Financing the Transition to a Carbon-Neutral Economy
Financing the Transition to a Carbon-Neutral Economy
1 PagesDemand for carbon-neutral investment is rising as countries commit to limiting global temperature increases to 1.5°C. Meeting this goal will require significant capital, with banks expected to play a major role by investing up to $600 billion annually through 2030, primarily in the US and Europe. Loans and leases are expected to generate most near-term revenue from the transition, creating sizable incremental revenue pools. After 2030, investment needs will accelerate further, Asia-Pacific is expected to lead growth, and global corporate loan opportunities could reach trillions, offering pioneering banks the potential for higher profits.
