KPMG: Achieving net zero emissions by 2050 is at risk
KPMG published the Net Zero Readiness Index in 2021,1 a few weeks before the COP26 UN climate change conference in Glasgow. The event resulted in 153 countries putting forward new emissions targets for 2030 and more than 90 percent of world economic output and global emissions being covered by net zero agreements. Attempts to phase out the use of coal, the single biggest contributor to climate change, failed with weaker language to ‘phase down’ its use in the final agreement. COP26’s chairman Alok Sharma said that the conference had kept alive the hope of keeping global temperature increases within 1.5 degrees Celsius this century but added “its pulse is weak.”
The last two years have seen many countries taking steps in the right direction towards net zero, even if most have a long way to go. Some have announced significant new policies to support decarbonization, including the REPowerEU in Europe. Emissions trading schemes are expanding in several countries and the EU is phasing in its Carbon Border Adjustment Mechanism, an idea that other countries look likely to adopt. The bloc is also introducing regulations to block the import of products linked to deforestation, showing how some jurisdictions plan to go further faster to meet net zero pledges.
Next year will see companies in many countries starting to report on their climate change risks and plans.
Renewable energy production continues to expand rapidly around the world, investment is rising fast and there are indications that it is becoming harder to raise funding for some fossil fuel projects. Renewable production and the reshaped electricity grids it requires will inevitably impact on some local environments, their biodiversity and communities. We are going to see more conflicts between the local and the global, but if we want to reach net zero while keeping the lights on, we have to build new power infrastructure somewhere.
These issues are among those discussed in this Net Zero Readiness Report. It explores the readiness of 24 countries based on interviews with local KPMG specialists. This report also examines global trends in sectors that are key to tackling climate change: the economy, electricity, transport, manufacturing, buildings, infrastructure, oil and gas, agriculture and the blue economy.
Across these countries and sectors we can see plenty of examples of progress on decarbonization including growth in electric vehicle sales, although from a low level in most countries. On behalf of all the KPMG specialists involved, we hope this report can contribute to helping organizations quicken their pace on the long walk towards net zero.
Related news
The secret to successful digital transformation – according to KPMG
Companies continue to watch their competitors’ moves with a wary…
Read more >Nothing is certain in the world, except taxes – or are they not even certain anymore?
Coping with a dynamic and often unpredictable economic environment, effectively…
Read more >KPMG: Hungarians are optimistic, worried and excited at the same time when it comes to AI
According to a joint international study by KPMG and the…
Read more >Related news
Viktor Orbán: we will introduce margin reduction for new products as well, if necessary
The margin regulation must be maintained because people must be…
Read more >Who won and who lost in 2024? – Spectacular differences in results in food retail
The balance of the 2024 business year in the food…
Read more >The domestic gin market is on the rise – According to SPAR, customers are increasingly aware and open to Hungarian brands
Gin sales have grown spectacularly in Hungarian retail in recent…
Read more >