Deloitte: Reaching net-zero emissions by 2050 requires four times the speed of historical transformations like Industrial Revolution; research finds each year of delay in reducing carbon emissions can result in as much as US$150B in incremental costs

Key takeaways

• Deloitte analysis shows that to reach net-zero emissions by 2050, changes should be accomplished with urgency. The journey to net zero needs to happen at roughly 4x the speed of other major historical transformations like the Industrial Revolution. This will likely only happen via cross-industry and public-private collaboration.
• Acting now to capture emissions would be dramatically more effective than postponing the process: Deloitte’s analysis found that capturing 1 million metric tonnes per annum (mmtpa) of carbon by 2050 is equivalent to capturing only 0.35 mmtpa today.
• We have not yet reached peak emissions: Deloitte’s analysis highlights that despite a slowdown in the economy, there was a 1.1% rise in global energy related carbon dioxide emissions in 2023 compared to 2022, as reported by the International Energy Agency.
• Deloitte research uncovered that each year of delay in reducing carbon emissions can result in as much as $150 billion in incremental costs.
• A new way of doing business and of taking action through cross-sector collaboration and collective action could be key to driving global impact.
• The journey to net-zero emissions should involve careful planning and coordination among industries to realize the highest impact in a relatively short timeframe.

Why this matters

Deloitte’s new report, “Energy Transition: The Road to Scale,” explores a potential roadmap for the future, outlining strategic initiatives and cross-sector collaborations to help make net-zero emissions by 2050 a reality.

The report is the result of extensive research and Deloitte analysis, emphasizing the important role of cross-industry collaboration in paving the way towards a more sustainable future. The report focuses on the comprehensive strategies for sequencing and achieving sustainable progress in each of five verticals—infrastructure; power grid; industrial manufacturing; mining and metals; and land, water and waste.