Tackling climate change means radically transforming the vast network of infrastructure which makes the modern world go. For example, we'll need to make significant changes to our power generation, our transport, and our buildings. The OECD calls for $6.9tr in investment each year to 2030 to meet climate and development objectives – a little under $1,000 per year for every person on the planet. How can this be paid for?
Private equity and government/international partnerships both have a role to play. Policymakers face tough challenges such as balancing competing demands on public finances and ensuring fairness in how costs are borne. In addressing this affordability challenge governments will need to deploy a policy mix of carbon taxes, emissions caps and subsidy schemes.
Progress in green technology could help to bring costs down. In fact, the International Energy Agency predicts that roughly half our carbon efficiency by 2050 will be powered by technologies that currently only exist as prototypes.
Read our full analysis, including new research into the scale of both the decarbonisation and affordability challenge for 80 representative countries and regions.