Carbon Tracker’s fifth annual analysis of the risk of investing in oil and gas producers – warns investors that companies have not woken up to the “seismic implications” of the International Energy Agency’s finding that no investment in new oil and gas production is needed if the world aims to limit global warming to 1.5°C.
In this report we primarily focus on modelling the International Energy Agency’s Sustainable Development Scenario (SDS), associated with 1.65°C of warming. We also show the implications of the IEA’s new, more stringent Net Zero Emissions by 2050 Scenario (NZE), which targets 1.5°C of warming. Both scenarios result in net zero emissions, but at different times and through different means. For comparison, we also include the Stated Policies Scenario (STEPS), which we use to represent a high-demand or business-as-usual pathway resulting in 2.7°C of warming.