Achieving net zero emissions by 2050, once a rallying cry for climate action, is facing growing skepticism. While investments in renewables and clean technologies continue, a recent survey suggests energy executives are increasingly doubtful.

Bain & Company’s survey Energy & Natural Resource Executive Pulse found that 62% of industry leaders now believe net-zero will be achieved by 2060 or later, compared to 54% last year. This significant increase highlights concerns about the financial viability of the energy transition.

According to the report, most remain committed to investing in their transition-oriented growth businesses, but ROI challenges are intensifying.

Despite ongoing investments in hydrogen and lithium, 70% of executives cited customer affordability as a major hurdle. “Companies are focusing on projects with a viable ROI path,” said Joe Scalise, head of Bain & Company’s Energy and Natural Resource practice.

The report found that executives in the Middle East, Asia-Pacific, and Latin America feel increasingly optimistic about their energy transition–related businesses.

This shift in focus may explain the growing optimism among executives in the Middle East, Asia-Pacific, and Latin America who feel increasingly optimistic about their energy transition–related businesses, where renewables and other clean technologies hold promise for future growth.

The survey also explores the increasing role of digital technologies in the energy sector. Artificial intelligence (AI) is a key driver of transformation, with 65% of executives believing it will significantly impact their businesses by 2030.

While AI offers potential for improving operations and maintenance, executives still need to be convinced of its ability to directly address emissions reduction, likely due to AI’s energy consumption needs.

Industry leaders believe GenAI has the potential to improve maintenance, production, and supply chains, among other areas.

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