The path to net zero by 2050 is narrow and challenging

Significance

The IEA describes the technological necessities and the many challenges, noting that the energy transition will require unprecedented international cooperation. The scale of the actions needed, coupled with current trends, suggest that the world is unlikely to achieve carbon neutrality by 2050.

Impacts

• Carbon standards may divide global trade, with developing nations unable to afford to export products to developed nations in key sectors.
• Pressure on western oil and gas companies to align their spending with net zero carbon targets will grow.
• Energy transition technologies will attract sizeable government funding to speed up deployment and reap the benefits of early leadership.
• Japan, Australia and the Philippines have said they will ignore the IEA roadmap and still invest in coal, oil, and natural gas projects.