Widening chasm between reality and ambitions endangers net zero targets

With climate change engulfing the world in heatwaves, countries around the globe have intensified efforts to embrace the energy transition narrative and switch from chapters riddled with fossil fuels to those empowered by cleaner sources of supply. However, the rift between the current energy landscape and greener desires continues to expand, putting global net zero targets in peril, based on a new report from the Energy Industries Council (EIC), an energy industry trade association and voice for the global energy supply chain.

The EIC’s inaugural ‘Global Net Zero Jeopardy’ report has sounded the alarm with its findings, which show that only 11% of energy industry leaders believe global interim targets for achieving net zero will be met. Based on surveys and interviews with 38 energy industry professionals, the report outlines the bleak global outlook for meeting interim climate targets, muddied by unclear policies and significant disparities in capabilities and priorities of different nations.

The skepticism, which is evident in this, highlights “a critical and growing gap” between current industry reality and the ambitious net zero goals set by policymakers for 2030-35, despite a more optimistic outlook for 2050 targets, where 45% of respondents still see a pathway to success of global net zero targets, according to the Energy Industries Council.

Furthermore, study participants had a slightly more optimistic outlook on meeting net zero targets in their respective countries in comparison to their views on global targets. While only 16% of respondents felt optimistic about achieving their country’s interim net zero targets, a whopping 66% believed that the national 2050 goals were still achievable.

Therefore, there’s cautious optimism for longer-term targets, supported by legally binding targets and the impact of technological and capacity growth advances. However, the skepticism, arising from skill shortages, enforcement failure, and funding gaps is still significant, as some participants see only a major catastrophe as the catalyst for action. Others call for more proactive and mandated government directives for net zero achievements.

Commenting on this, Stuart Broadley, EIC’s CEO, noted: “This disparity in optimism underscores a crucial point. While the immediate future appears daunting, with most leaders now holding the view that interim targets are unachievable, there is a stronger belief—both within our home nations and collectively as one global community—in our ability to correct our course by the ultimate 2050 target date. This optimism is due to the potential for technological advancements and the conversion of policy into implementation.”

Moreover, 61% of interviewed executives stressed the need for more investment and incentives to launch net zero projects, pointing to the high costs of green transitions and the importance of ensuring profitability to bankroll sustainability goals.

On the other hand, the report emphasizes that 45% cite unclear and inconsistent government policies as obstacles, advocating for stronger, more supportive regulations and international cooperation to foster a unified approach to sustainability.

Regarding capacity, 22% of participants have highlighted supply chain and infrastructural limitations, noting the gulf between current capabilities and the requirements for a full transition to net zero. These survey results reveal that 87% hold governments primarily responsible for not meeting net zero targets, urging policy and regulatory reforms to mitigate climate change.

The report’s findings single out the energy industry, which is seen as a key player in innovation and emissions reduction, as the second most accountable. With this at the forefront, the results underline the call “for immediate, collaborative efforts led by strong governmental policies to drive sustainability,” in the EIC’s view.

Recently, the Energy Industries Council published its latest country report focused on the United States, which examined various facets of the U.S. energy landscape, shedding light on crucial aspects of oil and gas production, downstream activities, electricity generation, renewable energy trends, and the evolving scope of clean energy initiatives.

The report offers insight into the rising prominence of renewables, including solar and wind, explaining that solar power, buoyed by tax credits and the Infrastructure Bill, is anticipated to contribute over 40% of U.S. electricity by 2035.