Overview

Against the global backdrop of political uncertainty stemming from upcoming US election and the Brexit outcome, countries continue to lift the pace of decarbonisation in energy systems and develop long-term plans for a net zero emissions global economy.

This update focuses on progress post-Paris, particularly:

• Efforts ramp up to decarbonise energy systems: In North America, the leaders of Canada, the US and Mexico jointly announced a clean power target of 50 per cent by 2025 (the US and Canada have previously pledged to define their 2050 targets this year). In Asia, for example China, India, South Korea and Vietnam, many developing countries have been halting or reducing their coal station construction or announced plans to exit coal generation.
   
• Brexit is a distraction but European and UK climate commitments are solid: Brexit is unlikely to have any substantive impact on either the UK’s or the EU’s emission reduction efforts, as both have demonstrated significant commitment to climate action. Shortly after the Brexit vote, the UK legislated its Fifth Carbon Budget, which requires an emissions reductions target of 57 per cent below 1990 levels by 2030 (51 per cent below 2005 levels). This is significantly stronger than Australia’s current target of 26-28 per cent below 2005 levels.
   
• Progress on Paris Agreement continues: By the end of June, 178 countries had signed the Paris Agreement and 19 ratified it, with a further 32 countries, including China, the Unites States and Australia, intending to ratify it before the end of 2016.