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 |
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.
Cities affected by the climate crisis.
EXAMPLE COSTS |
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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 |
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 |
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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. |