Current policies and measures implemented to reduce emissions are “insufficient” to meet net zero emissions goals by 2050, as reported in a report by VINCI Energies Spain, a company that is dedicated to proposing solutions for digital transformation and energy transition.
Through its report ‘Global Energy, Energy and Geopolitics: Trends and Uncertainties’, the entity, in collaboration with EsadeGeo, has determined that failure to achieve net zero will result in CO2 emissions gap from 23 to 27 gigatonnes with respect to what must be implemented by 2050.
The analysis has as its starting point the world population projectionswhich is estimated to exceed 10 billion people by 2060, and its direct consequences on the energy demand. At the moment China and India lead the ranking of CO2 emissions growth, with an increase of 350% compared to 1990according to the report.
Due to the increase in population there has been a boost in investment interest in renewable energywith solutions such as hydrogen, which has achieved relevance and has raised its demand projection to 115 million tons in 2030, as indicated by the International Energy Agency.
Still, as the report indicates, the measures implemented are still “not enough” and world powers are focused on two main strategies.
The first consists of a energy adaptation away from fossil fuels and that gives new prominence to countries with high levels of critical materials, and the second is based on promoting different approaches in industrial policies to promote the development of the sector nationally.
Green industrial policy
The report states that The energy sector accounts for 73.2% of global greenhouse emissions and 80% of energy consumption comes from fossil fuelsso “governments must begin a move away from non-renewable fuels.”
Furthermore, he points out that the drive for this change requires new resources to build clean energy infrastructurefor which the so-called ‘critical materials‘ such as exclusive minerals, lithium or copper.
According to the Stated Policy Scenario (STEPS) lDemand for mineral resources will double by 2040while the Net Zero Emissions (NZE) scenario quadruples and sextuples it by 2050.
This represents, according to the report, a great advantage for those nations that possess these resources. This is the case of Australia, Chile and, especially China, which has quotas of around 50% and up to more than 80% in rare minerals.
Therefore, attention is now focused on reactivate industrial policybased on generous subsidies to companies and consumers in key technology sectors, as they point out, with the United States, China and the European Union at the forefront of this new green industrial policy. However, they emphasize China leads the green technology market in most aspects.
Reference report: https://www.vinci-energies.es/app/uploads/sites/49/2024/02/Global-Economy-Energy-and-Geopolitics_Report.pdf
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Contact of the Environment section: crisisclimatica@prensaiberica.es