Already a Multi-Trillion-Dollar Market 2025

Cost-competitiveness of emission abatement solutions, by sector and technology FIGURE 3 More than 50% of emissions can be abated with positive business cases for asset owners today Global greenhouse gas mitigation required by 2050 to reach 1.5°C, split by sector and technology,1 pre-subsidy (% of net Gt CO2e p.a.) Power & heat Transport Industry Buildings Waste4 SequestrationAFOLU31% Solar photovoltaic & wind210% Passenger BEVs5% Light-duty BEVs 4% Heat electrification3% Bioenergy / other fuel shifts2% Hydrogen 5% Avoided deforestation 3% Bioenergy with CCUS, biochar3% Reforestation4% Agricultural practices 3% Energy efficiency / renovation2% Nuclear 2% Hydropower4% CCUS Heat pumps RES / bio-energy3 Biogas from MSW MSW recycling Direct air captureDietary shifts F-gas alternativesCCUS / hydrogen / ammonia Bioenergy Geothermal, solar thermal & marine Incineration Wastewater biogas5% Low-carbon fuels for trucks, aviation, shipping 4% Energy / material efficiency~5% Behaviour change ~20% Major cost disadvantage ~20% Minor cost disadvantage ~55% Cost- competitive in most situations or soon-to-be Notes: Cost competitiveness is defined in comparison to today’s higher-GHG reference, including capex and opex, and is measured from the perspective of the business case for an individual asset owner (i.e. does not present a full system view); AFOLU = agriculture, forestry and land use; BECCS = bioenergy with carbon capture and storage; BEV/FC = battery electric vehicle/fuel cell; CCUS = carbon capture, utilization and storage; DAC = direct air capture; EVs = electric vehicles; F-gas = fluorinated gas; MSW = municipal solid waste (including industrial); PV = photovoltaic; RES = renewable energy sources. 1. Annual emissions at projected 2050 level, current cost-competitiveness. 2. Storage reduces the cost-competitiveness of solar PV and wind relative to fossil generation, with the impact varying widely by market. 3. Renewable energy sources (RES) and bioenergy for heating only. 4. Excluding agricultural waste. Sources: see endnote.22Renewables constitute one of the biggest global greentech markets, but they are not alone. Outside of renewable power generation, the growth of renewables has accelerated electrification, which in turn has enabled many other technologies (e.g. heat pumps, electric mobility) to scale up. More are on the horizon: a further 20% of global emissions could be eliminated with mitigation technologies that come at a relatively minor cost disadvantage for asset owners. For instance, bioenergy is moderately more expensive than fossil fuels and can become cost-competitive in regions where regulation is favourable and with abundant local feedstocks.21 Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 13