A recent report by consultancy firm Wood Mackenzie has emphasized the necessity of a yearly global investment of $2.7 trillion to attain net-zero emissions by 2050, preventing a temperature increase above 1.5 degrees Celsius this century.
Scientists assert that limiting the global average temperature rise to 1.5 degrees Celsius is crucial to avert catastrophic climate consequences.
Many governments have committed to reaching net-zero emissions by mid-century in pursuit of this objective.
Nevertheless, the report reveals that most countries are not on course to meet their emissions targets by 2030, let alone the more ambitious 2050 goal.
The term ‘net zero’ signifies the reduction of emissions to the lowest possible levels, with any remaining emissions being absorbed from the atmosphere, for instance, by oceans and forests.
Existing emissions reduction commitments by governments are insufficient to prevent global temperatures from exceeding the 1.5-degree Celsius mark, and they may lead to a potential 2.5-degree Celsius warming by 2050, warns the United Nations.
Wood Mackenzie underlines that to decarbonize the energy sector successfully, an annual investment of $1.9 trillion is required.
To keep global warming in check at 1.5 degrees Celsius, this investment must surge by 150% to reach $2.7 trillion annually. The majority of this funding must be directed toward the power and infrastructure sectors.