Governments and Industries Struggle with Debt, Domestic Conflicts, and Opposition to Decarbonization Plans
KPMG’s 2023 Net Zero Readiness Report reveals that governments and industries face hurdles in achieving net zero goals, citing global public debt, domestic tensions, opposition to decarbonization plans, and the imperative to ensure energy supply as key barriers. While there’s progress in low-carbon energy production by major emitters, challenges arise from cost concerns and conflicts over domestic impacts. ‘Green on green’ conflicts, particularly in certain markets and sectors, are escalating due to the impact of low carbon projects on local wildlife and communities.
The report identifies varying progress across sectors, highlighting the global success story of EV sales growth but pointing out slower advancements in international aviation and shipping. Achieving net zero by 2050 in these sectors relies on increased production of Sustainable Aviation Fuels (SAFs) and government incentives. Despite some countries shifting from coal to low carbon sources, fast-growing economies like India are balancing fossil fuels with low carbon generation to meet surging demand.
Anish De, Global Head of Energy at KPMG International, emphasizes India’s focus on solar, wind, hydrogen, and storage capacity generation but acknowledges the persistence of fossil fuel dependence amid rapid economic growth. Namrata Rana, National Head of ESG at KPMG in India, underscores the transformative nature of the NetZero transition, impacting industries, business models, jobs, and daily life. Apurba Mitra, Partner of ESG at KPMG in India, notes the solar boom in the country and the ongoing need for coal, emphasizing the importance of technology transformation in facilitating the transition and accelerating circular systems.