Decarbonisation driving down carbon emissions

The World Economic Forum predicts a $13.5 trillion investment by 2050 for decarbonisation, aiming to transition key sectors to achieve net-zero emissions targets through clean power, hydrogen production, and carbon capture technologies.

Decarbonisation reduces or eliminates CO2 and other greenhouse gas (GHG) emissions to mitigate climate change. The importance of decarbonisation lies in its ability to help stabilise global temperatures and limit climate change’s dangerous and irreversible effects by achieving net-zero GHG emissions. It means balancing the amount of GHG emitted with an equivalent amount removed from the atmosphere.

Key sectors acting as sources of global emissions include energy, transportation, buildings, and agriculture. The transportation sector plays a significant role due to emissions from vehicles and aircraft, while building operations and agriculture contribute through energy use and methane emissions, respectively.

The role of renewable energy The transition from fossil fuels to renewable energy will lead to decarbonisation efforts. In 2023, the world witnessed a surge in renewable energy capacity, increasing by 50 per cent from the previous year, led by advancements in solar and wind technologies. For instance, the cost of solar PV and onshore wind power has become competitive, making them cheaper than new and existing fossil fuel power plants.

Countries like China, the United States, the European Union, and Brazil led this expansion. China alone expected to install more than half of the new global capacity required by 2030, ahead of its targets due to the economic attractiveness of these technologies. Similarly, the United States is seeing accelerated renewable additions, spurred by policies like the Inflation Reduction Act.