WEF – Bridging the Gap: How to Finance the Net Zero Transition

The report by WEF "Bridging the Gap: How to Finance the Net Zero Transition" explores the funding challenges in achieving net-zero goals. This white paper addresses the climate finance gap, examining its causes such as policy fragmentation and the diverse impacts on developed and developing nations. It discusses strategic policy levers and market-based instruments needed to mobilize transition finance effectively. The report highlights hybrid mechanisms, including initiatives like the EU Green Deal and the US Inflation Reduction Act, and reviews their roles in addressing the funding gap. It emphasizes the need for innovative financial instruments to support low-carbon projects and calls for coherence and clarity in policy design to facilitate capital flow into climate initiatives.