Decarbonization, Digitalization, and Deglobalization: These Are the Accelerating Trends of 2024–2025
The upcoming year represents a fundamental moment as half of the global population across 83 countries gear up for elections. This occurs during a time of profound global transformations, including Covid-19, conflicts in Ukraine and Palestine, and increased climate disasters. These factors have led to supply chain disruptions, economic instability, and escalating trade and political tensions, particularly between the US and China. Against this backdrop, decarbonization, digitalization, and deglobalization are all set to intensify in 2024 and 2025.
Decarbonization: The recently concluded COP28 (Climate Conference of the Parties) in the UAE in November/December 2023 succeeded bringing oil and gas producers to the table to address climate change challenges and participate in the green-growth revolution. The momentum toward achieving zero emissions by 2050 has gained traction despite serious delays, as countries acknowledge the high costs of climate inaction and the potential loss of competitiveness for those failing to adopt climate change mitigation and adaptation measures. To detail the risk further, Swiss Re, the leading Reinsurance Group, estimates that global climate change could reduce global GDP by 11–14%, or up to $23 trillion annually by 2050 if left unaddressed.
