The world is way off track on climate goals
Prominent analysts just dropped a report that puts finer points on a reality many already suspect: the world is far from reaching Paris Agreement goals.
Driving the news: Some highlights from Wood Mackenzie's latest long-term outlook include estimates of the world's climate and how much it might cost to fix things.
- Their "base case" — which models evolution of current policies and tech trends — shows warming of 2.5°C (4.5°F) above preindustrial levels. (Remember lots of awful stuff happens in a world that hot — even today's warming levels have dangerous effects.)
- A pathway to "net-zero" emissions in 2050, consistent with the most ambitious Paris goal of 1.5°C, requires $2.7 trillion in annual investments.
State of play: Some kind of net-zero pledge covers 88% of global emissions.
- But action isn't meeting ambition — no major country is even on track for 2030 interim targets, they find.
- Renewables are growing fast but also face headwinds amid high interest rates, cost inflation and more.
- A Paris-friendly pathway isn't just about more money. For instance, they cite urgent needs around permitting and supply chain constraints.
The intrigue: Wood Mac's estimates differ somewhat with the International Energy Agency.
- IEA now sees oil and natural gas demand peaking this decade. Woodmac's "base case" sees oil demand peak in the early 2030s, and gas in the 2035-2040 timeframe, analyst David Brown told reporters.
- A reminder: peaks matter less than what follows. Woodmac's base case sees oil demand at a robust 92 million barrels per day in 2050.