Tag Archives: climate

How Are The Leading Countries Faring On The Path To Net Zero?

At-a-Glance

In the run-up to the COP27 climate conference in Egypt, more than 80 countries announced pledges to reach net-zero emissions around mid-century. Most Organization for Economic Cooperation and Development (OECD) nations aim to reach net zero by 2050, while developing countries plan to get there a decade or two later. China and India aim to reach net zero by 2060 and 2070, respectively. For more, read How Are The Leading Countries Faring On The Path To Net Zero?

Key Takeaways

  • Wood Mackenzie’s inaugural Global Net Zero Pledges Case Scenario finds that energy-related emissions in the pledges case scenario decline 8% from 2019 levels by 2030 and by 80% by 2050. Global net zero arrives around 2060, taking cumulative emissions to around 750 billion tons of CO2.
  • Compared with the base case, power demand expands by about 40% under the pledges scenario, with green hydrogen the single largest source of incremental growth by 2050.
  • Around 90% of incremental capacity comes from wind, solar, and energy storage. 
  • Low-carbon dispatchable generation becomes critical due to higher wind and solar penetration. Markets shift to investing in ammonia co-firing, hydrogen combustion, and carbon capture and storage to provide flexible generation.
  • Hydrogen production reaches 500 to 630 million tons per annum under the pledges and net-zero scenarios, respectively.

Path to 100% Perspective

The urgency of the climate crisis demands that the power sector pioneers the rapid decarbonization of economies worldwide. According to the International Energy Agency’s 2050 roadmap, there is a viable pathway to a global net zero emissions energy sector by 2050 – but it’s narrow and calls for a transformation in how energy is produced, transported, stored, and used globally. Countries must front-load the transition toward net zero, taking major steps in the next few years to tackle the climate crisis.

Fortunately, power generation is undergoing a rapid transformation toward cleaner energy sources due to huge additions of low-cost renewable electricity. There is also a wide array of potential future fuels, including hydrogen, that can help to phase out fossil fuels in favor of renewable energy. Adding more flexible gas generation that can convert to sustainable fuels and closing inflexible fossil assets will also be key in the final push to decarbonize energy systems.

Climate Progress Is Happening, Just Not Fast Enough

At-a-Glance

The COP27 conference was a win for the planet, but more work – and investment – is crucial. For more, read Climate Progress Is Happening, Just Not Fast Enough.

Key Takeaways

  • An important victory achieved at COP27 was the growing acceptance among nations that the battle against climate change requires more robust mobilization of private capital and a growing willingness to act.
  • At COP27, a group of countries led by the U.S. and Japan announced a $20 billion financing package to support Indonesia’s plan to shift from coal to renewables.
  • This agreement creates a model for assisting other nations that are heavily dependent on coal to transition to clean energy.
  • Also at COP27, Bloomberg and Bloomberg Philanthropies announced various efforts to increase private-sector investment in clean energy, particularly in the developing world. This includes a data portal that will give companies the information they need to meet their net-zero pledges.

Path to 100% Perspective

If there’s one lesson to be drawn from COP27, it is this: no one person or company can change the world overnight. Big, meaningful change is something we all need to be invested in and committed to doing together. While governments can make ambitious commitments to decarbonize and transition to a 100% clean energy future, we need the private sector on board and engaged to meet net-zero goals. Private sector allies have the technologies and know-how that will enable us to accelerate the addition of renewable energy sources and phase out fossil fuels for good. Decarbonization is not just possible – it is technically and commercially feasible with technologies that are already available at scale.