Additional annual investments of $2.8-trillion are needed in low-carbon technologies and infrastructure to help the world meet net-zero emissions goals, according to analysts at Goldman Sachs Group.
A global carbon price, continued focus on sustainability in the capital markets and improved emissions disclosures from consumer companies are also vital, said Michele Della Vigna, head of natural resources research in Europe, Middle East and Africa in Goldman’s global investment-research group.
“Until now, global governments have failed to find the right framework,” he said during a webinar presentation Wednesday.
Vigna added that natural gas is an important transition fuel from coal to meet net-zero goals. The Ukraine war “has bought back a more positive view of natural gas,” he said. “It’s important to manage carbon emissions down in a way that’s affordable.”
Publicly traded companies, especially commodity producers and software and semiconductor manufacturers, need to allocate more to green capital expenditure, said Brian Singer, global head of GS SUSTAIN in the bank’s investment-research group.
“We see significant opportunities for public companies to invest,” he said. “They have spare capacity to spend $1-trillion extra in capex without straining their balance sheets.”