CO2 emissions at record levels: New report on the 2023 carbon budget

CO2 emissions at record levels: New report on the 2023 carbon budget

According to a report by www.tagesschau.de,

Carbon dioxide emissions from fossil fuels have once again reached record levels. In 2023, emissions rose by 1.1 percent compared to the previous year to a total of 36.8 billion tons of CO2. Fossil fuels are therefore still the main source of man-made greenhouse gases. On the positive side, the EU and US decreased their emissions, while other countries such as China and India are still increasing. Measures such as underground or subsea storage of CO2 are being discussed around the world, but they currently only account for a minimal share of emissions reductions.

The figures make it clear that the 1.5 degree target is hardly sustainable, as the CO2 budget will be used up in seven years at current emissions. In order to maintain the chance of limiting the temperature increase to below 1.5 degrees, emissions would have to be reduced more than at the height of Corona. Despite the challenges, there is hope that the balance sheet will be better next year.

As financial professionals, we must analyze this information and evaluate its impact on the market. Rising global emissions could lead to increased regulatory action, particularly in countries that are not reducing their emissions. Investments in renewable energy and technologies to reduce emissions could become more important. At the same time, companies that take active measures to reduce their CO2 emissions could gain a competitive advantage.

The discussion about storing CO2 underground shows that innovations in carbon capture and storage (CCS) could continue to be an emerging investment opportunity, particularly as technologies are developed to market. In addition, there may be increasing pressure on policymakers to incentivize more sustainable practices in industry and developing countries.

The financial industry must prepare for these developments and assess the potential impact on investment portfolios, financial flows and business practices. Reporting on stable or declining greenhouse gas emissions will continue to have important implications for markets and investments.