If the world is to reach net-zero emissions by 2050 unprecedented public and private sector partnerships will be required to ensure the projected US $4.3-$5 trillion per year is invested across low carbon and new energy sources in developed and developing nations.

The transition will also change the energy sector talent landscape. According to the IEA’s Net Zero by 2050 report, the energy transition has the potential to create 14 million new climate technology jobs, reposition nearly five million workers from fossil fuel roles and spark skills training for some 30 million employees. This also opens opportunities for economic development in developing nations as they become active participants in and architects of the new energy system.

Heavy industries such as steel, cement, transportation and chemicals pose the biggest decarbonisation challenge, being responsible for nearly 40% of global carbon dioxide (CO₂) emissions and given their critical role in the global economy. Solutions will necessitate new partnerships and alliances from energy providers to end-users to overcome the bottlenecks of investment, technology and skilled resources. The scale-up and deployment of clean technologies for heavy-emitting industries will be in part dependent on the involvement of commercial banks, investment banks, insurance companies and private investors. In addition, it is critical to understand how to incentivise customers to buy more sustainable products with a premium that will indirectly help finance the necessary investments for the transition.

In 2023, cumulative global investment in clean tech surpassed US $1 trillion, highlighting its pivotal role in managing near-term challenges. The influence of digital technology in driving efficiency gains and safety is well established and is now extending into critical emissions reduction. The advent of artificial intelligence (AI) and its various subsets, from machine learning to large language models, will bring further advances in how the industry decarbonises and achieves net-zero ambitions, while also potentially creating new challenges to be addressed.