Clean tech moves between 2,500 and 3 trillion euros globally. At the moment, most of these technologies are still far more expensive than their fossil alternatives, as shown by the recent study by the World Economic Forum and BCG "Winning in Green Markets: Scaling Products for a Net Zero World". While pioneering green markets involves taking a risk, it is likely to pay off as untapped markets emerge and are willing to pay more for sustainable products.
To meet the goals of the Paris agreement, a major shift to non-fossil technologies is necessary. As demand for green materials is expected to surpass supply, companies that take a leading role in developing and marketing green offerings will likely benefit.
This report, written in collaboration with Boston Consulting Group, demonstrates how green market leaders can thrive by taking an early market position and investing in green technologies, even if they currently come at a cost premium. Consumers are increasingly willing to pay a "green premium" for sustainable products, and early adopters in both upstream and downstream parts of key value chains are already capturing price premiums. In order to succeed in green markets, companies should design a green target portfolio, shape their value proposition, identify target segments, create a green pricing strategy and work to unlock scaling barriers.
Estimates by the United Nations Intergovernmental Panel on Climate Change (IPCC) indicate that if green products increase costs by 50% but, at the same time, up to 80% of consumers say they are ready to spend more to preserve the environment.