The automotive industry, a key player in the global decarbonization effort, faces significant challenges in meeting Net Zero targets by 2050. This stark reality emerges from KPMG’s 2023 Net Zero Readiness Report, highlighting the complex interplay between technological advancements, economic pressures, and varying global progress.
Despite notable advancements in the automotive sector, particularly in the development of battery-electric vehicles, the pace of growth is inconsistent worldwide. This variation is partly due to the uneven development of essential charging infrastructure, which is struggling to keep up with the rapid expansion of electric vehicles.
Diverse Global Responses:
KPMG’s report, derived from discussions with climate change experts across 24 markets and six economic sectors, underscores the disparity in progress towards net zero. While some nations are at the forefront, others lag, hindered by various economic and political factors.
Economic and Societal Barriers:
The report points out that individual country progress is often slowed by public opposition to policies perceived as costly to livelihoods. In fast-growing economies, the surge in energy demand is fuelling investments in both renewable and fossil fuels. This duality is evident in countries like India, which may not achieve net zero until 2070, and China, where coal consumption is expected to increase until 2025.
Expert Insight:
Mike Hayes, a leading expert in climate change and decarbonization at KPMG International, emphasizes the need for concerted action by governments, businesses, and society. He advocates for a balanced approach, combining policy measures, technical innovation, and public education on the transformative changes needed in consumption and investment behaviors.
The journey towards net zero is fraught with complexities and requires a nuanced understanding of local and global dynamics. The automotive industry’s efforts, while commendable, highlight the broader challenge of aligning technological progress with sustainable and equitable growth across diverse global landscapes.
GENERAL | India’s Leap to Net Zero: Tech Drives Climate Goals and Cuts Pollution
