Overview

Decarbonization represents the next great transformation where the global energy landscape is seen changing more in the next 10 years. As the world’s energy sector moves away from fossil fuels toward renewable energy sources, industrial companies are challenged with addressing this transition in transformative ways. Institutional and private investors are preferring assets with decarbonization strategies.

As of December 2020, 127 countries have either set net zero emissions targets or declared intentions to do so, representing cumulatively, around 63% of global emissions. The recent wave of net zero targets has brought global emissions trajectories closer to the Paris Agreement’s 1.5°C goal.

Decarbonization is a critical transition that is affecting all businesses in the commercial and industrial sector. A key driver of this transition is policy, spearheaded on a global scale by the Paris Agreement. Globally countries are taking net zero pledges which is resulting in interim targets and policy revisions with wide-reaching impacts, including risks and opportunities for businesses, as countries chart courses towards meeting their net zero targets.