The Need For Speed: Net-Zero Outcomes

This report introduces the Net-Zero Transition Conditions Framework (NZTCF), an analytical tool designed to assess the speed of the global net-zero transition across five systemic economic and policy drivers.

Key Takeaways

• 1.The net-zero transition is transitioning from a 'what/how' problem to an 'execution speed' problem.
• 2.HSBC introduces the 'Net-Zero Transition Conditions Framework' (NZTCF) based on five interdependent drivers.
• 3.Economic competitiveness is increasingly overtaking policy as the primary determinant of transition speed.

Table of Contents

• Executive Summary
• Beyond the CO₂ pathway: why transition speed matters
• The blind spot in existing frameworks
• Policy helps, but economics increasingly matter more
• Introducing the Net-Zero Transition Conditions Framework
• Transition speed drivers
• Delivery capacity
• External pressure and market pull
• Bringing it together: reading transition conditions as a system
• Conclusion