When you invest, your capital is at risk.

by Stella Ong


More than 190 countries have pledged to reduce carbon emissions to net zero by 2050. Here’s how lives need to change for it to happen.

Carbon dioxide emissions increased 19-fold over the last century, resulting in a 1°C rise in the average global surface temperature. Without actions to back commitments to net zero, which is when greenhouse gas (GHG) emissions produced are completely offset by emissions removed from the atmosphere, those temperatures may go up by as much as 4.8°C by 2100. This would have major consequences.

So what needs to happen? The experts are pointing to a complete lifestyle transformation.

Petrol and diesel vehicles must be fully replaced by electric and hydrogen counterparts by 2035. Several car manufacturers have pledged to stop the production of petrol vehicles in the near future. Roads will also need to adapt; see $SIEGY’s eHighway that allows for electrified freight transport. Aviation will have to rely more on renewables as well, using innovations like the hydrogen fuel cells that $BA and $EADSY are currently developing. 

Likewise, at least 95% of all homes will have to be powered by renewables, with your fridges and dryers adopting heat-pump technology. Houses built after 2025 should no longer be connected to a gas grid, with older dwellings needing to replace gas boilers. And speaking of construction, steel and cement manufacturers – responsible for 7% of global GHG emissions – will either have to stop using coal for energy, or risk losing market share to the more sustainable cross-laminated timber that aims to replace concrete. 

Even our diets need to change. Beef, lamb and dairy consumption must be cut by 20%, since meat and livestock contribute 60% of the food industry’s emissions. 

With a tight deadline of 27 years, governments are expected to double down on both implementing policies and granting subsidies. In fact, the World Bank estimates global investments of US$90t are required for net zero to happen. 

No wonder environmental, social and governance factors are more important than ever in investors’ decisions of which stocks to buy.

Portrait photo of Stella Ong, Markets Analyst at Stake.

Stella Ong

Markets Analyst

Stella is a markets analyst and writer with almost a decade of investing experience. With a Masters in Accounting from the University of Sydney, she specialises in financial statement analysis and financial modelling. Previously, she worked as an equity analyst at Australian finance start-up, Simply Wall St, where she took charge of the market insights newsletter sent out to over a million subscribers. At Stake, Stella has been key to producing the weekly Wrap articles and social media content.


Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.

Stake logo
Over 7,000 5-star reviews
App Store logoGoogle Play logo

Subscribe to our free newsletters

By subscribing, you agree to our Privacy Policy.

Stake is the trading name of Hellostake Limited, a company registered in England and Wales (Company no. 11676409). Hellostake Limited is authorised and regulated by the UK Financial Conduct Authority under the Firm Reference Number 830771. Registered address: 85 Great Portland Street, London, W1W 7LT, United Kingdom.

When you invest, your capital is at risk.

The value of your investments can go down as well as up and you may receive back less than your original investment. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate independent taxation and legal advice. The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services.

At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Please view ourTerms & Conditions,Privacy PolicyandDisclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance

Copyright © 2024 Stake. All rights reserved.