Global Transition to Net Zero: Where Things Stand in Early 2026
As 2026 begins, the transition to net zero greenhouse gas emissions sits at an inflection point. On the one hand, technology deployment, investor activity, and global policy frameworks continue to advance. On the other, geopolitical shifts, economic constraints, and corporate backtracking underscore how difficult it is to turn ambitious climate goals into real-world emissions reductions. This article synthesises the latest transition-to-net-zero news, highlighting the key trends, policy developments, corporate commitments, and the obstacles that could shape climate outcomes over the next decade.
1. Corporate Climate Action: New Plans and Real Challenges
eBay Commits to Net Zero by 2045
In January 2026, eBay unveiled its first comprehensive climate transition plan, setting a corporate goal to achieve net-zero emissions across its value chain by 2045. The plan — validated by the Science Based Targets initiative (SBTi) — commits to reaching 90% reductions in both Scope 1/2 emissions and broader value-chain emissions by 2045, with interim targets for 2030 and a focus on renewable electricity procurement. eBay’s targets build on past success in achieving 100% renewable power in its facilities, with future efforts emphasising logistics and low-carbon transportation partnerships.
This announcement is significant not just because a major e-commerce platform is committing to net zero, but because it reflects the broader trend among global firms to formalise climate strategies that extend beyond operational emissions to include supply chain and customer-related impacts.
Corporate Progress and Persistent Gaps
Despite notable corporate commitments, broader assessments reveal mixed progress. Data from investor-led initiatives such as Climate Action 100+ show that while engagement efforts with high-emitting companies have yielded progress in areas like climate accounting and policy engagement, substantial gaps remain in corporate climate performance. Some sectors lag in translating pledges into measurable action.
Additionally, independent research highlights a persistent legitimacy gap: a small fraction of companies align spending with net-zero priorities — underscoring that emissions targets often outpace actual investments in decarbonisation.
2. Renewed Focus on Net Zero Standards
SBTi Releases Updated Corporate Net-Zero Standard
The Science Based Targets initiative (SBTi) has opened a second public consultation on its updated Corporate Net-Zero Standard. This iteration aims to strengthen scientific credibility and improve clarity around emissions scopes, transition planning, and corporate use of carbon credits. The updated draft could influence how companies align their pledges with real-world climate science.
Separate reporting from Carbon Pulse suggests that the new standard may include recognition for companies using carbon credits responsibly as part of transition plans — a contentious but increasingly relevant feature for firms balancing decarbonisation with operational realities.
The evolution of net-zero standards reflects an important shift: the narrative is moving from aspirational pledges toward methodologies that reward measurable, credible pathways.
3. Policy and Government Action: Progress, Pushback, and Delays
UK Net Zero Policy Developments
In the United Kingdom, the government continues to refine its approach to achieving net zero by 2050 — a legislated target that requires comprehensive emissions cuts across sectors. Recent policy documents demonstrate the evolving landscape of carbon budgeting and emissions reduction strategies.
However, political and economic challenges have hampered progress, with some analyses warning that the UK risks falling behind global peers in the net-zero transition due to funding gaps, innovation bottlenecks, and grid infrastructure challenges.
Innovative Legislation: Great British Energy Act 2025
A notable legislative development — the Great British Energy Act 2025 — establishes a government-owned energy company tasked with accelerating clean energy deployment and supporting net-zero goals. The Act provides a statutory basis for partnerships with private sector investors and seeks to catalyse domestic clean energy infrastructure.
Such policies illustrate how governments are experimenting with state-led and public-private strategies to accelerate transition efforts.
International Policy Frameworks
Internationally, the United Nations-led Net Zero Coalition demonstrates the breadth of global ambition, with more than 100 countries pledging net-zero emissions pathways covering a majority of global greenhouse gas output.
Meanwhile, research from organisations such as Climate Action Tracker suggests that although many countries have announced net-zero targets, only a small subset provides detailed pathways that meet “good practice” design principles necessary for credibility and eventual success.
4. Energy Systems and Infrastructure: Investments and Strategic Roadmaps
Utilities Investing Trillions at COP30
At COP30, global utilities outlined plans for substantial investment in clean energy infrastructure — nearly USD 150 billion in transition investments in the near term, with ambitions scaling to over USD 1 trillion as grid technologies and renewable capacity grow. This signal of capital deployment demonstrates private sector willingness to fund decarbonisation at scale.
Renewable Roadmap Proposals by IRENA
The International Renewable Energy Agency (IRENA) is preparing to propose a global strategy for managing the transition away from fossil fuels in advance of COP31. The roadmap aims to foster international cooperation to expand renewable technologies and sustainably restructure global energy systems.
These developments underscore that while emissions reductions remain complex, there is continued momentum around energy infrastructure investment and strategic planning.
5. Economic Debates and Political Backdrops
Bank of England Weighs Net Zero Economic Impacts
The transition debate often revolves not only around emissions targets but also economic impacts. The Governor of the Bank of England recently cautioned that net-zero policies could act as economic headwinds, influencing growth metrics amid broader challenges such as productivity and defence spending.
This perspective highlights the ongoing tension between climate policy urgency and macroeconomic stability — a major theme in policy circles worldwide.
Corporate Climate Backlash and “Greenhushing”
In parallel, some corporate leaders have become more circumspect in public climate messaging. For example, the CEO of Nestlé acknowledged that the company’s public attention to sustainability has waned in part due to shifting political and market dynamics — even as internal commitments to net-zero by 2050 remain intact.
This phenomenon — sometimes described as “greenhushing” — reflects a broader corporate recalibration where firms maintain climate strategies but are less vocal about them amid politically charged environments.
6. Sectoral Challenges: Fossil Fuel Dependency and Transition Frictions
Coal Extensions in Australia
In Australia, the country’s largest coal-fired power station has been permitted to operate two additional years beyond its planned closure — a move justified on grid security grounds but criticised by climate groups as a backward step.
This situation encapsulates a fundamental tension in many nations: balancing short-term energy reliability with long-term decarbonisation goals.
Oil Majors Scaling Back Low-Carbon Investments
In the energy sector, major oil companies like BP are recalibrating their portfolios — with announcements of significant write-downs in low-carbon assets and a renewed focus on traditional upstream operations. Such pivots highlight how market economics, investor returns, and energy demand realities sometimes conflict with ambitious transition narratives.
7. Innovation, Technology, and Climate Solutions
AI and Emissions Reductions
Beyond policy and financial commitments, new research suggests technology plays a crucial role in emissions mitigation. A study from the Grantham Research Institute at LSE finds that advanced applications of artificial intelligence across power systems, transport networks, and industrial processes could reduce global emissions by billions of tonnes of CO2 equivalent annually by 2035.
Energy System Scenarios and Long-Term Pathways
Reports like Shell’s Energy Security Scenarios reflect the complex future of energy systems, mapping potential trajectories to net zero and illustrating the interplay between fossil fuels, renewables, and emerging technologies. These scenarios provide valuable context for policymakers and investors navigating an uncertain transition landscape.
8. Sector-Specific Transition Dynamics
Decarbonising Shipping
One of the more challenging sectors is global shipping. The International Maritime Organization (IMO) has developed frameworks aiming for a net-zero shipping sector by 2050 — though political resistance has delayed formal adoption of emissions pricing mechanisms.
Residential and Building Electrification
Academic research highlights the role of building electrification in achieving net-zero goals, showing how residential electrification patterns and carbon budgets must be strategically managed to deliver meaningful emissions cuts across regions.
9. The Path Ahead: Momentum and Roadblocks
Net Zero Tracker and Accountability
The independent Net Zero Tracker monitors corporate and national climate targets, providing transparency into the extent to which pledges are backed by actionable plans. This tracking is critical in an era where ambition often exceeds implementation.
Jobs and Economic Opportunity in Transition
Finally, positive economic stories are emerging. For example, new analysis shows that the energy transition is likely to spur substantial global employment growth — one of the fastest expanding sectors globally — signalling economic opportunity alongside climate action.
Conclusion: Transition at a Crossroads
The net-zero transition in early 2026 is defined by both momentum and complexity. Corporate commitments and innovation provide hope, while political, economic, and sectoral realities underscore the formidable challenges ahead. With clear policy, capital mobilisation, and technology deployment, the global community can still shape a viable pathway to net zero — but success will depend on far more than pledges alone.
