2021 in Review: Progress and Challenges on the Path to Net Zero
A comprehensive look at 2021's milestones, policies, controversies, and innovations in the global journey toward net zero emissions.
Throughout 2021, the global movement toward net zero emissions became a central priority for governments, industries, and climate advocates. The year was marked by a surge in pledges, bold policy proposals, ongoing debates about accountability, and new innovations—all underscored by the urgency of the climate crisis. This review explores the key developments, controversies, and lessons from a year that both accelerated action and exposed enduring obstacles.
What Net Zero Means — and Why 2021 Was Pivotal
“Net zero” refers to balancing the amount of greenhouse gases emitted into the atmosphere with an equivalent amount removed, resulting in no incremental addition. The concept hinges on two main approaches:
- Emissions reduction: Cutting the amount of greenhouse gases produced by switching to renewables, improving efficiency, and transforming sectors like transportation and agriculture.
- Carbon removal: Drawing down residual emissions through methods such as reforestation, carbon capture, and emerging negative emissions technologies.
2021 saw net zero become the overriding metric for both public and private sector climate action, with world leaders setting new targets and businesses integrating “net zero by 2050” into their strategic planning frameworks.
Pledges, Policy Announcements, and Political Milestones
The year brought an unprecedented wave of new climate pledges:
- Major economies including the United States, European Union, China, and Japan revised or reiterated net zero pledges, often with more immediate targets for 2030.
- Over 130 countries committed to net zero or discussed it as a national goal by various dates—most by 2050, though some (such as China and India) set goals for 2060 or 2070, respectively.
- Sub-national actors—from cities to states and provinces—enacted detailed net zero plans, often moving faster than federal governments.
- Corporate net zero commitments proliferated, with thousands of companies pledging carbon-neutrality timelines and emission reduction targets in line with science-based criteria.
These commitments galvanized public attention and market momentum, but also invited scrutiny over their credibility and clarity.
COP26: The Climate Summit in Focus
The UN Climate Change Conference in Glasgow (COP26) was the year’s most critical event, where negotiators sought to align global ambition with the Paris Agreement targets. Key outcomes included:
- A “Glasgow Climate Pact” that urged countries to strengthen 2030 emissions targets in 2022
- Agreement to “phase down” unabated coal use, though language was weakened from “phase out”
- Pledges to halt deforestation and reduce methane emissions by 2030, with major emitters signing on
- Commitments to climate finance for developing countries, though questions about adequacy and implementation remain
While COP26 achieved some progress, advocates and experts viewed the summit’s outcomes as insufficient for limiting warming to 1.5°C, highlighting the need for more ambitious action and transparent follow-through.
The Rapid Evolution of Corporate Net Zero Initiatives
Private sector enthusiasm for net zero goals exploded in 2021, with companies across industries adopting public-facing emissions targets. Key trends included:
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- Sector-wide alignment with the Science Based Targets initiative (SBTi), setting requirements for credible pathways
- A surge in sustainability reporting and climate disclosures, driven by investor pressure and regulatory signals
- Growth in climate-neutral products and “carbon offset” programs, though questions about their rigor persisted
- Heightened interest in low-carbon innovation, from renewable energy sourcing to circular economy practices
Prominent firms announced new “net zero by 2040” or “net zero by 2050” timelines. However, critics warned of greenwashing and a lack of detail, especially regarding transparency around emissions data and accountability for future promises.
Breakthroughs, Controversies, and Unmet Promises
The race to net zero was not without setbacks and debate:
- Accounting controversies: Discrepancies emerged regarding what counts as “net zero,” which scopes of emissions are included, and how offsets are accounted for.
- Reliance on offsetting: Companies and countries increasingly relied on purchasing reduction credits or offsetting residual emissions rather than actual reductions, sometimes favoring short-term fixes.
- Equity concerns: Critics noted that rich nations and corporations could offload mitigation burdens onto developing regions or vulnerable communities through offsetting and supply chain outsourcing.
- Implementation gaps: Many pledges lacked clear interim milestones, meaning concrete action was often delayed in favor of distant end-dates.
- Technology optimism: Heavy focus was placed on unproven tech like direct air capture and carbon capture and storage (CCS), at times distracting from immediate emissions cuts through existing solutions.
Major Net Zero Trends and Headlines of 2021
Moving Beyond Fossil Fuels
Phasing out coal, oil, and gas remained both a central focus and persistent challenge. 2021’s highlights included:
- Powerful calls for coal phase-out and investment restrictions on new coal-fired plants, especially in Europe and parts of Asia
- Global financial institutions increased scrutiny of fossil fuel investments, with some major banks divesting from coal and oil projects
- Natural gas continued to be promoted as a ‘transition fuel,’ sparking debate over its place in net zero scenarios
- Several countries—including the US—announced plans to reduce public subsidies for fossil fuels, a critical but highly politicized step
The Rise and Scaling of Renewables
The rapid expansion of solar and wind energy was a defining feature of 2021. Key developments:
- Solar and wind set new records for installed capacity worldwide, becoming cost-competitive against fossil fuels in many markets
- Global initiatives, such as the International Energy Agency (IEA) “Net Zero by 2050” roadmap, called for a doubling of renewable investments every year through 2030
- Battery storage and grid modernization projects accelerated, aiming to address intermittency and increase renewable penetration
- Debate intensified around land use, local opposition, and material supply chains needed to sustain renewable growth
Nature-Based Solutions & Carbon Removal
With hard-to-abate sectors like aviation and agriculture expected to generate residual emissions, 2021 saw increased emphasis on nature-based and engineered carbon removal methods:
- Investments in reforestation, soil carbon sequestration, and coastal restoration projects rose, though permanence and measurement pose ongoing challenges
- Interest in engineered carbon removal (e.g., direct air capture) grew, with new demonstration projects announced but questions remaining about scale, cost, and energy use
- Controversy surrounded the effectiveness and ethics of offset markets, especially regarding offsets generated in vulnerable regions
Transforming Transportation
The global push towards electric vehicles (EVs) and sustainable mobility accelerated in 2021:
- Major automakers set electric vehicle targets, with several announcing the end of internal combustion engine development by the 2030s
- Governments expanded incentives for EV adoption and infrastructure, ramping up investment in public charging networks
- Progress toward zero-emission heavy transport remained slow, with attention to sustainable aviation fuels, hydrogen, and shipping efficiency
Buildings, Efficiency, and Retrofits
Buildings accounted for a significant share of emissions in 2021, spotlighting the need for large-scale efficiency upgrades and retrofits:
- Policymakers promoted “retrofit revolutions” for existing buildings, focusing on insulation, heat pumps, and smart energy management
- Green building certifications and low-carbon construction materials gained traction in real estate and architectural sectors
- The challenge of retrofitting at scale and addressing affordability for low-income households remained a focal policy concern
The Challenges of Accountability, Equity, and Implementation
While net zero pledges made headlines, the year exposed persistent problems in accountability and fairness:
- Lack of standards: No globally agreed standard defined credible net zero pathways or required emissions reporting, complicating comparisons and oversight
- Transparency gaps: Many organizations failed to disclose full emissions footprints, especially around Scope 3 (value chain) emissions
- Equitable transition: Calls grew for a “just transition” to support workers and communities impacted by the transition away from high-emissions industries
- Global climate finance: Wealthy nations fell short of delivering on climate finance promises to developing countries, a major topic at COP26 and a barrier to global cooperation
Lessons Learned for the Future: What 2021 Taught Us
- Pledges must become policy: Momentum cannot substitute for real, legally binding action and near-term emissions cuts
- Watch the details: Transparent tracking, third-party verification, and clear definitions will distinguish real leadership from greenwashing
- The scale is massive: Achieving net zero requires trillions in annual investment, major political will, and cross-sectoral transformation
- Equity matters: Addressing fairness—between nations, generations, and communities—remains central to both effectiveness and legitimacy
- Innovation is essential: Both rapid deployment of mature solutions and investment in breakthrough technologies are needed, but solutions must be tailored to local contexts
Frequently Asked Questions (FAQs)
Q: What is net zero, and why is it important?
A: Net zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions balanced by removing an equivalent amount from the atmosphere. It is considered crucial for stabilizing the climate and meeting the Paris Agreement’s 1.5°C target.
Q: How do countries and companies actually achieve net zero?
A: Most plans involve a mix of rapidly reducing emissions from sources like fossil fuels and transportation while investing in carbon removal such as reforestation or technological solutions. Credible paths require measurable milestones, independent verification, and robust policy frameworks.
Q: Are carbon offsets effective at fighting climate change?
A: Carbon offsets can play a role, but their effectiveness depends on project quality, permanence, and proper accounting. Overreliance on offsets is controversial, as it can delay direct emissions reductions and risk insufficient outcomes.
Q: What are the main criticisms of net zero pledges?
A: Common criticisms include vague targets, delayed timelines, lack of enforceable interim steps, overdependence on future technologies, and insufficient attention to fairness between countries and communities.
Q: How did COP26 influence the net zero movement in 2021?
A: COP26 produced new agreements on coal, methane, and deforestation and called for increased climate ambition, but many saw the summit as a qualified success, pushing pledges forward without full accountability or finance for the world’s most vulnerable.
Net Zero in Numbers: 2021 Snapshot
| Indicator | Value / Status | Notes |
|---|---|---|
| Countries with net zero pledges | 130+ | Varied target years and legal status |
| Corporate net zero commitments | Thousands | Across industries, with mixed credibility |
| Global installed solar/wind capacity (2021) | New records set | Driven by falling costs, policy support |
| COP26 finance goal shortfall | Billions USD | Failure to meet $100B/yr finance promise |
Conclusion: The Road Ahead for Net Zero
2021 was both a year of significant progress and a sobering reminder of the scale, complexity, and urgency of the climate crisis. The net zero movement is maturing, but its success will depend on concrete action—rapid, equitable, and transparent—rather than distant promises. Lasting climate stability requires not just ambitious targets, but real systems change, financial investments, and inclusive, accountable leadership at every level of society.
References
- https://www.mckinsey.com/~/media/mckinsey/business%20functions/sustainability/our%20insights/the%20net%20zero%20transition%20what%20it%20would%20cost%20what%20it%20could%20bring/the-net-zero-transition-what-it-would-cost-and-what-it-could-bring-final.pdf
- https://www.bi.team/wp-content/uploads/2023/01/How-to-build-a-Net-Zero-society_Jan-2023-1.pdf
- https://scholarlycommons.law.wlu.edu/context/wlulr/article/4771/viewcontent/Lin_v79n2_679_767.pdf
- https://www.nature.com/articles/s41558-021-01245-w
- https://www.annualreviews.org/content/journals/10.1146/annurev-environ-112320-105050
- https://www.tandfonline.com/doi/full/10.1080/13675567.2024.2359058
- https://academic.oup.com/oxrep/article/39/4/779/7425298
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