Bangkok: An in-depth analysis of the PwC report reveals that while private companies are making strides in carbon reduction, the global macroeconomy is lagging in its response to the climate crisis.

According to Thai News Agency, the PwC Global Net Zero Economy Index report underscores a concerning discrepancy. While businesses are moving towards sustainability, the global carbon reduction rate is only 1.02% per year. This is far from the 17.2% annual reduction needed to keep global temperatures below the critical 1.5 degrees Celsius threshold stipulated by the Paris Agreement. The report highlights the challenges in restructuring hard-to-abate industries such as steel, cement, and shipping, which require significant technological overhauls and investments.

The motivation for businesses to pursue carbon reduction has shifted from regulatory compliance to competitiveness. CEOs are pushing forward with sustainability efforts despite uncertain government policies, recognizing carbon reduction as a new condition of trade. Global parent companies are indirectly enforcing emission standards, influencing entire supply chains. Suppliers who fail to adapt to these standards face exclusion from the global trading system, creating a market pressure more significant than legislation. Additionally, declining renewable energy costs offer businesses a way to stabilize costs amidst volatile fossil fuel prices.

International trade is being reorganized by measures such as Europe's Common Carbon Action Measures (CBAM), which act as tariffs against high-carbon-emitting goods. This reorganization signals that non-eco-friendly products may soon disappear from markets with high purchasing power.

However, the PwC report emphasizes that achieving private sector environmental goals requires policy clarity. Businesses need clear signals to invest in technologies like green hydrogen and carbon capture and storage (CCUS). Without policy certainty, businesses may delay action, further widening the gap between current efforts and necessary action.

The report concludes that the shift to a low-carbon economy is not merely a matter of Corporate Social Responsibility but a complete restructuring of the global economy. The gap between private sector performance and the urgency of climate issues indicates that the old economic system poses a risk. Carbon reduction is becoming a key factor in business resilience and long-term survival.