While the global automotive industry is making strides in decarbonization, a global backlash against the domestic costs of meeting carbon emissions reduction targets is putting the chances of meeting Net Zero by 2050 at risk.
That’s the major conclusion of KPMG’s 2023 Net Zero Readiness Report that says despite the automotive industry’s impressive push for battery-electric vehicles, the level of growth in the sector varies globally and is threatened by the ability of charging infrastructure to keep pace.
Report authors held conversations with national climate change experts in 24 markets and across six economic sectors, and their report highlights those that are leading the charge in their progress toward net zero, and those where it is taking place more slowly.
They suggest that, 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. In fast-growing economies, rapidly increasing energy demand is triggering investment in both low carbon and fossil fuel generation, leaving certain countries, such as India, unlikely to reach net zero until 2070, while in China, coal consumption is projected to rise until 2025.
Mike Hayes, climate change and decarbonization leader and global head of renewable energy at KPMG International, says: “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 (both carrot and stick), technical innovation and educating society about the transformational changes that are required in our consumption and investment behaviors.”
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