There is growing pessimism among energy and natural resources (ENR) executives regarding the speed of decarbonisation.
Although the past year saw record investment in clean energy, nearly half (44%) of surveyed leaders now anticipate achieving net-zero emissions by 2070 or later—up sharply from 31% the previous year.
Only 32% believe the world can reach net zero by 2050, reversing earlier trends that forecast more rapid progress.
A new survey from Bain & Company collated insights from 700 industry leaders across oil and gas, utilities, chemicals, mining and agribusiness.
These findings reveal multiple hurdles derailing net-zero ambitions, including tighter budgets, the reluctance of shareholders to accept higher costs and uncertainty in government policy and regulation.
Significantly, oil and gas executives pinpoint around 2038 as the year for peak oil demand.
Despite the push for clean energy, industry leaders expect traditional assets to persist well into the next decade.
At the same time, more than three-quarters of respondents noted capital project costs have risen over the past year, with one in ten experiencing increases exceeding 20%.
Consequently, many companies plan to reassess their project portfolios and leverage technologies such as AI to enhance project execution and outcomes.
Yet optimism remains in several emerging technologies.
Around 72% of surveyed executives are optimistic about AI and digital tools for improving efficiency and profitability. Renewables, energy storage and circularity also garnered increased support, reflecting a measured faith in innovative solutions to drive the energy transition.
Overall, though net zero may not be attained as quickly as originally forecasted, executives remain hopeful that innovation, strategic investment and a relentless focus on long-term goals will eventually deliver meaningful climate progress.
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