The UN Sustainable Development Goals (SDGs) enhance health, ecology, vitality, and the global economy. This chapter carefully reviews scholarly literature to identify technological, economic, and sociological hurdles to a net-zero economy. It highlights this transformation's economic, social, and environmental benefits. This study provides empirical evidence and policy recommendations using case studies. The fundamental purpose is to aid governments and others in efficiently solving human problems for sustainable value. The need to address these challenges and seize chances to create a sustainable, net-zero future that ensures global prosperity and environmental health. Support governments and other relevant stakeholders in efficiently addressing human-related concerns to achieve optimal sustainable value. Finally, it accentuates the importance of addressing these issues and leveraging possibilities to achieve a sustainable, net-zero future that ensures global prosperity and ecological well-being.
TopIntroduction
The concept of the “Net Zero Economy1” (NZE) developmental practices has become a crucial and optimistic development in the universal efforts to combat climate change and environmental deterioration from a sustainable development perspective in this technological industrial 4.0 and beyond revolution (Sofuoğlu & Kirikkaleli, 2023). The fundamental objective of a NZE is to attain a nuanced equilibrium by endeavoring to diminish greenhouse gas emissions to a degree where any residual emissions are counterbalanced by initiatives aimed at extracting or storing an equivalent quantity of carbon dioxide from the environment (Khan & Al-Ghamdi, 2023). This transition signifies a significant transformation in the methods by which we generate, utilize, and oversee resources, with substantial consequences for our societies, economy, and the ecological well-being of our planet (Okorie et al., 2023).
Principally, this NZE notion involves a steadfast dedication to attaining a condition in which the overall release of greenhouse gases (GHGs), explicitly carbon dioxide (CO2), is balanced by reducing GHGs. The achievement of this complex objective requires a comprehensive overhaul across all sectors of the economy, encompassing the redefinition of energy production, resource utilization, industrial procedures, and other related aspects (Paraschiv & Paraschiv, 2023). The shift towards a NZE has significant ramifications for the global environmental context, serving as a crucial element in the battle against climate change and providing a holistic approach to attaining enduring environmental sustainability (Ahmed, 2023).
In the late 20th century, we witnessed a pervasive recognition of climate change as a global environmental concern. The establishment of scientific research and global deliberations, exemplified by the United Nations Framework Convention on Climate Change (UNFCCC)2 in 1992, provided the groundwork for tackling issues on climate change (Khurshid et al., 2023). Similarly, the Kyoto Protocol3 represents a notable milestone in global endeavors to address climate change. The agreement introduced legally enforceable greenhouse gas (GHG) reduction objectives for wealthy nations, therefore pioneering the notion of pledges to reduce emissions (Susanti & Yanti, 2023).
During the early 2000s, there was a notable increase in investments directed toward clean energy and renewable technology, encompassing various sources such as hydropower, wind, and solar. The advancements in these technologies have resulted in increased accessibility and economic viability (Chen et al., 2023). This is more evident when numerous enterprises have integrated sustainability into their corporate plans, motivated by environmental apprehensions and market exigencies for environmentally conscious products and practices (Mentes, 2023).
The Paris Agreement4, ratified in 2015, signifies a substantial international dedication to mitigating global warming. The objective was to establish a goal of maintaining global temperature rises at levels much below 2 degrees Celsius above those observed during the pre-industrial era to restrict the increase to 1.5 degrees Celsius (Mneimneh et al., 2023). The countries that have signed the agreement have committed to implementing actions aimed at decreasing emissions and strengthening their efforts in adapting to the impacts of climate change.
Figure 1. Energy-Efficient building materials