Trend two
Green giant government action
As scientific warnings about the adverse impacts of climate change become more widespread, governments and regulators around the world are taking action to reduce carbon emissions. Although this is creating the momentum for increasingly stringent environmental regulation, it has also led to historic investments in incentives to support green business transformation.
A Green Deal Industrial Plan for Europe: The EU recently expanded upon its Green Deal with the introduction of the Green Deal Industrial Plan1 to support its goal of reaching net zero carbon emissions by 2050. In addition to existing incentives, it creates €225 billion ($245 billion) in new EU funding for loans as well as simplified rules, fast-track permitting, skills training and a push to expand free trade agreements with key allies.2
Historic US incentives signed into law: The Inflation Reduction Act of 2022 includes $369 million in incentives for technology to fight climate change, the largest climate change bill in US history. Six months after it was signed into law, it is estimated the legislation helped spur more than $90 billion in new investments and 100,000 new clean energy jobs.3
But China still leads global green tech: China still leads the world in energy transition investment, with $546 billion (nearly half the global total) spent in 2022. The US was a distant second with investment totalling $141 billion as investment in the EU reached a total of $180 billion.4
1. European Commission 2. Reuters 3. World Economic Forum 4. Bloomberg
Employers who do not capitalise on these robust incentives may lose top talent to competitors
Local incentives for employee training can help cost-effectively close green skills gaps
Workers around the world, particularly Gen Z, view sustainable employers more favourably
Sincere engagement is critical because “greenwashing” can damage your employer brand.
