Put a price on carbon. Today 21.5% of global emissions are covered by carbon pricing tools, up from 5% over the last decade and with carbon prices increasing almost 500%. Global investors are implying carbon prices of up to USD 130/tCO2 in the cost of capital of long-term projects. Carbon has become an asset or cost requiring management. To remain competitive, companies will have to reduce their emissions.
Stop subsidies. We must discontinue subsidies for fossil-derived hydrocarbons and hence further increasing the competitiveness of the clean alternative.
Be in the lead. Governments should lead by example and help nascent technologies by piloting them in their own projects, so-called green public procurement policies.
Enable innovation. Governments need to increase funding across all stages of deep tech development to grow the total number of startups in climate innovation and help them gain significant scale.
Act as a catalyser. The role of public funds is to mobilise private capital. Sovereign wealth funds should act as a lighthouse and enabler by anchoring funds early.