Framework for industry’s net-zero transition: developing financing solutions in emerging and developing economies
The manufacturing industry is a major source of global carbon dioxide emissions. Industrial production will continue to shift to emerging and developing economies. New investments are needed in low-carbon technologies to align industry’s growth with countries’ net-zero emission targets. In order to reduce the risks associated with the high cost and low maturity of the many needed low-carbon technologies, scaling up finance from both public and private financial sources will be crucial. OECD’s new “Framework for industry’s net-zero transition” is a step-by-step approach to assist emerging and developing economies in designing solutions for financing and to improve the enabling conditions that can accelerate industry’s transition. Outcomes of the Framework implementation in emerging and developing economies will contribute to the broader climate and finance policies and it can help to facilitate international co-operation for transition at scale.