The goals outlined in the 2015 Paris Agreement to limit global warming require a significant drop in carbon emissions by 2050 across the verticals of the global socio-economic order, by shifting completely away from oil and gas consumption.

“We ⁠must, however, confront our ambition with reality and acknowledge that our societies have embarked on a transition, but at a pace that does not yet allow for the collective achievement of carbon neutrality as pursued under the Paris Agreement. Our own ability to achieve carbon neutrality together with society depends on technical innovation, public policies and consumer choices, meaning that the pathways to our carbon neutrality ambition must be reassessed and adapted over time in line with the ‌evolution ⁠of the global energy system,” TotalEnergies said in its annual sustainability report.

While TotalEnergies’ European peers BP and Shell aim to bring down the carbon intensity in their energy products by 2050, they have also said that the pace at which society transitions away from hydrocarbons would be an important factor to achieve the deadline.

“The company is not in a position to adopt a transition plan as defined by the European reporting standards and, as a result, cannot formulate ‘Net Zero’ targets in the meaning of these standards,” TotalEnergies said.

Recently, Reuters reported that “in ⁠2025, the French oil major emitted 368 million metric tons of CO2 equivalent, the bulk of which were so-called Scope 3 emissions from clients burning purchased fuels. ⁠This was down from 376 million tons in 2024 and within the company’s target to keep these emissions under 400 million tons through to 2030.”

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Announcing in a statement that it would look to build gas power plants to prevent the threat of energy blackouts, the Conservative government hopes to reach net zero carbon emissions by 2050.

As a means of containing exorbitant domestic electricity and gas bills, which skyrocketed following Russia’s invasion of Ukraine in early 2022, cutting off gas supplies and igniting a crisis related to rising costs of living, the United Kingdom has led the way in the use of low-carbon energy sources like nuclear, solar, and wind power.

“The government has committed to support the building of new gas power stations to maintain a safe and reliable energy source for days when the weather forecast doesn’t power up renewables,” it said in a statement.

“Britain must achieve its net zero goal in a sustainable way that doesn’t leave people without energy on a cloudy, windless day,” Rishi Sunak added.

In order to maintain balance and guarantee the security of energy supplies, the independent Climate Change Committee (CCC), a British body that provides advice to the state, acknowledged in 2023 that a “small amount” of gas-fired power in 2035 was “compatible with a decarbonised power system.”

Rishi Sunak weakened the administration’s net zero objectives around the same time frame, notably by pushing back the sale of gasoline and diesel vehicles by five years, until 2035.

To improve energy supplies amid Russian President Vladimir Putin’s conflict in Ukraine, the United Kingdom has also granted a large number of new permits for the exploration of oil and gas.

“This is the latest step in efforts to reach net zero in a sustainable, pragmatic way that rids the UK of the need to rely on foreign dictators like Putin. The UK led the way in banning imports of Russian gas and is delivering new sources of home-grown energy: with new nuclear power plants, record investment in renewables, and new oil and gas licences in the North Sea,” the British government remarked further.

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According to a new report released by the professional services firm, less than USD 2 trillion is invested annually in the transition process. This is far less than the funding required to help put the world on track to meet climate goals.

Deloitte stated that annual investments in the energy sector must range from USD 5 trillion to USD 7 trillion if the world is to achieve net-zero emissions by 2050 or drastically reduce emissions.

“Green projects currently suffer from underinvestment and high required return rates because private investors tend to see green technologies as riskier than alternative investments,” Deloitte noted.

To help reduce the risk associated with green projects, governments, financial institutions, and investors must work together to develop mechanisms, the Deloitte report stated further.

Creating ‘blended, low-cost finance solutions’ is one way to encourage private investment, particularly in developing nations, the study noted.

“Just as we are continually developing solutions and technology to rapidly decarbonise, we must take definitive steps to remove financial barriers to accelerate a just energy transition, especially in developing economies,” Jennifer Steinmann, Deloitte Global Sustainability and Climate practise leader said, while interacting with Zawya.

According to Deloitte, through better financing arrangements and execution, the transition to net-zero can be accomplished at a lower cost and yield savings of USD 50 trillion by the year 2050. Nations need to look for areas where costs can be cut to succeed in the race toward net-zero.

“For instance, less than half of green investments are currently made in developing economies mostly due to greater risks and stricter public budget constraints for energy transition projects,” the report explained, while adding, “However, to reach net-zero, nearly three-quarters of green investments (70%) would need to be made in developing economies by 2030 as these nations look to new, sustainable infrastructures and technologies.”

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While Prime Minister Justin Trudeau’s government has implemented a carbon tax and plans to regulate emissions from various sectors, the report stresses the need for collective action from industries, provinces, and individuals.

CER’s Chief Economist, Jean-Denis Charlebois, acknowledged the ambitious nature of the goal and highlighted the requirement for contributions from all sectors. The government has recognized the necessity for further actions to meet the 2050 target.

Natural Resources Minister Jonathan Wilkinson noted that while Ottawa is committed to the announced policies, continuous evaluation and potential acceleration in specific areas may be necessary.

The report serves as a call to action, emphasizing the importance of provincial governments in developing credible plans tailored to their unique circumstances, as stated by Binnu Jeyakumar, Director of Electricity at the Pembina Institute think-tank.

According to the report, Canadian oil production is projected to continue growing until the late 2020s due to high prices, even with intensified emissions reduction efforts.

In the most optimistic scenario, with new actions and global warming limited to 1.5 degrees Celsius, Canadian crude production would peak in 2026 and decline to 1.2 million barrels per day by 2050.

However, in a scenario where the rest of the world progresses more slowly, Canadian oil production would rise until 2029. If limited action is taken to reduce emissions, Canadian oil production will peak in 2035.

If Canada achieves net zero by 2050, the report highlights a significant increase in wind generation and the dominance of zero-emission or low-emission technologies in electricity production. The CER also projects a doubling of electricity demand by 2050 if the net zero goal is met.

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