Transcript: Emma Cox - Net Zero Economy Index 2024

Transcript

PwC’s Net Zero Economy Index tracks progress on the global rate of decarbonisation. This year's analysis shows that the reduction in carbon intensity has stalled to its lowest level in over a decade, at only 1.02%

This means the world must now decarbonize at a rate twenty times faster than last year to limit warming to 1.5 degrees. Overshooting this threshold is fast becoming a reality.

The consequences of potential overshoot are not abstract. They translate into real losses: of lives, people and livelihoods. Indeed the impact can be seen around us today, with climate disruption such as heatwaves, floods and storms leading to growing economic costs and hardships for people. Even limiting warming to 2 degrees, the lowest end of the Paris Agreement’s ambition, requires a step change in progress,

With an annual decarbonization rate of 6.9%, whilst there's been a strong growth in renewables with a 14% increase in installed capacity last year, energy demand growth is outstripping this. This means our reliance on fossil fuels continues to rise, with a 1.5% increase in consumption last year.

There's an opportunity here for businesses and policy makers to look more closely at tackling energy demand and efficiency, alongside continuing momentum on the supply side.

We need collective action at scale to achieve the exponential change required. This collaboration needs to happen both inside businesses - across functions such as operations, finance and technology. And outwardly, across industries, territories and between the public and private sectors. Current trends suggest an ever-widening gap between ambition and action. But by working together, we can make our climate actions count.