The fast view
A transition to net zero is unlikely to be neat or methodological. Industries will not find low-emission technology that steadily reduces global emissions by 7.6% each year; a pace of reduction which would halve emissions by 2030. As timelines lag there is likely to be a scramble to catch-up. We already see signs of shifting supply and demand patterns creating volatility, not to mention protectionism, in markets. Evidence suggests we are at the start of a disorderly transition. Next to the actions of policy makers, how disorderly the transition becomes will be influenced by asset owners, investors, and companies’ own emission reduction plans.
