The Business Breakthrough Barometer 2024 is a new flagship report providing unique insights from leading businesses on the current pace of the net zero transition, business opportunities and where governments can best focus efforts to create stronger market incentives for investment.
Developed by WBCSD with the support of Bain & Co, the Breakthrough Agenda, Marrakech Partnership and Race to Zero, this first annual pulse check covers sectors responsible for 70% of emissions, including power, transport, steel, cement, buildings, hydrogen. Based on survey data, interviews, sector dialogues and latest trends, the Barometer provides an overview of the state-of-play of the energy and industry transitions in 2024 and concise summaries for each sector on the action business is taking, the barriers they are facing and what is required to scale-up investment faster.
The first annual Business Breakthrough Barometer highlights:
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Business are most positive about the prospects for the power transition, with over 80% indicating that the Breakthrough Agenda goal to make clean power the most affordable and reliable option for all countries to by 2030 could be met, driven by massive investments and falling material prices. Leaders across sectors stress the importance of renewable power for the broader transition.
Of all the energy demand sectors, businesses are most positive about the road transport sector transition, with emerging markets rapidly gaining a share of EVs. 19% believe the sector is mostly on track for a Paris-aligned transition but concerns persist around the build-out of charging infrastructure.
The shipping sector is future-proofing the fleet, with 9% of the 2024 order book capable of operating on net-zero fuels. But operators warn that the transition hangs in the balance due to the slower-than-required pace of scale-up of net-zero fuels, such as green methanol and ammonia.
Airlines have seen an explosion in sustainable aviation fuel (SAF) deployment, expected to grow by 165% this year fuelled by rising voluntary demand and policy action. But aviation leaders are concerned that SAF markets will remain extremely tight over the next decade due to the lack of investment in supply and feedstock constraints
Sector leaders report a surge in capital commitments for near zero steel, with a 150% increase in the pipeline over the past year. However, 60% express little to no confidence in meeting the 2030 Breakthrough Agenda goal to make near-zero emission steel the preferred choice in global markets by 2030, with concerns over the high costs of green hydrogen and the slow progress of investment and scale of deployment.
The sector is grappling with the challenge of a limited market share for low-carbon products. Businesses emphasize the high production costs and the need for public procurement support as significant barriers to investment. Despite the challenges, frontrunners are optimistic about the path forward, with71% reporting increased confidence in governments ability to support and enable the transition.
Confidence in the chemical sector’s transition is among the lowest across all sectors as limited policy push or demand pull exists to incentivize low greenhouse- gas emissions chemicals. Companies highlight the need for clearer regulatory frameworks to drive investment in low-emission production methods.
Most business leaders see the sector as off course for net zero, and businesses are concerned about the recent slowdown in global energy efficiency investments. Leaders emphasize that customer reluctance to invest upfront in residential and commercial retrofits remains a significant barrier despite potential savings. Businesses stress policy signals have been mixed, and that greater focus on embodied carbon is needed looking forward.
The hydrogen sector is seeing increased interest with a surge in project announcements. However, high costs and limited demand continue to hinder substantial investments. Leaders emphasize the importance of developing clearer policy frameworks to facilitate the transition and scale the adoption of hydrogen technologies effectively.
The sustainable fuel sector is increasingly positive about the investment environment, driven by recent policy shifts. However, companies remain deeply concerned about limitations in feedstock supply. Businesses highlight the need for clarity in regulations and support to scale novel production technologies.
The sector has seen explosive growth this year in manufacturing capacity, with over 800 GWh of new projects announced largely by Chinese manufacturers. Despite concerns over rising trade tensions, businesses believe that the supply increase and cost reduction of more than 40% will have dramatic effects across sectors, particularly benefiting mass-market battery electric vehicles
