…Finds that decarbonization rate of 12.9 per cent is essential to halve global emissions by 2030
MON 22 NOV, 2021-theGBJournal- According to PwC, the global advisory and tax services firm with a network of firms in 156 countries, in its latest report ’Mitigating Climate Change through the Net Zero Economy’, funding remains the main challenge the country faces in actualising its Net Zero ambition.
PwC noted that earlier this year, President Buhari argued that the country will require more than $400 billion to build infrastructure for generating, transmitting, and distributing electricity to reduce overreliance on fossil fuels, suggesting that it would be a herculean task to raise such an amount of funding.
Along with more than 130 countries, Nigeria has pledged to reach Net Zero emissions in the next several decades. Being Africa’s largest oil producer, Nigeria has committed to achieve Net Zero emissions by 2060 while also emphasizing the importance of gas as a transition fuel.
Nigeria’s Net Zero commitment is consistent with other oil producing countries such as Saudi Arabia and the United Arab Emirates, which also pledged to achieve carbon neutrality by 2060.
Speaking at the COP26, Nigeria’s President Muhammadu Buhari said that although the country was already experiencing adverse effects of climate change, but due to challenges of energy access and issues related to energy poverty, it will rely heavily on gas for a stable energy transition.
According to President Buhari, relying on gas would enable Nigeria to launch long-term renewable energy infrastructure procurements and investments needed to attain sustainable energy supply.
Meanwhile, the PwC Net Zero Economy Index finds that a decarbonization rate of 12.9 per cent is essential to halve global emissions by 2030 and achieve Net Zero by mid-century. This means that countries and businesses must invest more in technologies such as renewable energy projects to accelerate the Net Zero transition.
The PwC Net Zero Economy Index tracks the degree of decarbonization of the G20 across energy-related emissions.
Amongst the G20, Mexico and Indonesia had the highest rates of emissions reduction in relation to their economic growth.
Across the two countries, energy-related emissions dropped by 12.4 and 10.6 percent, respectively on 2019 levels, mostly because of economic restrictions from the COVID-19 pandemic.
‘’As of 2020, global decarbonization was only 2.5 percent. Achieving the goal of the Paris Agreement of limiting warming to 1.5 degrees Celsius and delivering Net Zero would require more than five times increase in the rate of global decarbonization every year.’’
On the other hand, the Intergovernmental Panel on Climate Change (IPCC) issued a code red that there is more than a 50 percent chance that we will reach 1.5 degrees Celsius within the next two decades if emissions continue at current rates. ‘
‘’Whereas many countries have reinforced their pledges, the ambitions are not anywhere close to keeping global warming to 2 degrees Celsius much less 1.5 degrees Celsius,’’ PwC said.
It says that Governments have a crucial role to play in creating the enabling environment for the transition to Net Zero through policy and regulatory reform and investment. National targets need to be underpinned by policies that will deliver change at the pace and scale required.
These policies will vary by nation, depending on the socio-political and economic context, but need to set the regulatory environment that businesses and individuals operate within, and encourage capital to be deployed to the right places.
‘’This requires clear all-embracing strategy and ambition, long-dated policy mechanisms and the removal of fiscal or other disincentives.’’
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