Global investment of $2.7tn is required annually to reach net zero emissions by 2050 and prevent temperatures rising above 1.5 degrees Celsius, according to a report by consultancy firm Wood Mackenzie. Scientists have warned that maintaining temperature increases below this level is crucial in avoiding catastrophic consequences from climate change. Governments worldwide have committed to lowering emissions to net zero by mid-century to assist in achieving this.
The report also highlighted the lack of progress made by most countries in achieving emission targets by 2030, not to mention 2050. Net zero emissions involve reducing releases as much as possible, with remaining emissions offset by re-absorption via forests and oceans.
However, governments’ current pledges would not be able to stop global temperatures from rising above 1.5C. The United Nations suggests this increase could reach 2.5C by 2050. The report also stated that $1.9tn annual investment is needed for the energy sector to decarbonise, a figure that needs to rise by 150% to $2.7tn to limit global warming to 1.5C. Most of this investment is needed in the power and infrastructure sectors.
Finally, the document suggested renewables such as wind and solar power will need to become the main global power supply. This will aid the electrification of transport and the manufacture of green hydrogen. Oil and gas will continue to be important in the transition to a low-carbon future.
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https://www.reuters.com/sustainability/climate-energy/world-needs-27-trillion-annually-net-zero-emissions-by-2050-wood-mackenzie-2023-09-14/
