G20 nations ‘must improve climate action’

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 […]

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By Jonny Bairstow

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.

It claims the UK and China are leading clean growth, decarbonising their economies by 7.7% and 6.5% respectively in 2016 as they curbed coal consumption.

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.”