Confidence in achieving global net-zero targets has sharply declined within the energy industry, according to the Net Zero Jeopardy Report II released by the Energy Industries Council (EIC).
The report highlights significant barriers to progress, including policy instability, financial uncertainty, and slow project approvals.
The survey, which interviewed senior energy executives primarily from UK-based EIC member companies, found that only 16 per cent now believe the world can achieve net zero by 2050, a dramatic drop from 45 per cent in the previous year
This decline in optimism stems from growing concerns over unclear regulatory frameworks, underinvestment in clean technologies, and delays in bringing projects to the final investment decision (FID) stage.
Stuart Broadley, EIC CEO, emphasised the industry’s struggle to transform pledges into tangible projects.
“Business leaders are not seeing the level of policy certainty or investment required to deliver net-zero ambitions,” Broadley stated.
He called for immediate reforms to streamline licensing processes, reduce bureaucracy, ensure consistent policies and regulations, and provide appropriate financial incentives.
The outlook for interim targets is even bleaker.
Only 14 per cent of respondents believe their country will meet 2030 climate goals, down from 16 per cent in last year’s report.
Globally, a mere 5 per cent have faith in meeting interim targets, compared to 11 per cent a year ago.
Mahmoud Habboush, author of the report, warned that the energy transition is at risk of derailment due to these fundamental barriers.
The report also highlighted concerns about supply chain vulnerabilities, particularly in clean technology manufacturing and logistics, with many components for renewable energy projects sourced from China.
The offshore wind sector exemplifies the challenges in scaling up clean energy.
Despite ambitious targets, only 10 per cent of offshore wind projects and 9 per cent of hydrogen projects have reached FID, compared to 21 per cent for upstream oil and gas.
Lengthy permitting processes, grid access constraints, and an uncertain investment climate are contributing to the slow pace of new projects moving from planning to construction.
As the energy industry grapples with these challenges, the EIC report serves as a wake-up call for policymakers and stakeholders.
Without addressing these critical issues, the path to achieving net-zero goals appears increasingly uncertain.
