Nearly half of energy executives think we won’t reach net zero until 2070

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Nearly half (44%) of energy and natural resources executives believe the world will not reach net-zero emissions until 2070 or later, up from 32% last year, according to Bain & Company’s survey 
• The decline in optimism is attributed to rising capital costs, financial constraints, and a shifting focus toward return on investment rather than ESG commitments
• Only 32% now expect net zero by 2050, down from up to 50% in previous years

🔭 The context: Many companies in oil and gas, utilities, chemicals, mining, and agribusiness are facing increased costs, with 31% reporting capital project costs rising over 10% year-over-year
• Some major corporations, including BP and Wells Fargo, have recently postponed or softened their net-zero commitments
• Political uncertainty, including opposition from President Trump to certain climate policies, is further complicating the transition

🌍 Why it matters for the planet: Delays in net-zero timelines could mean prolonged reliance on fossil fuels, slowing the adoption of renewable energy and increasing long-term climate risks
• However, the demand for clean energy remains strong, especially as AI-driven data centers are expected to consume 2.6% of global power by 2027
• Bain estimates that meeting these energy needs could require over $2 trillion in new generation capacity, presenting both a challenge and an opportunity for clean energy investment.

⏭️ What's next: Despite concerns over capital costs and ESG investments, executives remain optimistic about emerging technologies like AI, energy storage, and carbon capture
• The business case for renewables is strengthening, but infrastructure demands remain high
• The future of net-zero commitments will likely depend on policy decisions, technological advancements, and shifts in investor sentiment

💬 One quote: “Executives are saying this [the transition to net zero] is going to be really hard.” — Grant Dougans, Partner at  Bain & Company (See sustainability performance)

📈 One stat: 31% of companies reported capital project cost increases of more than 10% compared to the previous year

See here detailed sustainability performance of companies like Bain & Company, BP and Wells Fargo

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