Global Pathways to Low-Carbon Economy: Trends, Challenges, and Opportunities

Document Type : Original Article

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Economic Research Department at Asharqia Chamber, Saudi Arabia

Abstract

This study investigates the global transition toward a low-carbon economy, with a particular focus on the financing gap required to support the decarbonization of vital economic sectors. Using a qualitative methodology, the study used thematic and document analyses of scholarly literature, international case studies, and policy reports to evaluate strategies and challenges globally. The scope of this study covers developed and developing countries, while the temporal boundary starts from the beginning of the 2000s to projections of 2050. This study examines how nations are moving toward net-zero emissions and the financial obstacles they encounter. The study shows that despite the increasing importance of the global climate, financial flows are still inefficient and not distributed equally. According to the study’s findings, implementing strategies to reduce the financing gap, increasing international cooperation, supporting blended finance models, and implementing adaptive policies are the only ways to effectively reach a low-carbon economy. Future studies should design dynamic models, which should also focus on region-specific investment frameworks and impact evaluation tools to align capital flows with the rising demand for climate action more efficiently.

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