissions, notably in the hard-
to-abate industries where no alternative 
exists. It is, however, important to keep in 
mind that, while CCUS will help us meet 
our short-term objectives, it should not be 
used as an excuse to halt the development 
of other technologies. We need to continue 
the structural transition to renewable and 
circular processes. — Aiman Ezzat: The success of the shift to a 
low-carbon economy will depend heavily on Aiman Ezzat
The success of the 
shift to a low-carbon 
economy will depend 
heavily on technological 
innovations such as 
green hydrogen and 
CCUS, as well as the 
evolution of batteries."
François Jackow
"Carbon capture, utilization, and 
sequestration (CCUS) is going to be very 
significant, particularly since all the 
technological bricks required (be it capture, 
transportation or storage) have now been 
proven safe and economical."
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technological innovations such as green hydrogen and CCUS, as well as the 
evolution of batteries. I believe there will also be an important contribution 
from alternative fuels and remain confident that nuclear will play a critical 
role in the energy transition. Solar is an underexplored arena; with advances 
in the efficiency of solar panels, solar energy could prove a key transition 
technology in many geographies. However, as François highlighted, it 
is important to note that transitioning to renewable energy or relying 
on climate tech will not be enough. We need to rethink our design and 
production methods to do business in new and better ways. What do you see as the role of low-carbon hydrogen in the 
future energy mix and what are the challenges of scaling 
the relevant technology? — François Jackow: The first challenge is to establish a secure supply of low-
carbon electricity, either from renewables or nuclear; today, globally, this 
is the bottleneck. The second challenge is to scale up hydrogen-production 
technologies. Take electrolysis; Air Liquide operates today the largest proton 
exchange membrane [PEM] electrolysis unit in the world [its 20-MW unit 
in Canada]. We need to scale that up tenfold – perhaps even as much as a 
hundredfold – to make an even more significant contribution.


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Another big 
challenge is, obviously, to boost market demand, not only by improving the 
infrastructure, but also promoting the usage of hydrogen. That will rely on 
effective public-policy incentives.


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Aiman Ezzat
Transitioning to renewable 
energy or relying on 
climate tech will not 
be enough. We need to 
rethink our design and 
production methods to do 
business in new and 
better ways."
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— Aiman Ezzat: Hydrogen holds great promise as a sustainable, energy-
dense fuel that could ultimately replace oil and gas as a principal energy 
source. Our research shows that energy organizations & utilities expect low-
carbon hydrogen to meet up to 18% of energy demand by 2050.


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Investment 
in the area is already taking off and is set to increase significantly. But there 
are important obstacles starting with cost: low-carbon hydrogen is still  2–3 
times more expensive to produce than carbon-based hydrogen. Moreover, 
the high costs of storage, transportation, as well as energy losses across the 
value chain all contribute to an increased total cost of operations.


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Finally, 
there are also engineering and skill shortage challenges that organizations 
must contend with. In the US, the Inflation Reduction Act is driving a lot 
of investment towards sustainability. What should 
government be doing to drive investment in Climate Tech 
and low-carbon hydrogen especially? — François Jackow: Governments must feel the sense of urgency, and 
the responsibility to take action now. Sovereignty and sustainability are 
closely related, and they offer business opportunities for any country - 
this is one of the key learnings of the recent past. In order to capitalize on 
these opportunities, governments must put in place a policy framework 
that recognizes the value of carbon, and which will then drive economic 
behaviour based on that recognition. François Jackow
Sovereignty and 
sustainability are closely 
related, and they offer 
business opportunities 
for any country - this is 
one of the key learnings 
of the recent past."
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— Aiman Ezzat: The US has made a good start and we are seeing growing 
momentum across Europe as well. Looking specifically at green hydrogen, 
France has already committed to spending over €9 billion ($9.9 billion) to 
encourage the transition of heavy industry to hydrogen. The UK plans to 
invest £4 billion ($4.8 billion) in creating a low-carbon hydrogen industry by 
2030. It is targeting 5 GW of annual production capacity – sufficient to power 
around 3 million homes – as well as heavy industry. Globally, momentum is 
definitely growing but, as François mentioned, we need broader frameworks 
that incentivize businesses while encouraging the growth of Climate Tech. Where are your organizations on their net zero journeys?


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— François Jackow: Achieving net zero is a serious challenge for any 
manufacturing company, especially when you are undergoing an energy 
transition. We were the first company in our sector to set carbon-intensity
objectives and we are now 25% below the 2015 carbon-intensity level.


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However, two years ago, we realized we needed to set more – and more 
specific – objectives in terms of our absolute carbon emissions.


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We have 
targeted carbon neutrality by 2050. Air Liquide’s target of reducing its 
scope-1 and -2 CO2 emissions by 2035 has been validated by the Science 
Based Targets initiative (SBTi). We are the first organization in our industry 
to obtain such validation from a leading, independent authority such as the 
SBTi and this represents significant recognition of Air Liquide’s trajectory 
to reach carbon neutrality by 2050. CO2 emissions reduction is a key 
objective of our strategic plan for 2025. Air Liquide’s strong commitment to 
a sustainable future includes not only reducing the carbon emissions of its 
own assets, but also helping our customers to reduce their CO2 emissions 
and developing low-carbon ecosystems. — Aiman Ezzat: At Capgemini, we are fully committed to sustainability. We are proud of being one of the first companies in the world to have its 
net zero targets validated against the new, more exacting SBTi standards 
published at end-2021. We have set more ambitious near-term (2030) and 
long-term (2040) carbon-footprint targets, notably with a 90% reduction in 
all emissions (scopes 1, 2, and 3) by 2040. As of end-2022, Group-wide carbon 
emissions had already fallen by 29% (and 46% per employee) against the 
2019 baseline set by the SBTi. Our ambitions are supported by initiatives such as our new-energy command 
center in India, which has used extensive digital data analysis to reduce our 
energy consumption by around 20%, across all our campuses. On the back 
of progress achieved by Capgemini in 2022, the Group was admitted to the 
Dow Jones Sustainability Index (DJSI) Europe at the end of the year. The CEO Corner
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How do you ensure that all stakeholders contribute towards 
the reduction of scope-3 emissions? — François Jackow: Because we need to take into account the full value 
chain, it's critical that every stakeholder takes responsibility for reducing 
their own scope-1 and scope-2 emissions. Currently, we are sourcing 
renewable electricity and seeking to limit emissions from some of our units.


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However, what we really need for effective control of scope-3 emissions 
is a unified set of standards across sectors. We are working actively with 
associations such as the SBTi to develop an effective measurement and 
reporting framework, and are already reporting on nine of the 13 scope-3 
categories. Working on a more consistent industry wide view of scope-3 
emission reporting, we have decided to already set the objective to have 
100% of our top-50 largest customers committed to carbon neutrality by 
2035. — Aiman Ezzat: Although we can’t directly control all the scope-3 emissions 
in our value chain, as a global company, travel consistently contributes the 
largest share of Capgemini’s carbon footprint. We are raising our near-
term (2030) scope-3 targets for commuting and business travel to a 55% 
reduction per employee against a 2019 baseline.


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Establishing a reliable universal 
measurement mechanism is the first key action. There are no short-cuts; it 
involves working closely with all stakeholders to help them understand and 
act according to their roles in the value chain. How are you aligning the organization to drive 
sustainability at all levels? — François Jackow: Firstly, we need to set clear objectives - in line with 
our ambition to be Climate champions. Secondly, we must communicate 
them clearly to ensure that sustainability is at the core of the Group’s 
growth strategy, business model, and value creation, and that all employees 
understand their role in achieving the objectives. Lastly, we need to ensure 
that we are consistent and credible, both within the organization and 
externally. For instance, one of the most powerful things that we have done 
is to implement a carbon budget: a few years ago, we allocated investment 
to creating a carbon envelope around our operations. This has changed 
the mindset of employees, who now prioritize projects that align with the 
company's carbon trajectory and emissions-reduction goals. The CEO Corner
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— Aiman Ezzat: Sustainability must not be managed as a compliance project. Rather, it requires enterprise transformation, like the digital transformation 
programs that many organizations have launched.


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This transformation 
affects all parts of the business – from design of the business model and 
product line to operations and IT. It requires proper governance, headed by 
a C-suite executive. Having strong board support is also key to the success of 
sustainability initiatives. As a CEO, it is important to unify the organization 
in its purpose, removing silos and encouraging functions and teams to work 
closely to achieve their sustainability goals. Organizations must recognize 
the urgent need for viable sustainability initiatives, led and supported by 
realistic short-term goals. How important do you think collaboration will be in 
achieving decarbonization? — François Jackow: Collaboration is a key aspect of our sustainability 
journey. We work with our customers to invent new manufacturing 
techniques and set more stringent objectives.


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Today, our initiatives address 
not only product innovation, but also system innovation. We collaborate with 
different stakeholders, customers, suppliers, and partners, to develop an 
ecosystem of solutions. It is absolutely vital that different stakeholders each 
bring a piece of the puzzle and collaborate towards a common objective. We need a further-reaching, comprehensive outlook to impact all the 
stakeholders - not just customers, but also employees and shareholders - in 
the sustainability journey. Aiman Ezzat
"Sustainability requires enterprise 
transformation, like the digital transformation 
programs that many organizations 
have launched."
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— Aiman Ezzat: We can achieve a sustainable future only through 
deep collaboration with our clients, suppliers, and other stakeholders. Decarbonization will result from reconstructing the way we do business 
and rethinking our entire value chain and products.


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To 
find lasting, meaningful solutions, leading voices from business, academia, 
and government must come together to discuss our options as a society. The Conversations for Tomorrow journal is one of many such initiatives that 
Capgemini takes to juxtapose diverse viewpoints. Our research indicates that most executives still view 
sustainability as a cost driver and an obligation, rather than 
a business opportunity. How do you convince your clients 
that sustainability is good for business? — François Jackow: We engage with our customers regularly on these 
topics and we have identified three sustainability drivers. The first driver, 
particularly in Europe, is to reduce emissions sufficiently to avoid paying 
the EU Emissions Trading System (EU ETS) carbon tax. The second driver for 
engaging participation in a carbon-reduction project is helping customers 
meet their corporate commitments and objectives in terms of carbon 
trajectory. The third – and most important – driver is helping customers 
see opportunities to promote and develop low-carbon offers, services and 
products. When our customers realize that they can gain
competitive advantage and create added value by offering sustainable 
products, that's when a sustainable business model really starts to take 
François Jackow
Collaboration is 
a key aspect of 
our sustainability 
journey."
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shape. Decarbonization and sustainability 
shift to opportunity-driven goals, rather 
than compliance-driven obligations for the 
customer. What new energy business models 
do you anticipate will emerge in 
the medium term? — François Jackow: In their economic 
valuations, our customers are putting 
an emphasis on carbon reduction. By 
developing solutions that use traditional 
industrial products such as oxygen, nitrogen, 
and hydrogen, while also helping to reduce 
their own carbon footprint, we can create 
a lot of value for our consumers. But this 
will entail rethinking how we deliver our 
products, and exploring new schemes to 
package our offers.


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Secondly, we see a new 
business model for mobility. There's value 
to be created, not only in providing fuels 
for mobility, but also in changing the way 
transports (trucks, bus, train, etc.) are used 
logistically for example. Business models are 
changing because customers are willing to 
own fewer assets and embrace a different 
kind of business model, based on re-use. — Aiman Ezzat: The energy transition is 
driving new business models in the energy 
and utilities market. These include clean 
energy; alternative fuels; grid-management 
services; and mobility services such as 
electric-vehicle (EV) charging stations, 
energy-storage solutions, and energy 
platforms.


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As the share of renewables in 
the energy mix increases, energy-storage 
solutions and grid-management services 
will be critical to managing intermittency 
in renewable-energy supply. Further, as 
consumers increasingly turn into prosumers, 
François Jackow
Decarbonization 
and sustainability 
shift to 
opportunity-driven 
goals, rather than 
compliance-driven 
obligations for the 
customer."
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there is growing demand for renewable-
energy storage systems for residential and 
commercial use, and for platforms that 
facilitate peer-to-peer energy exchange. Our research on this topic found that most 
energy and utility industry executives 
expect new energy models to constitute 
their mainstream business within the next 
few years. What advice would you give 
to your peers on how to 
manage large organizations in 
such a volatile and uncertain 
environment? — François Jackow:  Firstly, in a volatile, 
challenging environment, we need a clear 
strategy based on strong fundamentals. My second piece of advice relates to 
execution; we need to be agile and adapt 
to changes in the environment.


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We cannot 
afford to waste time or resources, so 
we need urgent access to the tools and 
organizations that can provide efficacy 
and efficiency, while building more 
resilient business models. Lastly, we must listen: to our customers, 
who will act as our guides, and - equally 
important - to our employees. We need 
to engage them, communicate with them, 
explain our strategy.


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They need to feel 
that they are on the journey together. Aiman Ezzat
The energy transition 
is driving new business 
models in the 
energy and utilities 
market."
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"In a volatile, 
challenging 
environment, we 
need a clear 
strategy based on 
strong
fundamentals."
François Jackow
Chief Executive Officer, 
Air Liquide
Aiman Ezzat 
Chief Executive Officer,  
Capgemini
"Decarbonization 
will result from 
reconstructing 
the way we do 
business and 
rethinking our 
entire value chain 
and products. "
The CEO Corner
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Inside the mind of a
Nobel
Prize laureate
Inside the mind of a Nobel Prize laureate
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DR. FRANCES 
ARNOLD
Nobel Prize winner in
Chemistry in 2018 for
Directed Evolution 
California Institute of Technology
Inside the mind of a Nobel Prize laureate
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Inside the mind of a Nobel Prize laureate
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Dr. Frances Arnold is the Linus Pauling Professor 
of Chemical Engineering, Bioengineering and 
Biochemistry at the California Institute of 
Technology (Caltech). Dr. Arnold received the Nobel 
Prize in Chemistry (2018) for pioneering directed 
enzyme evolution and has subsequently created 
enzymes for use in alternative energy, chemicals, 
and medicine. She is co-chair of the President’s 
Council of Advisors on Science and Technology 
(PCAST).


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She has been elected to all three US 
National Academies of Science, Medicine, and 
Engineering, and is also a director on the boards 
of prominent companies such as Alphabet and 
Illumina.


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The Capgemini Research Institute spoke 
to Dr. Arnold to understand how directed evolution, 
coupled with the resilience found in nature, can help 
create a sustainable world. Dr. Frances Arnold 
GIVING 
EVOLUTION A SHOT 
IN THE ARM


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WHAT IS DIRECTED EVOLUTION? What got you interested in science?


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I had all sorts of jobs when I was young, from taxi-driving to cocktail 
waitressing; but these were to pay the rent. Math and science were what 
made sense to me from an early age. I idolized my father, a nuclear physicist. I obtained a BSc in Mechanical and Aerospace Engineering and worked for 
a while in the nuclear industry and in solar energy, but my real love turned 
out to be something I did not even know could be possible until I went to 
graduate school at age 25: engineering the biological world. You won a Nobel Prize for your pioneering work on the 
directed evolution of enzymes.


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Can you help us understand 
what that is and how it can help society? Enzymes are the catalysts responsible for all the wonderful chemistry of 
the biological world. We would like to use them in human applications, but 
they are not ideal for this. So, in the 1980s, I started to engineer amino-
acid sequences for enzymes that would perform in human applications. Back then, no one knew which sequence would be required to encode a 
desired function – enzymes are complicated. However, evolution can show us how to 
encode enzymes more effectively. The simple 
process of mutation and natural selection 
that has given rise to the rich diversity of 
the biological world can be harnessed by 
chemists. Using newly developed tools in 
the fields of molecular biology and high-
throughput screening, I developed ways to 
practice “evolution by artificial selection” for 
enzymes. In other words, this is a simple optimization strategy for making random 
mutations at a low level and screening to find the mutations that can 
be most beneficial to us.


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Through various iterations, we find the best-
performing steps. Nature is solving all sorts of problems that we throw at 
her – how to degrade plastic bottles, how to degrade pesticides, herbicides, 
and antibiotics. She creates new enzymes in response to these problems all 
the time, in real time. With directed evolution, we can do the same – create 
new enzymes in response to new problems. I developed ways to 
practice 'evolution by 
artificial selection' 
for enzymes." 


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THE SIMPLE PROCESS 
OF MUTATION AND 
NATURAL SELECTION THAT 
HAS GIVEN RISE 
TO THE RICH DIVERSITY 
OF THE BIOLOGICAL 
WORLD CAN BE 
HARNESSED BY CHEMISTS
ENZYMES FOR A GREENER PLANET
Much of your research focuses on sustainability. What 
about this area of study excites you most?


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What excites me most right now is expanding the chemistry of the biological 
world to compete with human chemists. Making and breaking bonds. All 
my projects are about sustainability or bioremediation – making things in a 
cleaner fashion or breaking them down again. I love working with enzymes.


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Nature has developed a vast array of enzymes that do incredible chemistry, 
but there's a lot that hasn’t been explored yet. We could have better processes by getting enzymes to do chemistry 
that would, for instance, dramatically reduce the cost of manufacturing 
pharmaceuticals by replacing 10 chemical steps with one or two enzymes. One particular example I am proud of is how Merck [a multinational science 
and technology company] developed an enzyme using directed evolution to 
make the drug Januvia, which is used to treat diabetes. The initial, unrefined 
process used toxic metals, with a lot of waste products. Merck has managed 
to reduce the waste to around one-hundredth of initial levels and remove 
toxic-metal catalysts from their process, just using enzymes to synthesize 
the pharmaceuticals. 


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I am also excited about reducing the cost and time necessary to develop 
these enzymes and the processes they are used in. I am working to 
incorporate machine learning [ML] and artificial intelligence [AI] into this 
evolutionary optimization.


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It promises to allow us to develop biological 
solutions much faster than in the past. "Merck has managed to 
reduce the waste to around 
one-hundredth of initial levels 
and remove toxic-metal catalysts 
from their process, just using 
enzymes to synthesize the 
pharmaceuticals."  


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How can bioengineering help the 
planet? Everything that nature does is efficient.


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It's this highly evolved system that makes 
and breaks chemical bonds, creating 
chemicals and materials of magnificent 
functionality – but that won’t persist 
forever. I think that biological chemistry, 
with its very high selectivity and power 
efficiency, can broaden our thinking 
around fabrication and recycling. Not 
only can we help break down everything 
we use in our daily lives into recyclable 
elements, we can also help create new 
products entirely, things which are not 
possible using traditional chemistry. Biological chemistry can have a beneficial 
effect on any application of conventional 
chemistry, and we should use it to find 
efficiencies. Life today is the product of 4 
billion years of evolution, not of engineers 
in a laboratory.


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Nature has a lot to teach 
us. You have co-founded three 
companies in the sustainable 
chemistry and renewable energy 
fields. Can you briefly describe 
them? We founded Gevo [Green Evolution] 
in 2004 to make fuels from renewable 
resources. The concept was to engineer 
enzymes in yeast to make isobutanol, a 
precursor to jet fuel, instead of ethanol. Today, Gevo is one of the leaders in the 
development of renewable aviation fuel. "Everything 
that nature does 
is efficient." 


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
The second company, Provivi, was founded in 2014 to replace toxic 
pesticides. We developed processes to make non-toxic pheromones, 
chemicals that serve as signaling mechanisms, which, when sprayed in the 
field, confuse the mating instinct of insects.


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Our focus is to create a new 
foundation for safer, affordable, and sustainable crop protection. The third company, Aralez Bio, was formed more recently, in 2019. It uses 
enzymes to make pharmaceutical intermediates.1 They can make hundreds 
of new amino acids and other chemical building blocks, while cutting waste, 
energy consumption, and costs. LIFE TODAY IS THE 
PRODUCT OF 4 BILLION 
YEARS OF EVOLUTION, 
NOT OF ENGINEERS 
IN A LABORATORY. NATURE HAS A LOT TO 
TEACH US. 1 Chemical compounds widely used in bulk pharmaceutical manufacturing and also in research.


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Inside the mind of a Nobel Prize laureate
36
Capgemini Research Institute Climate Tech: for a Sustainable Planet
USING AI TO CREATE NEW PROTEINS
How is new technology helping 
your research in bringing 
enzymes faster to market? Evolution is a process.


