Towards a Sustainable Net-Zero Future: Energy and Economic Transition Amid Global Warming

Abstract

As global temperatures continue to rise, there is an alarming increase in the severity and frequency of extreme climate hazards. The United Nations, responding to these dire changes, has advocated for a target of net-zero carbon emissions, a strategy aimed at pursuing efforts “to limit the temperature increase to 1.5°C above pre-industrial levels” (The Paris Agreement) and mitigating the devastating effects of global warming. This research delves into economic implications of these targets, leveraging comprehensive data that encompass carbon emissions, temperature, renewable energy, and vital economic indicators. Utilizing the RCP scenarios, we provide a nuanced projection of future climate under varying socio-economic and radiative conditions. The analysis of economic indicators can help predict the overall level and change trend of carbon emissions more reasonably, which can provide important decision-making support for the government to formulate environmental protection policies and enterprises to carry out carbon emission reduction work. At the same time, economic indicators can also help assess the changes in the carbon trading market, and play an important guiding role for enterprises and investors to conduct carbon emissions trading. Our findings underscore the intricate relationship between stringent carbon management practices and their potential economic ramifications, which include both the promise of increased market value for businesses and bolstered resilience against climate-induced threats. Bridging historical observations with future-orientated projections, this study serves as a beacon for policymakers and stakeholders alike. It emphasizes the critical need to advance sustainable development within a net-zero carbon framework, ensuring a comprehensive strategy for global warming adaptation and mitigation.