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Title: THE NET-ZERO TRANSITIONAL COST FOR MULTIPLE SECTORS IN THE ECONOMY AND THE ASSOCIATED CHALLENGES TO ACHIEVE THIS TARGET
Authors: Pratham Batra
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Pratham Batra KIIT international school
MLA 8 Batra, Pratham. "THE NET-ZERO TRANSITIONAL COST FOR MULTIPLE SECTORS IN THE ECONOMY AND THE ASSOCIATED CHALLENGES TO ACHIEVE THIS TARGET." Int. j. of Social Science and Economic Research, vol. 9, no. 3, Mar. 2024, pp. 858-880, doi.org/10.46609/IJSSER.2024.v09i03.014. Accessed Mar. 2024. APA 6 Batra, P. (2024, March). THE NET-ZERO TRANSITIONAL COST FOR MULTIPLE SECTORS IN THE ECONOMY AND THE ASSOCIATED CHALLENGES TO ACHIEVE THIS TARGET. Int. j. of Social Science and Economic Research, 9(3), 858-880. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i03.014 Chicago Batra, Pratham. "THE NET-ZERO TRANSITIONAL COST FOR MULTIPLE SECTORS IN THE ECONOMY AND THE ASSOCIATED CHALLENGES TO ACHIEVE THIS TARGET." Int. j. of Social Science and Economic Research 9, no. 3 (March 2024), 858-880. Accessed March, 2024. https://doi.org/10.46609/IJSSER.2024.v09i03.014.
References [1]. “Accelerating the Net-Zero Transition.” McKinsey & Company, www.mckinsey.com/capabilities/sustainability/how-we-help-clients/accelerating-the-net-zero-transition. [2]. Azoulay, Mark, et al. “Financing the Net-Zero Transition: From Planning to Practice.” McKinsey & Company, McKinsey & Company, 13 Jan. 2023, www.mckinsey.com/capabilities/risk-and-resilience/our-insights/financing-the-net-zero-transition-from-planning-to-practice. [3]. “Decarbonizing the World’s Industries: A Net-Zero Guide for Nine Key Sectors.” McKinsey & Company, 2022, www.mckinsey.com/capabilities/sustainability/our-insights/decarbonizing-the-world-industries-a-net-zero-guide-for-nine-key-sectors. [4]. “Innovate to Net Zero.” McKinsey & Company, 2022, www.mckinsey.com/capabilities/sustainability/our-insights/innovate-to-net-zero. [5]. Krishnan, Mekala, et al. “An Affordable, Reliable, Competitive Path to Net Zero.” McKinsey & Company, 30 Nov. 2023, www.mckinsey.com/capabilities/sustainability/our-insights/an-affordable-reliable-competitive-path-to-net-zero. [6]. Krishnan, Mekala, et al. “Insights on the Net-Zero Transition.” McKinsey & Company, 2022, www.mckinsey.com/capabilities/sustainability/our-insights/insights-on-the-net-zero-transition. [7]. Krishnan, Mekala, et al. “The Net-Zero Transition: What It Would Cost, What It Could Bring.” McKinsey & Company, 2022, www.mckinsey.com/business-functions/sustainability/our-insights/the-net-zero-transition-what-it-would-cost-what-it-could-bring. [8]. “Nationally Determined Contributions (NDCs) The Paris Agreement .” Unfccc.Int, United Nations Climate Change (UNFCCC), unfccc.int/process-and-meetings/the-paris-agreement/nationally-determined-contributions-ndcs. [9]. “What Is Net Zero?” McKinsey & Company, 28 Nov. 2022, www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-net-zero.
ABSTRACT: Persistent development in technology by mankind has directed the human race to the point of jeopardizing the unique scenario that has brought in this progression; the equilibrium of our planet's climate. Global warming which is a consequence of greenhouse gas emissions and these emissions not being offset by reductions is now an international concern. To prevent the hazardous outcomes of global warming and to conserve our planet to support life, the International Treaty on Climate Change, the Paris Agreement in 2016 targeted to preserve the average long-term surge in global temperature to 1.5°C above pre-industrial levels. Acknowledging these implications would require reducing global carbon emissions by 50% nearing 2030 and a further contraction to net-zero by 2050. Hence, it is crucial to attain net-zero would and this would imply an absolute adaptation of the global economy, as it would mandate substantial transformations in the major energy and landuse scenarios that generate a majority of the earth’s emissions, namely power generation, industrial processes, mobility and transportation, residential and commercial buildings, agriculture, forestry and additional land-use, and waste generation and accumulation, that generate approximately 85% of overall hazardous emissions. Furthermore, this transition would encompass the economic consequences on market demand, capital distribution, expenses on physical assets and direct and indirect employment opportunities in various economic sectors. This research highlights the need for such a transition and the social and economic costs related to this evolution. The study elaborates on the expenditure for modifying physical assets for energy and land usage procedures and their relevant percentage share of GDP for developed and developing economies, the average delivered cost of electricity using clean energy resources and how nations with lower GDP per capita and fossil fuel-producing nations are likely to have greater transition exposure. It also brings to light the significant archetypes of nations founded on the typical essence of their transition exposure and the cumulative investments for the future as per the Network for Greening the Financial System (NGFS) net-zero scenario. This paper concludes with solutions on how to unravel this net-zero balance through essential and interrelated system-level prerequisites that are crucial for this evolution and modifications.

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