Funding gap threatens net-zero targets

There’s probably never been greater awareness about the dangers of climate change. A global 2021 survey by the United Nations found that 64% of people believe climate change is a global emergency.

Given the widespread consensus that we need to act on climate change, you might think that initiatives to save our planet are getting all the funding they need. Well, you’d be wrong.

As the graphic by BloombergNEF shows, there is nowhere near enough low-carbon investment for the world to reach net zero emissions by 2050 – one of the key goals of the Paris Agreement.

See also: How Singapore’s businesses can walk their talk on climate change

While there are some innovative companies rolling out scalable climate solutions, as outlined in the BloombergNEF report, the funding gap is stark.

According to the chart, low-carbon investment must soar beyond US$4 trillion by 2025 for the world to stay on track to meet net-zero goals. The figure currently stands below US$1 trillion. No wonder the theme for Earth Day this year was “Invest in our planet.”