A transformation is underway as investor demands, changing consumer behaviour, cheaper technologies and new regulations become powerful drivers in the shift to a Circular, Lean, Inclusive and Clean (CLIC®) economy. This opportunity is re-shaping risk and return across all sectors. And in order to meet a 2℃ scenario, infrastructure investment will need to increase to USD 5.5 trillion per year until 2030.
We believe there will be major systems transformations that will be key to achieving a CLIC® economic model in Energy, Land and Oceans, Materials and Carbon.
Energy: The energy needs of entire industries will be electrified, as we move from a 20% electricity supply to a 70% supply by 2050. Electricity production from renewable or other zero-carbon sources will be ramped up, fossil fuel power plants will be phased out.
Land and Oceans: Food systems will transform to make more with less. Precision and regenerative farming will increase yields while boosting soil health, consumption will shift towards calorie sources that require less land and freshwater use, and distribution innovations will cut food waste. Pressure on agricultural land and forests will lift, allowing millions of hectares to be restored to nature.
Materials: Less will be extracted, more will be recycled and re-used. Through innovative new materials, more efficient recycling, low carbon secondary materials and service-based business models we will break the link between production and resource extraction.
Carbon: Carbon will be priced efficiently, and carbon markets will become more robust and more deeply embedded across sectors. Carbon credit schemes that fail to demonstrate their promised real-world impacts will fall from favour. Predictably increasing prices will incentivise the shift to low carbon technologies.
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