According to a recent report by the International Energy Agency , and I quote: “most of the global reductions in CO2 emissions between now and 2030 in the net zero pathway come from technologies readily available today.
But in 2050, almost half the reductions come from technologies that are currently only at the demonstration or prototype phase.” Early on, these innovative technologies are often less competitive than fossil alternatives. This makes banks more hesitant to finance these higher risk activities. And innovative start-ups are often too small to attract capital market financing.