As BNP Paribas Asset Management have previously explored, getting to net-zero carbon emissions around mid-century is key to achieving the aims of the Paris Agreement on climate change and limiting the global rise in temperatures to 1.5
°C.
The International Energy Agency this year outlined its version of what a ‘net zero by 2050’ future could look like. The organisation is well known for its scenario-based work charting energy and emissions futures, but has been criticised by investors and other stakeholders – which use its scenarios to help inform decision-making – for not producing a scenario in line with 1.5°C warming.
This changed with the launch of the Net Zero by 2050 report, which outlines measures based on a new Net Zero Emissions Scenario. The NZE is normative – it is designed to achieve an emissions pathway consistent with 1.5°C (with no temperature overshoot), while providing universal access to energy and significantly reducing air pollution in 2030. What does the report mean for investment in the energy industry?
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