Rate of Decarbonization Must Increase Five Times to Meet Climate Goal

The rate of decarbonization required to achieve the 1.5°C objective set out in the Paris Agreement is five times as challenging, according to PwC. A decarbonization rate of 12.9%, more than five times greater than what was achieved over the last year (2.5%) and eight times faster than the global average over the course of the 21st century, is required to halve global emissions by 2030 and to reach net zero by mid-century.

Global energy demand fell by 4.3% in 2020, leading to a reduction in energy related emissions of 5.6% (from 2019 levels) as well as a decline in total global emissions.  As a result, the rate of global decarbonization (reduction in carbon intensity: energy-related CO2 emissions per dollar of GDP) reached 2.5%, but this was just a slight increase from the 2019 rate of 2.4%.  However, the emission reduction resulting from this energy demand anomaly still falls way short of the progress needed to keep the temperature rise below 1.5°C.

"Over the past year, business and government have significantly stepped up their ambition to act on climate change.  But despite the ambition, the emissions gap continues to widen. Very simply, the action taken to date has not been enough to meet the scale and urgency of the climate crisis facing the world.  All sectors of the economy will need to transform to deliver net zero," said Emma Cox, Global Climate Leader at PwC UK.

Even with the global economic slowdown in 2020, no country in G20 was able to achieve the 12.9% rate of decarbonization required to limit warming to 1.5°C.  Only a handful of countries have ever successfully achieved double-digit rates of decarbonization.  Although the majority of the G20 have set ambitious climate targets, these have yet to translate into clear policy actions that will deliver the changes needed.

"The private sector has a vital role to play in delivering positive climate action. Delivering net zero by mid-century will require collaboration between sectors and across industry, however businesses can’t go it alone. To deliver climate action at the scale required, the private sector needs clear and consistent signals from government that incentivize corporate climate action. Government and business leaders must heed what the climate science is telling us we need higher ambition and an acceleration of action to keep 1.5°C in striking distance. The window of opportunity is narrow so it’s imperative we take more decisive action now," commented Ian Milborrow, Sustainability and Climate Change Partner at PwC UK.