KPMG – Net Zero Readiness Report, 2023

The KPMG Net Zero Readiness Report 2023 examines the progress made by various countries towards achieving net zero emissions. The report highlights that several major emitting countries have increased their ambitions to reach net zero. The US, the second-largest producer of greenhouse gases, has rejoined the UN Paris Agreement and introduced major tax incentives for decarbonization efforts. China, the largest producer of greenhouse gases, aims to reach peak carbon emissions before 2030 and has outlined plans to reduce coal consumption and increase renewable energy production. Australia has introduced new federal policies enshrining a net zero target date, while Canada has included incentives for clean economy investments in its budget. Brazil is considering the introduction of a regulated carbon market. The EU, known for its climate-conscious countries, has taken steps to accelerate renewable energy implementation following disruptions in gas supply from Russia. The report also highlights the growing integration of net zero into economic systems, with emissions trading systems being implemented in various jurisdictions and the introduction of carbon border adjustment mechanisms. Companies are expected to provide more information on climate change risks and plans under new standards, and the production of low carbon energy is rapidly increasing globally. Overall, the report emphasizes the progress made by various countries in their decarbonization efforts and the increasing importance of net zero goals in shaping economic systems.