Barriers to net zero:how firms can make or break the green transition

Large firms have been committing to climate neutrality at a fast pace, but investment in cleaner technologies is much lower in smaller companies. What keeps organisations from embracing the green transition? Using data on more than 11,000 firms across 22 emerging markets, Ralph De Haas, Ralf Martin, Mirabelle Muûls, and Helena Schweiger find that both credit constraints and green management play a role. Their study reveals how financial crises can slow down the process of decarbonisation.