Swiss Re Institute: Decarbonisation tracker, progress to net zero through the lens of investment
"The green bond market still accounts for less than 2% of the value of the global bond market: it is far too small. Stronger action is needed on reducing barriers to investment and international convergence on the taxonomy for climate and green investments." Jerome-Jean Haegeli, Swiss Re Group Chief Economist
This study tracks progress on decarbonisation through the lens of investment, as a measure of how far the world is from reaching the Paris Agreement and net zero by 2050 targets. As of 2022, we estimate that a global investment gap of USD 290 trillion, or USD 271 trillion excluding investments in fossil fuels, remains between actual investment needs for net zero by 2050 and capital deployed as of 2022. The USD 271 trillion investment gap translates into an average annual gap of USD 9.4 trillion between 2022 and 2050, assuming investments are equally spread across the years.