To reach net-zero emissions by 2050, changes should be accomplished with urgency. Deloitte’s new report Energy Transition: The Road to Scale explores a potential roadmap for the future, outlining strategic initiatives and cross-sector collaboration. The journey to net zero needs to happen at roughly 4x the speed of other major historical transformations like the Industrial Revolution.
According to the study, acting now to capture emissions would be dramatically more effective than postponing the process: capturing 1 million metric tonnes per annum (mmtpa) of carbon by 2050 is equivalent to capturing only 0.35 mmtpa today, the analysis says. Furthermore, each year of delay in reducing carbon emissions can result in as much as $150 billion in incremental costs.
Deloitte also highlights that despite a slowdown in the economy, there was a 1.1% rise in global energy related carbon dioxide emissions in 2023 compared to 2022, as reported by the International Energy Agency. A new way of doing business and of taking action through cross-sector collaboration and collective action could be key to driving global impact.
The authors conclude that the journey to net-zero emissions should involve careful planning and coordination among industries to realize the highest impact in a relatively short timeframe.
“The transition to net-zero emissions is not just an environmental imperative, but also an opportunity to drive economic growth and societal progress. Achieving net-zero goals by 2050 does not offer much flexibility. We must act with urgency, and collaborate across industries, to help ensure a successful energy transition — one where neither the financial nor environmental costs are too high for us to bear on a global scale,” said Stanley Porter, global energy, resources and industrials leader at Deloitte Global.
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Source: Deloitte Insights