More than half of African companies are delaying their energy transition targets, leaving them in danger of missing the Paris Agreement target of net zero carbon emissions by 2050, a new research by Standard Chartered has revealed.
Zeronomics, a study into the financing of a net zero world, surveyed the senior leadership of 250 large companies and 100 investment specialists around the world between September and October 2020 and found that 55 per cent of Africa-based business leaders believe their companies are not transitioning fast enough (55 per cent of companies globally).
It also found that lack of access to finance is the biggest barrier to progress for African companies, cited as a significant obstacle by 78 per cent (67 per cent globally), while only 35 per cent of African companies fully support the aims of the Paris Agreement compared with 47 per cent globally.
According to the research, many companies based in Africa are looking to delay significant action to after 2030, with the 2020s looking set to be a lost decade. Some 32 per cent of business leaders (34 per cent globally) said their companies will make the most progress between 2030 and 2040, while a further 40 per cent (37 per cent globally) said they would take most action between 2040 and 2050.
“Also, most companies are delaying transition because they do not feel they are currently equipped to meet the target. Some 78 per cent (59 per cent globally) said they need extensive organisational change before tackling net zero. A lack of finance isn’t the only hurdle companies in Africa face on the road to 2050. Read more…