WEBVTT

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(slow tense music)

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<v ->We hear a lot about the cost of the energy transition,</v>

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how challenging it's gonna be,

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but it's an opportunity too, right?

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<v ->Yeah, absolutely.</v>

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I mean, the green transition

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is a massive economic opportunity for countries

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to capture growth, to create jobs, and to build resilience

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in their energy systems and industries.

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We estimate that the size of the green products

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and services today is about 2 trillion,

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but it's gonna grow more than fivefold

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to about 11 trillion by 2040.

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This represents a market for green products and services,

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for example, critical minerals, like cobalt and copper.

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We're talking clean technologies,

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like wind turbines and batteries,

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green industrial materials, like metals and plastics,

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and green services like financial services,

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IT, and transportation.

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And I think what we see is that voters

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in countries around the world are open

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to climate action when it is framed

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about jobs, growth, and security.

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<v ->Ed, how are you seeing that from a policy framework side?</v>

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<v ->Well, a lot of governments are going after this,</v>

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but in practice, policymakers are facing

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some quite difficult trade-offs when they get into it,

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'cause they need to decide when are they gonna pick winners

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and when are they gonna trust the market.

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Many policymakers, indeed, many taxpayers,

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are quite nervous about governments picking winners

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in terms of international champions, but also, reality,

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we've seen the private sector does need some help

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to scale up the kind of pace

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that we need for the green transition.

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You need to find a balance there.

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And lastly, when they are making direct investments

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with those precious taxpayer dollars,

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that they're really professionalizing

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that part of the process,

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that's when you tend to see better results coming out.

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And so, governments are having to think

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really carefully about where they wanna play,

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where they've got some real advantage,

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and where it may fit their other strategic objectives.

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<v ->There are examples of economy.</v>

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I think Japan and Korea have chosen to really double down

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on fuel cell technology and batteries, for example,

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and are happy to not try to build industrial capacity

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in low-cost solar manufacturing.

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And you've gotta understand where you're gonna put policies

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that give certainty to the market,

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but also give flexibility for change.

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And you've gotta have a pulse on where is global climate

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and industrial policy changing,

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'cause it's very dynamic out there.

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(uplifting music ends)