This rate represents a very slight improvement from last year’s rate of 2.4%, but is still significantly lower than the annual global rate of decarbonization required to achieve the 1.5ºC goal.
Whilst the impact of COVID-19 continues to be felt across the world, many countries are beginning to lift restrictions. With it we are seeing a resurgence in economic activity and a rebound in emissions. The growth in emissions during 2021 has been driven by an increase in demand for coal in electricity generation. Despite efforts by some governments to stimulate a green recovery, global energy demand is set to increase by 4.6% in 2021 – led largely by emerging markets and developing economies.
The PwC Net Zero Economy Index tracks the rate of decarbonisation of the G20 across energy-related CO2 emissions. Within the G20, Mexico and Indonesia recorded the highest rates of emissions reductions relative to their economic growth. Across these countries, energy-related emissions fell by 12.4% and 10.6% respectively on 2019 levels, largely due to economic restrictions in response to the pandemic. These results are expected to be an isolated occurrence rather than evidence of a longer-term trend as each country has announced plans to invest in fossil fuel production in 2021. None of the G20 member states achieved the 12.9% rate of decarbonisation now required to limit warming to 1.5°C.