Business leaders have warned that without bold governmental policy, the next wave of large-scale investments in the net-zero transition are at risk.

Whilst 91 per cent of executives see the transition to a green economy as an investment opportunity, only 1 per cent of businesses believe the transition is on track.

The warning comes in a new report by the World Business Council for Sustainable Development (WBCSD) in partnership with Bain & Company, the Breakthrough Agenda and the Marrakech Partnership. The report, based on a survey of 250 executives of leading businesses worldwide with a combined market capitalisation of more than $2tr, emphasises that achieving plans to halve emissions by 2030 and meet the 1.5C climate target hinges on private sector investment.

The report shows that businesses have been investing substantially in the net-zero transition. Three-quarters (74 per cent) of businesses surveyed have increased their investments in the net-zero transition over the past three years, motivated by growing commercial opportunities in their industry, with one in three (35 per cent) committing more than half of their capital investment.

However, two thirds (66 per cent) of business leaders identify the lack of a strong investment case and slow scale-up of infrastructure as the most urgent barriers to accelerate large-scale investment. Businesses cite that macroeconomic challenges are delaying project development, slow permitting processes, uncertain revenue models, limited low-carbon fuel supply, long grid interconnection queues and slow roll-out of charging networks; all putting the next set of investments at risk.

According to the report, businesses are frustrated that current policy and market structures fail to reward low-carbon investments, and in difficult to decarbonise sectors highlight the need to move beyond a reliance on voluntary demand which is not increasing at the pace needed for sectors such as steel, cement, aviation, shipping and chemicals.

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