The World Bank has revealed that Artificial Intelligence could help reduce the capital requirements for transitioning to a net-zero economy by as much as $2tn. In its latest “Net-Zero Industry Tracker 2024 Edition” report, the bank stated that AI, particularly generative AI, could improve capital efficiency by 5-7 per cent, offering substantial savings for hard-to-abate sectors like cement, steel, and heavy manufacturing. The international lender report underscores the need for an estimated $30tn in additional capital investment by 2050 to achieve global net-zero emissions targets.
However, AI’s role in reducing capital requirements could be a game-changer. “The potential of AI to reduce capital needs by $1.5 trillion to $2tn is a significant development for sectors that are crucial to the global economy but are also challenging to decarbonise,” the report highlighted.
AI-driven innovations, such as energy efficiency improvements, asset management, and accelerating research and development, were identified as key levers for reducing costs in industries that face both high operational expenses and limited commercially viable emissions reduction technologies. Related News ECOWAS unveils $365m initiative to empower women, girls FG, World Bank allocate $600m for rural roads Fashion company launches measurement app “The integration of AI can lower the costs of transitioning to low-carbon alternatives, providing a much-needed boost for sectors struggling to absorb the s.
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