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Closing the Investment Gap: Policies to Accelerate Transition Finance

Closing the Investment Gap: Policies to Accelerate Transition Finance

The World Economic Forum’s Closing the Investment Gap stresses the urgent need to mobilize finance for industrial decarbonization, particularly in aviation and steel, which together account for a quarter of global emissions. The paper highlights barriers including high costs, technology risks, and fragmented regulation. It proposes a three-pronged policy framework: generating sustained demand for green products, developing reliable and scalable supply chains, and unlocking finance through incentives and de-risking mechanisms. By aligning governments, industry, and financial institutions, the framework aims to accelerate net-zero transitions and secure climate and economic resilience.

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