Oxford Economics: net zero by 2050 a ‘$10.3trn opportunity’

Research by economics advisory firm Oxford Economics has found that a transition to net-zero emissions by 2050 would create new industries worth $10.3trn. The significant value of the new industries rests on three “pillars of opportunity”: the commercial prospect of disruption; new green markets; and productivity gains from climate mitigation. Citing the examples of companies such as Ikea and Carlsberg Group, the authors argue that competitive firms will be those that are able to optimise cost efficiency, retain talent, manage fossil fuel price shocks and adapt to changing consumer preferences. Additionally, the research expects electrical vehicle manufacturing, renewables, green finance and clean energy equipment to emerge as the leading sources of value creation. The report states: “Policymakers and investors too often conceive of the green transition from a cost perspective. However, the transition to a sustainable environment by 2050 also creates vast opportunities in the global economy.”