Energy Industry's Confidence in Global Net-Zero Goals Declines Amid Policy and Investment Challenges

Confidence in the global energy sector's ability to meet net-zero emissions targets by 2050 is diminishing, according to a report by the Energy Industries Council (EIC). The "Net Zero Jeopardy Report II" reveals that only 16% of senior energy executives now believe the world can achieve net zero by 2050, a significant decrease from 45% the previous year. The report, which draws insights from EIC member companies primarily based in the UK, highlights several barriers contributing to the decline in confidence, including policy instability, financial uncertainty, and slow project approval processes. These issues are complicating efforts to transition to cleaner energy sources and achieve ambitious climate goals. Stuart Broadley, EIC's chief executive, explained: “The energy industry is facing real challenges in turning pledges into projects. Business leaders are not seeing the level of policy certainty or investment required to deliver net-zero ambitions.” Broadley also stressed that, in the UK, meeting interim climate targets will require swift policy reforms, including the acceleration of licensing processes and cutting red tape. He added: “If the government is serious about achieving its interim targets, it needs to listen closely to what the supply chain is saying. The message isn’t a very happy one.” The report also indicates that confidence in reaching interim net-zero goals is even more pessimistic. Only 14% of respondents believe their country will meet 2030 climate targets, a slight decrease from 16% in the prior year. Globally, only 5% believe these interim targets will be met, down from 11% a year ago. Mahmoud Habboush, the author of the report, noted: “The data leaves no room for optimism—confidence in net-zero targets is collapsing across the energy sector. Industry leaders are not merely expressing frustration, they are passionately warning about fundamental barriers.” The report also points to challenges in the offshore wind sector, where delays in new projects are being attributed to lengthy permitting processes, grid access limitations, and an uncertain investment climate. Many current offshore wind installations in the UK and Europe are the result of investment decisions made more than a decade ago, raising doubts about whether future clean energy goals will be achieved. Financing remains a key obstacle, as investors continue to hesitate in backing new clean technologies like hydrogen, carbon capture and storage, and grid infrastructure. While private sector investment interest exists, the lack of long-term, stable policies continues to create significant financial risks. The report also draws attention to the slow pace at which clean energy projects are advancing to the final investment decision (FID) stage. Only 10% of offshore wind projects and 9% of hydrogen projects have reached FID, compared to 21% for upstream oil and gas projects. Another concern raised by respondents was the vulnerability of the clean technology supply chain, particularly regarding the manufacturing and logistics of renewable energy components like wind turbines and battery storage systems, much of which is sourced from China. This reliance on a single market has led to concerns over energy security, trade policy, and supply chain resilience. As the energy sector faces mounting challenges, the report emphasizes the urgent need for policy clarity and financial incentives to foster the development of clean energy infrastructure and ensure that global climate targets remain achievable.

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Energy Industry’s Confidence in Global Net-Zero Goals Declines Amid Policy and Investment Challenges

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