Our report introduces an investor perspective on avoided emissions—the expected emissions that a low-carbon product, technology, or service prevents or saves compared to a higher-carbon product, technology, or service it replaces in the market.
With climate change affecting global supply chains, consumer behavior, and regulatory landscapes, this guide lays out how investors can use avoided emissions to identify solutions that address climate risks and investment opportunities from the shift to a low-carbon economy. It walks through the steps to calculate avoided emissions, providing questions investors can ask along the way to use to better understand the underlying assumptions used in the calculation.
The transition to the clean economy is a massive investment opportunity, requiring an estimated $125 to $275 trillion by 2050, driving demand for emerging industries, technologies, products, and services. This demand is being catalyzed by key government incentives including the Inflation Reduction Act that help de-risk these climate finance opportunities and make them more attractive to private capital.