CREATE AN ECONOMIC CLUSTER

Economic clusters are hubs where companies, suppliers, and institutions collaborate to drive innovation and growth.

Clusters fuel economies by fostering competition, providing businesses access to resources, talent, and knowledge.

Synergy drives success by pooling strengths, reducing costs, and sharing ideas, attracting talent and investment.

Clusters create demand by driving innovation and pushing businesses to leverage shared expertise and resources.

Global visibility grows in clusters, attracting industry leaders and positioning NYC’s FiDi as a carbon-zero hub.

Clusters worldwide

Examples of clusters across the globe.

 

THE ECONOMY
of Carbon Zero

The Carbon Zero Cluster taps into the rapidly expanding carbon-zero economy, which spans multiple established industries and around the world. Companies within the cluster will drive innovation, offering high-growth, profitable products and services that are essential for the future.

Key Industries in the Carbon Zero Economy Annual Revenues by 2030
Transportation $2.3 to $2.7 trillion
Building $1.3 to $1.8 trillion
Power $1.0 to $1.5 trillion
Water $1.1 to $1.2 trillion
Consumer $850 billion to $1.5 trillion
Agriculture $550 billion to $1.2 trillion
Fuels $650 billion to $1.15 trillion
Hydrogen $650 to $850 billion
Waste $300 to $400 billion
Industrials $250 to $300 billion
Carbon $100 to $200 billion
Source: McKinsey

$12.3 TRILLION
Expected to generate over $12 trillion annually by 2030, the carbon-zero economy spans industries from renewable energy to sustainable agriculture, combining profit with cutting-edge innovation.

GDP COMPARISON
By 2030, the carbon-zero economy is projected to surpass the GDP of major nations and states like California, driven by accelerating demand for sustainable solutions.

DEMAND DRIVERS
of the Carbon Zero Economy

One driver of the climate response market is the impact starting to be felt in cities worldwide, including the economic. From London to Lagos, Jakarta to Johannesburg, cities are starting to experience the need to mitigate climate impact, and adapt to it. Carbon Zero City will be a working model.

Clusters worldwide

Cities affected by the climate crisis.

A second driver is the cost of climate inaction or inadequate action: By 2050, by some estimates, including by insurance companies, the cost of the climate crisis could exceed the GDPs of major economies. This is driving demand for responses to the climate crisis.  

EXAMPLE COSTS
Global economic losses: Climate disasters could cost $1.7 trillion by 2030. Source: Munich Re, 2022
Property damage: Extreme weather results in $650 billion annual losses. Source: Aon, 2022
Agricultural yields: Global yields could drop 10-20% by 2050, costing $2.5 trillion. Source: FAO, 2022
U.S. infrastructure damage: Climate events could cause $700 billion in damage by 2050. Source: NAS, 2023
Energy costs: Managing climate change could reach $5.4 trillion by 2050. Source: IEA, 2021
Climate-related health issues: Could add $200 billion annually to global health costs by 2030. Source: WHO, 2022
Climate-induced displacement: Could cost $20 billion annually by 2030. Source: IDMC, 2023

COST DRIVEN
Insurance giants like Munich Re recognize the escalating costs and risks of the climate crisis. With more frequent and severe weather events, insurers face rising claims, making the crisis a financial liability. Munich Re has warned that climate change threatens global stability, driving up premiums and pushing the industry to focus on mitigation and adaptation efforts.

COST DRIVEN
The cost of inaction is escalating rapidly. Insurance companies see the cost-benefit of taking meaningful action to address the climate crisis through both mitigation and adaptation.

A third driver are inadequate government efforts. Governmental efforts are needed, but to date have fallen short. New bold grass roots, private sector-led approaches are also needed.

Climate Policy Failures
Kyoto Protocol (1997)
A historic treaty to reduce emissions but lacked enforcement mechanisms. The U.S. never ratified it, weakening its overall impact.
Green Climate Fund
Established to support developing nations in combating climate change, but funding shortfalls have hampered its progress.
EU Emissions Trading System (ETS)
An initiative to reduce emissions, but early issues like allowance oversupply weakened its effectiveness.
Carbon Offsetting Initiatives
Criticized for lack of transparency and minimal real impact on emission reductions.
U.S. Clean Power Plan (2015)
Aimed to cut power plant emissions, but faced legal challenges and was ultimately blocked.
Paris Agreement (2015)
Set a global target to limit warming to 1.5°C, but most nations are falling short of their commitments.
UN Climate Conferences (COP)
Regular climate summits, yet many, such as COP28, have faced criticism for lack of ambition and real action.

A fourth driver: urban population growth. Rapid growth, especially in developing markets, magnifies both the challenges, and opportunities, generated by the climate crisis. 

URBAN POPULATION
Driving demand for urban-oriented climate solutions is the fact that more and more people live in cities (Source: UN).

2018
At present, many of the major cities are generally developed with infrastructure (Source: UN).

2100
But by 2100 many mega-cities, especially in Africa and Asia, will exceed 50 million residents Source: Ontario Tech.

Roadmap

Problem

Mission

Carbon Zero Economy

  • Carbon Zero Dwarfs GDPs
  • $12.3 trillion
  • Cost incentive

Demand Drivers

  • Rising climate risks worldwide
  • The cost of inaction
  • Inadequate government efforts
  • Urban population growth