Policymakers play a critical role in creating transition pressure and fostering scalable innovations. Ambition in national climate targets is needed as well, as most EU countries exceed a 2°C-degree warming path, based on MSCI’s analysis of countries’ emissions trajectories relative to their fair-share carbon budget. But ambition translates to investment if it’s tied to sector-specific roadmaps that guide companies while enabling investors to better assess transition risks and opportunities.