According to Principles for Responsible Investment, the next five years will see “sweeping” changes to government policies in the energy, transport, and food sectors
A surge in electric vehicle adoption, peak meat consumption, and a substantial increase in wind and solar power generation will be among the distinguishing features of 2030, according to a new report from a UN-backed body.
According to Principles for Responsible Investment, the next five years will see “sweeping” changes to government policies in the energy, transport, and food sectors that would lead to peak meat consumption by 2030, and greater carbon dioxide emission absorption by the soil as land use patterns change, Reuters reports, citing the report.
All this would bring the world on track to keep global temperatures rising by no more than 2 degrees Celsius from pre-industrial era levels. The more ambitious target of keeping temperatures rising by no more than 1.5 degrees Celsius from pre-industrial times would require more political action, the report also said.
“BlackRock believes climate risk is investment risk and assessing climate risk on the path to net zero requires credible scenarios outlining not only what is possible but what is likely,” said the head of ESG Investment, Global Fixed Income at BlackRock, Ashley Schulten.
BlackRock is among the strategic partners of the Inevitable Policy Response, the climate forecast division of the Principles for Responsible Investment.
“The detailed policy forecasts in this work help the market conceptualize the key changes that could occur in energy and land systems across the world if the forecasted climate policy acceleration occurs,” Schulten also said, as quoted by Reuters.
The 1.5-degree scenario will be a lot more difficult to achieve, according to the authors of the report. It would require the almost complete global phase-out of internal combustion engine vehicles by 2040, the end of coal by 2035, and 100-percent clean power generation by 2045.
Even the “Forecast Policy Scenario” that the authors see as most likely will be challenging in light of current energy demand and supply trends.
By Irina Slav for Oilprice.com
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