A new report from the OECD and Climate Club highlights a massive shortfall in funding for cleaning up heavy industry in emerging markets. While the IEA estimates that 500 billion USD is needed over the next decade for near-zero emission steel and cement, actual public finance for these sectors has remained critically low. Investment is slowly shifting from simple energy efficiency toward breakthrough technologies like clean hydrogen and carbon capture. However, these projects remain high-risk and expensive, requiring more concessional finance and blended funding tools to attract private capital and meet global net-zero targets.
