Winning in Green Markets: Scaling Products for a Net Zero World
Summary
The report argues that while many green technologies currently carry a cost premium, early movers can secure a competitive advantage by targeting a growing segment of consumers and companies willing to pay a 'green premium'. It highlights a significant 'sustainability scarcity' risk by 2030, where demand for green materials—particularly plastics and chemicals—is projected to outpace supply due to a gap between downstream decarbonization commitments and upstream production capacity. To succeed, the authors recommend a 'green go-to-market' strategy involving the design of low-carbon portfolios, value-based pricing, and deep value-chain partnerships to de-risk investments and secure supply.
Key insights
- Many non-fossil alternatives currently carry a cost premium, with some industrial sector technologies costing 50% or more than their fossil counterparts.
- Consumer willingness to pay for sustainability is growing, with a median price premium of 36% observed across 27 of 36 analyzed US consumer packaged goods categories.
- There is a significant gap between downstream companies with science-based value chain targets and the upstream players capable of supplying green materials; in some cases, this market share gap exceeds 20 percentage points.
- Green plastics and chemicals are projected to face the highest scarcity risk by 2030, as planned production capacity lags behind expected demand from sectors like consumer-packaged goods.
- The risk of scarcity for green steel by 2030 is lower than for plastics or chemicals because many producers, especially in Europe, have announced significant capacity increases.
- Government policies are actively reducing green premiums, such as the US Inflation Reduction Act (IRA) lowering hydrogen costs and the EU's Emission Trading Scheme (ETS) increasing the cost of fossil technologies.
- To commercialize sustainability, companies should adopt a five-step 'green go-to-market' approach: designing a green target portfolio, shaping a value proposition, engaging early adopters, creating a green pricing strategy, and developing the market environment.
- Upstream companies can escape the 'commodity trap' by shifting from cost-based competition to value-based pricing and partnerships in undersupplied green markets.
Cite the original document
- APA
- World Economic Forum (2023). Winning in Green Markets: Scaling Products for a Net Zero World. https://www3.weforum.org/docs/WEF_Winning_in_Green_Markets_2023.pdf
- Chicago
- World Economic Forum. Winning in Green Markets: Scaling Products for a Net Zero World. 2023. https://www3.weforum.org/docs/WEF_Winning_in_Green_Markets_2023.pdf.
- Wikipedia
- {{cite report |author=World Economic Forum |title=Winning in Green Markets: Scaling Products for a Net Zero World |date=January 2023 |url=https://www3.weforum.org/docs/WEF_Winning_in_Green_Markets_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{worldeconomicforum2023winning, author = {{World Economic Forum}}, title = {{Winning in Green Markets: Scaling Products for a Net Zero World}}, institution = {World Economic Forum}, year = {2023}, month = jan, url = {https://www3.weforum.org/docs/WEF_Winning_in_Green_Markets_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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