Who’s Making The Greatest Strides In Renewable Energy? Countries And Companies That Are Getting Closer To Net-Zero Emissions

Key takeaways

• With the world’s climate changing, countries and companies are moving towards net-zero emissions
• Some smaller countries have achieved net zero, with many more on target to reach the goal by 2050
• Investors can seek out specific companies to invest in or choose funds that make the environment a top priority

As climate change’s impacts become more evident, governments and businesses worldwide are scrambling to make a difference. The challenge is to move towards a net-zero emissions society by reducing carbon output as much as possible or offsetting it entirely.

Over the years, many countries have taken up this cause in their own way by investing billions into technologies used to reduce emissions from fossil fuels and promoting greener energy sources. Here is a look at the countries and companies committing to net zero and how investors can participate.

What are net-zero emissions?

Net-zero emissions aim to balance the number of greenhouse gasses released into and taken out of the atmosphere. The goal is to reduce the amount of carbon dioxide that pollutes the air.

Efforts are also being made to trap and neutralize carbon to reach a 50/50 balance of production and removal. In contrast, zero emissions aim to produce a negligible amount of greenhouse gasses.

The concept behind net-zero emissions encourages industries to reduce their carbon emissions while acknowledging that some pollution is unavoidable. Working towards a balance helps industries stay productive as they focus on adding technology that reduces their carbon footprint while remaining as effective as before switching to a green energy source.

Why push for net-zero emissions?

The push for net-zero emissions is becoming increasingly necessary as climate change’s impacts become more apparent. Reducing our carbon output to zero or near zero is a critical step toward preserving our planet’s future.

With extreme weather events becoming more frequent, sea levels rising and natural habitats disappearing at an alarming rate due to human activity, it has become clear that we must make drastic changes, including moving away from fossil fuels, to stabilize the climate. By reaching net-zero emissions, we can stop the damage that has already happened and hopefully begin the process of restoring balance to our planet’s fragile ecosystems.

Top Countries Working Towards Net Zero

Many countries worldwide have committed to net-zero emissions by 2050. To date, eight countries have achieved net-zero emissions. These include:

• Bhutan
• Comoros
• Gabon
• Guyana
• Madagascar
• Niue
• Panama
• Suriname

Seven countries are responsible for around half of all greenhouse gas emissions worldwide. They are as follows, listed in order of the largest polluter to the smallest:

• China
• United States
• India
• Russia
• Japan
• Germany
• Iran
• South Korea
• Saudi Arabia
• Indonesia

Most of these countries are taking steps to reduce carbon emissions to net zero through various efforts and are encouraging private industries to reduce their carbon footprints.

The International Energy Agency (IEA), an organization that tracks the global efforts countries are making towards net-zero emissions, recognizes that each country needs to find its own path towards the net-zero goal and that one size does not fit all.

In 2015, 196 countries adopted the Paris Agreement to reduce global warming and take action to slow down the rate at which the global temperature increases. Some countries have turned the agreement into legislation that sets a deadline of 2050 for net-zero emissions.

The countries that have made the 2050 goal into law include:

• Sweden
• United Kingdom
• France
• Denmark
• New Zealand
• Hungary

The countries that have proposed legislation for 2050 as a net-zero deadline include the following:

• European Union
• Canada
• South Korea
• Spain
• Chile
• Fiji

In late 2022, at the United Nations Climate Change Conference of the Parties (COP27), the U.S. introduced the Net-Zero Government Initiative that invited other governments to lead by example and take steps to reach net-zero emissions through government operations. This involves reducing carbon emissions generated by vehicles, power plants and facilities owned and operated by the federal government.

A total of 18 countries signed on to reduce carbon emissions at the summit.

Top companies aiming for net-zero

For countries to meet this ambitious goal, the help of private businesses is needed. About 42% of Fortune Global 500 companies have reached net-zero emissions or have publicly stated their intention to reach net zero by 2030.

Overall, about a third of the largest publicly traded companies (702) around the world are also working towards net-zero emissions. Some of the companies include:

• A.P. Moller (Maersk)
• Airbus Group
• PepsiCo, Inc.
• American Airlines GroupAAL
  Inc.
• Proctor and Gamble Co.
• Berkshire Hathaway
• Caterpillar Inc.
• Canadian Natural Resources Ltd.
• Siemens AG
• Ford
• Hon Hai

How to invest in a net-zero world

With most major companies signing up to achieve net-zero emissions, investors don’t have to do much to be part of the revolution. However, some investors might be interested in investing in companies that are moving faster toward this goal.

For example, 2030 is still seven years off. By investing in companies that will not be net zero by that time, it could be argued that those investments are hurting the environment.

One option for investors is to seek out companies that are committed to being green and have taken significant steps to achieve their goals. The downside to this option is that it can take a lot of research to find qualifying companies. Additionally, not all companies that have achieved net zero are worthy investments.

Another option is to let artificial intelligence (AI) do the work for you. Investors can invest in the Clean Tech Kit from Q.ai. This fund uses AI to spot trends in the market and invest in companies that are making noise. It lets investors save time by not doing the research themselves.

The bottom line

Reducing emissions to achieve net zero is a daunting task, but it’s one that we must take on to save our planet. The good news is that many companies and countries are already working towards this goal.

With the right policies in place, we can ensure that more businesses follow suit and do their part to reduce greenhouse gas emissions.

Download Q.ai today for access to AI-powered investment strategies.