Surging power demand putting Net Zero in doubt

Surging power demand and mounting geopolitical tensions have made 2050 net zero goals “unattainable”, according to a new report.

The world is currently on track for 2.6°C of global warming, according to Wood Mackenzie’s latest energy transition report.

Few countries, and no major G7 countries, are on track to meet 2030 emissions goals. However the report said a significant investment increase could still limit the average temperature increase to within 2°C warming by reaching global net zero emissions by around 2060.

“The energy system is becoming more complex, interconnected, and, volatile,” said Prakash Sharma, vice president, head of scenarios and technologies for Wood Mackenzie.

“As power demand surges due to the expansion of technologies such as AI and electrification, what was once a mostly aspirational shift towards decarbonization is now facing the hard trade-offs of scale, system integration, capital allocation and geopolitics.”