War in Ukraine to Slow Down U.S. Net Zero by Up to Three Years, According to New Study

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Apr 18, 2023, 08:00 ET

'The Decade That Matters 2.0' study also found that 98% of U.S. businesses either use, or plan to use, renewable energy

IRVINE, Calif., April 18, 2023 /PRNewswire/ -- American business leaders and policymakers (both 41%) believe the war in Ukraine could delay U.S. net zero goals by up to three years, but that some of the effects may have also accelerated renewable ambitions. According to the same new study, more than half of business leaders (56%) say rising energy prices have positively affected their sustainability ambitions.

BayWa r.e.'s 'The Decade That Matters 2.0' study surveyed more than 500 decision-makers from business and policy sectors across the U.S.— and 3,000 decision-makers worldwide. The study intends to help shine a light on sentiment around climate change and drive conversation and action on a global scale.

U.S. businesses demonstrate a steadfast commitment to renewable energy. Nearly all U.S. respondents (98%) highlight that they either use or plan to use renewable energy. This is the highest percentage of any country.

"Three years on from the first 'The Decade That Matters' study, and its sentiment is more relevant than ever. The impacts of the climate crisis are being felt globally, and this crisis does not care about recessions, policies, borders or the speed at which humanity can adapt," said Matthias Taft, CEO, BayWa r.e. AG

"The survey shows recognition of this urgency amongst the public, policymakers and business leaders. The war in Ukraine has simultaneously been a catalyst to speeding up the renewable transition, while also increasing short-term reliance on fossil fuels. While the direction of travel is clear, pace is crucial and any delay risks seeing the climate crisis exacerbated. While the transition has now sped up, fast is not yet fast enough."

The study finds that more than a third (38%) of U.S. business leaders expect the conflict and resulting energy disruption to cost their businesses up to 10% in associated costs. One in five leaders estimate an increase of between 11% and 20%.

A greenhouse divided

The study finds that business leaders blame a lack of U.S. leadership for hurting net zero goals. More than a third (36%) of U.S. business leaders cite 'a lack of commitment from U.S. leadership' as a considerable obstacle to a faster renewable transition, and 34% of respondents point the finger at 'a lack of support from the government'.

Policymakers in the U.S. disagree. Nearly half (a global high of 48%) of respondents say that 'the public and businesses do not appreciate the impact climate change will have on them' and that this is the main barrier to reaching net zero goals. The speed of adaptation of the public and businesses is the biggest issue, according to 44% of respondents.

Both groups agree on supply chain and trade policy issues. In fact, 35% of business leaders and 42% of policymakers identify the two areas as being key barriers to a faster energy transition.

"This report shows a growing urgency and impatience with the current pace of normalizing the renewable sector and creating new jobs in this field," said Gordon MacDougall, CEO of BayWa r.e. Wind Projects LLC. "The environmental accomplishments of the Inflation Reduction Act are worth celebrating. However, much more must be done, and BayWa r.e. stands ready to show the promise of renewable energy to communities throughout the U.S.—providing increased energy security, more high-paying jobs, and a commitment to sustainability."

Changing sentiment is driving action

The study also reveals a change in sentiment around climate change. Following the first 'The Decade That Matters' report in 2021, monthly mentions of 'net zero' more than quintupled to over 20,000. During the same period, sentiment has shifted, with overtly negative mentions of the term doubling from 10% to 20%, while clearly positive mentions have declined from 4% to 3%. This could indicate growing scepticism around current targets and action.

The term 'climate crisis' eclipsed 'global warming' as a talking point in late 2021, peaking at over 2.5 million online mentions—demonstrating a move from awareness to urgency. Notably, carbon-related mentions have increased by 130% from 2020 to 2022 as the debate intensifies. In 2022, coal became an increasingly important topic of conversation, with over a million mentions per month, following the war in Ukraine and the resulting energy crisis.

Other key findings from 'The Decade That Matters 2.0' include:

Decision makers in the U.S. are split on when the country is expected to fully transition to renewables. Specifically, 43% of policymakers said by 2030, while 42% of business leaders said after 2050.
According to U.S. policymakers, the most impactful step businesses can take to tackle the climate crisis is to respect and protect green spaces (39%), followed by sourcing energy from renewable sources (34%).
Negative online conversations around the term 'net zero' have doubled globally from 10 to 20%—pointing to growing scepticism around current targets.

BayWa r.e.'s 'The Decade That Matters 2.0':

BayWa r.e.'s 'The Decade That Matters 2.0' report is the result of research conducted on behalf of BayWa r.e. by Censuswide at the end of 2022, surveying over 3,000 business leaders and policymakers across the US, UK, France, Germany, Italy and Spain.

Alongside the research are insights into the conversations around climate change, compiled using Brandwatch social listening tools which helped analyse the state of play on a macro level, then drawing insights from over a billion mentions of key phrases online.

BayWa r.e. AG (BayWa r.e.):
At BayWa r.e. we r.e.think energy - how it is produced, stored and can be best used to enable the global renewable energy transition that is essential to the future of our planet.

We are a leading global developer, service supplier, distributor and solutions provider and have brought over 5 GW of energy online and manage over 10.5 GW of assets. We are also an Independent Power Producer with an expanding energy trading business.

BayWa r.e. works with businesses worldwide to provide tailored renewable solutions. Operating 100% carbon neutral, we are also committed to our own sustainability journey.

Every day, we are working hard to actively shape the future of energy in a diverse, equitable and inclusive workplace.

Our shareholders are BayWa AG, a €27.1 billion global business, and Energy Infrastructure Partners, a leader in energy infrastructure investment.

SOURCE BayWa r.e. USA LLC