Governments and industries must deliver transformative change on net zero but are currently hamstrung by significant barriers, including global public debt, domestic tensions, increased opposition to decarbonization plans, and the need to guarantee energy supply, according to KPMG’s 2023 Net Zero Readiness Report.
Despite incremental momentum and specific successes, such as the scaling up of low-carbon energy production from some of the world’s largest emitters (including the US, China, Brazil, Canada and the EU), progress is constrained by a backlash over the cost of decarbonization and conflict over its domestic impact.
Through conversations with national climate change experts in 24 markets and across six economic sectors, the report highlights those that are leading the charge and their progression towards net zero, and those where this process is much slower.
In certain markets and sectors, the impact of low carbon projects on local wildlife, biodiversity and communities is triggering a rise in ‘green on green’ conflicts, causing clashes between renewable projects and the local environment.
On an individual country level, meaningful progress is hindered by opposition to measures that are perceived to have a considerable cost to people’s livelihoods.
"If we are to truly make meaningful strides towards net zero, at the necessary pace, while ensuring a stable energy supply, much greater focus is required. This means that governments, businesses and society as a whole should continue to pursue action to address climate change. We need to explore areas such as the policy environment (both carrot and stick), technical innovation and educating the society about the transformational changes that are required in our consumption and investment behaviors", says Moa Cedhamre, senior manager and sustainability advisor at KPMG.
Six key insights from Net Zero Readiness Report
1. Several of the world’s biggest emitting countries have increased their net zero ambitions.
2. Net zero is weaving itself into the world’s economic systems.
3. Production of low carbon energy is growing rapidly.
4. Increasing electric vehicle sales show how rapidly some sectors can decarbonize.
5. Impacts of low carbon power projects on local environments are causing ‘green on green’ conflicts.
6. Net zero backlashes occur when people fear costs and bans rather than recognizing new opportunities.
Moa Cedhamre
Senior Manager, Advisory and Sustainability Services
KPMG in Sweden
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Net Zero Readiness Report 2023
The Net Zero Readiness Report (NZRR) examines steps taken by 24 countries as well as key economic sectors to reduce the greenhouse gas emissions that cause climate change. It also discusses their preparedness and ability to achieve net zero emissions of these gases by 2050.
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