Rapid emission reduction is key to limiting future temperature rises. As governments, companies and investors around the world begin to target net-zero emissions, this report looks across sectors and addresses the question ‘How can the deep, economy-wide transition necessary for this level of decarbonisation be achieved?’
In this report, the global decarbonisation scenario looks at how cleaner power, transport, buildings and industry can reduce the emissions gap to net-zero by 81 per cent by 2050. This decarbonisation scenario sees 63 GtCO2e removal across energy consuming sector and industrial processes. Stabilisation of emissions from land use, forestry and agriculture results in a further 7 GtCO2e cut versus the business as usual scenario.
This report discusses emissions in the context of net-zero targets and looks at how economies are positioning to deliver on their ambition as well as what future catalysts will drive decarbonisation. Subsequently, this report sets the projected pathways for decarbonisation across four major emitting sectors: power, transport, buildings and industry. These pathways are then aggregated to create the Future Frontiers Scenario. The pathway explored exhausts a lot of the technological options available and there remain many policy gaps, albeit the report highlights the specific future catalysts in policy, technology and innovation which can stimulate the scale-up required.
Responsible investment frameworks can play a crucial role in driving companies to deploy resources towards lower carbon solutions. This report, produced by HSBC Global Research, can help investors to shape their portfolio decarbonisation strategies, by focusing on the major sectors which will be the priority for greenhouse gas emissions, via energy consumption and other industrial processes.