Climate technologies, which combat climate change through reduced emissions, are critical to company-level decarbonization and reaching global net zero. They also hold enormous potential as new sources of economic opportunity. Low-carbon hydrogen alone is estimated to cut emissions by as much as three to five gigatons per year by 2050 (about 8% of global greenhouse gas emissions), creating a $3 trillion to $4 trillion global market.
With recent legislative changes, the rules of the game have just changed, further unlocking this massive market opportunity. New U.S. legislation in particular is driving major capacity increases and cost reductions with important business implications. The Inflation Reduction Act (IRA), the Infrastructure Investment and Jobs Act (IIJA), and the CHIPS and Science Act are decreasing the cost premium of these technologies through incentives. Global responses to the IRA are under consideration in major jurisdictions such as the European Union (EU).
