G20 nations around the world need to ensure businesses improve on their patchy decarbonisation progress.
That’s the verdict delivered in a new report from PwC, which shows although the carbon intensity of the global economy fell 2.6% last year, this remains less than half of what is required to limit global warming to well below 2°C as outlined in global targets.
The firm’s Low Carbon Economy Index (LCEI) suggests these annual reductions need to reach 6.3% to limit warming to 2°C.
In contrast, Indonesia, Argentina, Turkey and South Africa saw increases in emissions exceed their GDP growth – the report states increased coal use in these countries means the fossil fuel still accounts for a third of the world’s power consumption.
Jonathan Grant, Director of Climate Change at PwC, said: “When it comes to action on climate change and the two degrees goal, the gulf between the best and worst performing nations is widening – and this creates problem for business.
“Companies are being encouraged by investors and others to assess the risks of 2°C scenarios. But they’re not forecasting or planning on a 2°C outcome, because the signals from governments just aren’t there right now.”