Growing Race To Net Zero
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Actors that cover nearly 25% of global CO2 emissions and over 50% of GDP have now pledged to reach net-zero emissions by 2050 at the latest. This includes close to 1,500 businesses and 500 individual cities.
Currently, low-carbon sources make up only 15% of total energy demand, and we see this growing to between 40% and 70% by 2050 – the most rapid change in mix for a century, regardless of scenario. Net-zero pledges need pragmatic solutions, and the emphasis over the coming five years is likely to switch from pledges to action. We expect this to involve material changes in the behavior and operations of both businesses and consumers.
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Solutions to decarbonization will evolve at a different rate and have different scales of contribution to decarbonization.
Transforming the energy system is not without cost. Some forms of low-carbon energy, such as solar and wind electricity generation, are already competitive with fossil-fuel alternatives. In part, this is why we expect such a rapid growth in electrification.
We see this growing to between 40%-70% by 2050
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