The IMF’s climate “Chart of the Week” showed encouraging reductions in emission intensities within the G20’s agriculture and industry sectors, including areas like electricity, mining, and water. Since these sectors represent over 75% of G20 emissions and are highly carbon-intensive, these declines indicate progress toward cleaner energy sources, advanced technology use, and improved energy efficiency. Still, more granular data is essential to fully understand how different industries and economies are adapting—a goal of the G20 Data Gaps Initiative.
Nevertheless, the current reductions still miss the necessary climate targets, calling for stronger efforts for emission intensities to approach zero, while sustaining economic growth. The 2023 IPCC report highlights that global emissions must fall by at least 43% from 2019 levels by 2030 to prevent warming beyond 1.5°C.
One persistent obstacle though is data gaps, as most G20 economies lack consistent, detailed emissions data, complicating effective management and policy decisions. Furthermore, a complete view of global progress requires recognizing emissions reductions achieved by offshoring pollution-intensive production outside the G20. This issue demands a global perspective to ensure accurate carbon footprint assessments. The G20’s third-phase initiatives to standardize emissions reporting aim to integrate economic policies with environmental goals. As data practices improve, they will better support countries in measuring and managing their environmental impact in line with sustainable objectives.
The optimism persists when observing the reduction in emissions, as it lays a foundation of climate change management, though slow. In knowing such possibilities, exponential reduction in emissions may be well within reach.
This article was contributed by Malak Badawy of FCC partner IASP
