World will fail to reach net zero by 2050 – Allianz study

A new study by insurance company Allianz suggests that the world is unlikely to achieve net zero emissions by 2050, with global efforts only expected to reach that target by 2064. The EU, however, is projected to meet its net zero goal by 2057. According to the Green Transition Tracker, limiting global warming to the 1.5 degree Celsius threshold outlined in the 2015 Paris climate agreement is virtually impossible.

The study analyzed data from the 64 countries that emit the majority of greenhouse gases, with China being the largest emitter at 30% of global emissions, followed by the United States at 11%. The EU, while the leader in reducing carbon emissions at 6%, has slowed the pace of reduction. Despite climate action not being a political priority in many countries, and the US abandoning its climate targets under President Trump, 56 of the 64 countries have made progress in phasing out fossil fuels and reducing emissions.

Solar panels and electric cars have seen increased sales due to the war in Iran, driving down fossil fuel consumption and contributing to a rise in renewables to 33.5% of global energy generation, surpassing coal for the first time. CO2 emissions may even decline by 0.5% this year. Allianz, like other major insurance firms, conducts its own economic research, as climate action is of particular interest to the industry due to claims data showing a correlation between global warming and an increase in damage from natural disasters over time.