Sidebars

Net Zero - what it means

Net Zero (aka NZE or "Net Zero Emissions") and STEPS - the IEA's two scenarios

John Wall

— 2 min read
Share
Net Zero - what it means
Photo by Marek Piwnicki / Unsplash

An Energy Transition is a broad term that describes a significant structural change to energy systems. The current Energy Transition is driven by the recognition that GHG emissions must be drastically reduced. Net Zero or Net Zero Emissions ("NZE") is more specific and measurable. It refers to the IEA scenario that shows a pathway for the global energy sector to achieve net zero CO2 emissions by 20501.

Additionally, the IEA refers to STEPS in its annual World Energy Outlook. NZE and STEPS represent very different visions of where the energy system is headed. STEPS (or Stated Policies Scenario) reflects the prevailing direction of travel for the energy system based on a detailed reading of the latest policy settings in countries around the world.

  • STEPS is where we're likely to get to based on current plans and action
  • NZE is what we need to do to make the Paris Agreement's 1.5°C goal

NZE shows a pathway to net zero CO2 emissions. It calls for global action on a scale that has few parallels in history. It demands investment across sectors and regions and breakthrough technologies across a spectrum of energy generation, transportation, storage, recovery and recycling. The challenges are many:

  • Overhauling the grid to make good on the mantra "Decarbonize the Grid, Electrify Everything"
  • Moving the so called hard to abate sectors (steel & aluminium, cement, aviation, international shipping & long-haul) to low carbon processes
  • Rethinking our unsustainable approach to waste processing
  • Transitioning farming to a circular agricultural economy
  • Realising the vast promise of the marine environment through regenerative aquaculture and responsible harvesting
  • Reversing the catastrophic acidification of our oceans; and many others

Transformation on such a scale requires major political action and policy cohesion

BloombergNEF's graphic and resources2 present a comprehensive view of the journey to Net Zero and looks at specific sectors in depth, as well as cross-sector and cross-geography trends and implications.

BloombergNEF’s map to NZE

Read next about the importance of a decarbonized grid to NZE .

References

  1. IEA — Net Zero Emissions by 2050
  2. BloombergNEF — website resources