From Paris-Aligned to Net Zero by 2050
WHAT IS THE OBJECTIVE OF THE PARIS AGREEMENT?
Keep global temperature increase ‘well below’ 2°C
Pursue efforts to limit it to 1.5°C
WHAT IS NET ZERO?
Net Zero occurs when the greenhouse gases going into the atmosphere are balanced by removal out of the atmosphere.
Six years on from the Paris agreement, the objective is clear:
Limit the temperature rise to 1.5°C above preindustrial averages,
which means reaching net zero carbon emissions by 2050.
SHARE OF GLOBAL CO2 EMISSIONS COVERED BY NATIONAL NET ZERO PLEDGES*
Source: IEA's Net Zero by 2050 report *In law, proposed, or in policy documents
ARE WE ON TRACK FOR
Unfortunately not. Even if governments would pass all the necessary policies to deliver fully and on time their net zero pledges, only 40% of the emissions gap would be closed.
Policy Gap
Ambition Gap
GLOBAL CO2 EMISSIONS PATHWAYS BY SCENARIO, IN GTCO2
Central scenario
Announced pledges
Net Zero 2050
The required ramp up of industrial capacities is overwhelming. Renewable power should be 2.5x higher than in 2020 throughout 2030.
Energy investments rise from 2.5% to 4.5% of GDP in 2030 with clean energy investments needs three times higher than in 2016-20.
2/3rd’s of incremental reduction beyond 2030 depends on technologies that are still under development: solid-state batteries, CCUS, green hydrogen, direct air capture.
the challenges to Closing this gap are:
Policy coordination is required to share the costs related to the ramp up of new technologies (subsidies) and avoid tensions around competitiveness issues.
Breaking habits is not an easy thing. Social acceptation of climate policies remains a key challenge.
Industrial
FINANCING
INTERNATIONAL POLICY COORDINATION
SOCIETAL ACCEPTANCE OF BEHAVIOURAL CHANGE
INNOVATION
Industrial
FINANCING
INNOVATION
INTERNATIONAL POLICY COORDINATION
SOCIETAL ACCEPTANCE OF BEHAVIOURAL CHANGE
Development of wind and solar, electric vehicles, carbon capture & storage, green and blue hydrogen, or zero-carbon-ready buildings.
WHAT IS NEEDED?
Approvals for unabated coal plants as early as this year (2021), but also new fossil fuel boilers from 2025, non-LED lighting solutions from 2030 and new cars powered by combustion engines from 2035.
WHAT IS NOT NECESSARY TO HAVE?
New oil and gas greenfield developments and new natural gas liquefaction plants. Although not directly compromising compliance with the carbon budget, they still represent a potential wasted opportunity to allocate capital towards low-carbon solutions.
WHAT IS NOT NEEDED?
RESPONSIBLE INVESTING AT AMUNDI
in responsible investing with
USD 929bn AUM
as of 30/09/2021
1st place in SRI & Sustainability Extel/UKSIF ranking 2019
Rate A+ for the 6th year in a row in Strategy & Governance
RECOGNISED EXPERTISE
2050
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In the last 5 years, we have seen increasing net-zero pledges from both the public and private sector.
*as of 30/09/2021