The race to net zero: we need to pick up the pace

Can all of us working in this sector keep up the pressure and the momentum?

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It was good to be back in my home city during COP26 and to be part of the buzz. The anticipated delivery from the long-awaited negotiations did not deliver on what was promised though: even those most closely involved in the 2-week long negotiations were clearly disappointed. In the words of Alok Sharma: the 1.5°C target is still alive, but its pulse is weak – and urgent action is needed now to ensure that it remains achievable.

There are many positive signs: the fact that all parties formally recognise the scale of the problem and the need to limit temperature rise to 1.5°C, is, itself a step forward.

We heard that India committed to achieve Net Zero by 2070 and that sounds very late, when other countries are targeting 2050, but this target was accompanied by some ambitious short-term commitments. It is important to recognise the scale of the challenge that India faces. Our own Pathways to Net Zero Emissions report anticipates that the Indian subcontinent will be later than other regions in reaching net zero – so this is not a surprise. Recognizing that some nations – like India – are not yet able to reach net zero by 2050, means that those nations which have been responsible for most emissions until now – USA, Europe, China, need to move faster.  Those countries where technology is already deployed and investment is available, must be carbon negative by 2050, namely, USA and Europe, according to our report.

On the important topic of finance in the energy sector, where 76% of finance today is directed to funding fossil fuels, a clear shift is on its way, with 20 countries – including the UK, the USA and Canada - committed to stop the use of public funding for international fossil fuel energy projects by the end of 2022. Five public banks, including the European Investment Bank also signed up to the agreement, meaning that a total of USD 18 billion of finance a year will be redirected to green energy sources. Aside from the main political stage, my own experience of COP26 shows that there is a huge momentum now – with business playing an important leading role in demonstrating what is achievable. The question for companies is no longer whether the transition will take place, but rather how fast.

As one clear example, The World Business Council for Sustainable Development brought together twenty-eight companies — including many International Oil Companies such as BP, Shell, Equinor and TotalEnergies, and other key players such utilities EDF, EDP, Enel, Engie and Iberdrola - to sign up to a new global initiative to accelerate the replacement of highly polluting grey hydrogen with lower-carbon H₂. That will boost the demand for lower carbon “Blue or Green” hydrogen and therefore create a market for the supply.

So, from across industry, from citizens and from all the NGOs that were attending the climate event in Glasgow, there is now a momentum which is unstoppable: the big question is how fast that will accelerate to deliver on these aims.  Now that the decision makers will have to come back to the negotiating table every year: can all of us working in this sector keep up the pressure and the momentum to move us down the Pathway to Net Zero – faster?