Introduction
Citi GPS posits that addressing the challenge of decarbonisation demands diverse pathways, some possibly requiring public funding. Yet, they argue that a substantial portion of the required funding can be sourced by transforming businesses and banks into a genuine green finance system. This involves mainstreaming products and services essential for emissions reduction.

Net zero pathways
Citi GPS stresses the urgency of industry-wide action to achieve a net-zero emissions world. Various industries will need distinct approaches – some necessitating demand reduction, others requiring new energy sources or alterations to manufacturing processes. However, the report underscores that beyond technological shifts, financial incentives are crucial for the transition. Governments and policymakers hold a pivotal role in fostering an environment conducive to green development.

How markets are evolving
Examining the transition to a greener economy, Citi GPS highlights the need for substantial investment in sustainable infrastructure. The report explores economic, policy, and commodities market trends influencing decarbonisation. Chapters 5-11 delve into carbon pricing, power sector changes, carbon capture, sustainable transportation, metals, and sustainable agriculture. ESG issues related to these sectors, such as cleaner production methods and sustainable transportation infrastructure, are also emphasized.

Green momentum in the investor community
Citi GPS observes a growing trend among investors, incorporating ESG considerations into their decision-making processes. Institutional investors are identified as crucial drivers for the transition to a green economy. Sustainable investing is predicted to become a mainstream aspect of financial decision-making. Chapters 12 and 13 discuss how ESG is transforming investment management and offer perspectives from Citi Business Advisory Services and Citi Private Bank. The report emphasizes the need for tailored sustainable investment processes, focusing on individual client needs.

Bridging the gap between green investment and investors
To achieve net zero, Citi GPS suggests investors move beyond broad approaches and adopt sophisticated solutions incorporating ESG across asset classes. Although ESG assets under management were $30.7 trillion in 2018, the underlying techniques are deemed relatively simplistic. The report identifies negative screening, ESG integration, and stewardship as top strategies. Despite having the smallest AUM, direct engagement strategies, like stewardship and impact funds, are gaining traction. Citi GPS highlights the significance of new data in understanding and separating ESG risks. The report advocates for a shift towards measuring specific E-, S-, and G-related KPIs for precise capital allocation, fostering a new dialogue for sustainable corporate behavior.

Recommendations

To achieve a net-zero emissions world, Citi GPS recommends the following:

• Policymakers should enact policies that align with a net-zero emissions world, which should create a conducive environment for green development and growth.
• Companies should transition to cleaner and more efficient production methods to reduce their carbon footprint.
  Investors should develop more sophisticated solutions that incorporate ESG across asset classes to offer a wider range of investment opportunities.
• Investing needs to focus on specific ESG considerations to align with a net-zero emissions goal, and investment techniques need to yield more discrete results.

In conclusion, Citi GPS suggests that while transitioning to a net-zero emissions world is a complex process, it is achievable. Achieving this will require a systemic approach and significant investment in sustainable infrastructure and energy-efficient production. Policymakers, investors, and companies all have pivotal roles to play in enabling this transition and will need to work together to achieve this vision.