On track to net-zero: overcoming the economic hurdles of decarbonisation

Decarbonisation is the great transformation of our time, with comprehensive impact on growth, inflation, public finance, competition etc. Thanks to the steps already taken, net-zero by 2050 has become an achievable goal. To stay on that track, countries must expend collective effort, using three main policy mechanisms: disinvestment from fossil fuels, acceleration of the technological advancement in using renewable energy sources and demand reduction. Depending on the choice and deployment of the mechanisms, countries will experience inevitable consequences on growth and inflation, among others. The transition will be expensive.

At this event, panellists identified necessary policies to assuage the economic cost of the green transition by discussing public and private investments, demand reduction instruments and other tools.