Opinion
Global funding, stronger policy incentives needed to realise net-zero emissions goals
Achieving a sustainable and carbon-neutral future is crucial for addressing the interconnected challenges of climate change, environmental degradation, social inequality, and economic instability
December 31, 2023 | 12:20 AM
A sustainable and carbon-neutral future is significant for several reasons, as it addresses critical environmental, social, and economic challenges facing the world today.But transitioning to a more sustainable and carbon-neutral future, $13.5tn in investments will be needed by 2050, particularly in the production, energy and transport sectors, according to a new World Economic Forum report.The ‘Net-Zero Industry Tracker 2023’, published in collaboration with Accenture, takes stock of progress towards net-zero emissions for eight industries – steel, cement, aluminium, ammonia, excluding other chemicals, oil and gas, aviation, shipping and trucking, which depend on fossil fuels for 90% of their energy demand and pose some of the most technological and capital-intensive decarbonisation challenges.The report outlines pathways to accelerate the decarbonisation of emission-intensive production, energy and transport industries. While the pathway to net zero in these sectors will differ based on unique sectoral and regional factors, investments in clean power, clean hydrogen and infrastructure for carbon capture, utilisation and storage (CCUS) will be needed to accelerate industrial decarbonisation across most sectors."Decarbonising these industrial and transport sectors, which emit 40% of global greenhouse gas emissions today, is essential to achieving net zero, especially as demand for industrial products and transport services will continue to be strong,” said Roberto Bocca, head of Centre for Energy and Materials, World Economic Forum. "Significant infrastructure investments are required, complemented by policies and stronger incentives so industries can switch to low-emission technologies while ensuring access to affordable and reliable resources critical for economic growth.”According to the report, the $13.5tn in investments is derived from average clean power generation costs of solar, off-shore and on-shore wind, nuclear and geothermal, electrolyser costs for clean hydrogen and carbon transport, as well as storage costs.The findings underscore the urgency for creating a robust enabling environment, including low-emissions technologies, infrastructure, demand for green products, policies and investments. In addition to increasing capital expenditures to decarbonise existing industrial and transport asset bases, further investment is needed to build a clean-energy infrastructure.The majority of the technologies needed to deliver net-zero emissions are expected to reach commercial maturity after 2030, highlighting the need for collaborative approaches to research, develop and scale them. This includes substituting legacy technologies with low-emission alternatives, increasing efficiency of processes and machinery, electrification and driving circularity."It is imperative that action is taken soon to both decarbonise and improve energy efficiency; otherwise, unabated fossil-fuel demand in the key industry sectors, which have grown 8% on average the past three years, will increase very significantly by 2050,” said Bocca."But industrial leaders can respond through new collaborative ways of working and innovating, for example within industrial clusters and by fostering best practices, sharing infrastructure in important areas like clean hydrogen and CCUS and building demand for lower-emissions products.”Achieving a sustainable and carbon-neutral future is crucial for addressing the interconnected challenges of climate change, environmental degradation, social inequality, and economic instability.Undoubtedly, it represents a commitment to responsible stewardship of the planet and the well-being of current and future generations.
December 31, 2023 | 12:20 AM