How transition plans this decade can rewire finance for 1.5°C

Transition plans should sit at the heart of investment and capital allocation strategies to kickstart what should be a decade of exponential change to ‘green’ all sectors of the economy

What is clear from all climate change scenario pathways to 1.5°C—for example, the IEA’s Net Zero Emissions and DNV’s Pathway to Net Zero—is that there needs to be an urgent and steep transition within all sectors of the economy. These scenarios imply a radical transformation of the energy sector, characterised by a manyfold increase in solar and wind, low-carbon hydrogen production, and carbon capture and storage build-out, as well as significant investments in power grids and energy efficiency measures. The key message is that we need exponential change and not an incremental fine-tuning of current trends. This scale of change needs to be well underway within this decade. Overshooting carbo