The Russia-Ukraine war has the potential to derail the world from its path toward net zero, according to a new report by MSCI.
Some of the world’s largest economies, especially in Europe, are aiming to cut their dependency on Russian energy, potentially leading to higher emissions in the future as they turn to more emissions-intensive sources — notably shifting from gas to coal, according to MSCI. If Europe were to replace all Russian gas imports with coal, emissions could rise by as much as 0.8 gigatons of carbon dioxide equivalent in the first year.
This has already occurred in places such as India, where higher energy prices and supply-chain uncertainties have led to an increased use of coal.
MSCI says a near-term increase in global greenhouse-gas emissions is likely if Western countries replace Russian gas supplies with coal and Russia continues to sell fossil fuels elsewhere.
The report urges investors to play a key role in forging the path towar