KPMG report calls for much greater focus on net zero transformation
A new report from professional services firm KPMG says global transformative change on net zero is “hamstrung” by significant barriers including global public debt, domestic tensions, increased opposition to decarbonization plans, and the need to guarantee energy supply.
KPMG’s 2023 Net Zero Readiness Report concludes that despite incremental momentum and specific successes such as the scaling up of low-carbon energy production from some of the world’s largest emitters, including the US, China, Brazil, Canada and the EU, progress is constrained by a backlash over the cost of decarbonisation and conflict over its domestic impact.
Through conversations with national climate change experts in 24 markets and across six economic sectors, the report highlights those that are leading the charge in their progress towards net zero, and those where it is taking place more slowly.
The report cites the significant growth in the sales of EVs as a global success story in how rapidly some sectors can decarbonise. However, within the international aviation and shipping industries, the pace of change is considerably slower.
In fast-growing economies, rapidly increasing energy demand is triggering investment in both low carbon and fossil fuel generation. And on an individual country level, meaningful progress is hindered by opposition to measures that are perceived to have a considerable cost to people’s livelihoods.
The report also identifies that in certain markets and sectors, the impact of low carbon projects on local wildlife, biodiversity and communities is triggering a rise in “green on green” conflicts, causing clashes between projects and the local environment.
Mike Hayes, KPMG International’s Global Head of Climate Change & Decarbonization said, “Governments, businesses, and society should continue to pursue action to address climate change. Further divisions between local communities and global interests are to be expected, but if we are to truly make meaningful strides towards net zero, at the necessary pace, while ensuring a stable energy supply, much greater focus is required. This includes in areas such as the policy environment, technical innovation, and educating society about the transformational changes that are required in our consumption and investment behaviours.”