Energy industry leaders are committed to net-zero goals, but insufficient planning and high costs may prevent achievement, according to AlixPartners Energy Industries Transition Survey

NEW YORK (March 19, 2025) – Global consulting firm AlixPartners’ inaugural Energy Industries Transition Report, Solving the Energy Transition Paradox, found that executives’ net zero optimism is high, but insufficient planning and ambiguous metrics can lead to missed milestones.

Energy sector business leaders are confident in their ability to achieve net zero emissions by 2050, but the goal varies by sector and seems harder to achieve as hurdles pile up and success is pinned to consumer intentions and regulation. The inaugural Energy Industries Transition Report from AlixPartners, a global study covering almost 400 CEOs and other industry leaders in the energy value chain, found almost 80% expect to achieve their net zero goals, but that confidence is underpinned by an expectation that customers will pay a premium for sustainable sources.

Potentially further eroding that confidence are the challenges presented by an ever-shifting political and regulatory environment and often woefully insufficient planning linked to targets, according to the survey of energy and process industries leaders representing power and utilities, renewables, oil and gas, chemicals, engineering and construction, industrial services, and metals and mining. 

 Survey highlights include:

• Almost three quarters of companies have high confidence of hitting goals by 2050.
  75% have not established quantitative net-zero goals and clear timelines required to achieve success.
  More than 90% of metals and mining executives expect to achieve the targets.
• Confidence from respondents in reaching net-zero is pinned to consumers paying a higher premium for lower carbon products and services, but importantly there is little evidence to support this expectation.
• Downstream oil and gas executives are the most cautious about commitments.
• Half of renewables companies don’t expect to meet goals.

“With nearly three quarters of responding companies believing in their ability to achieve net zero, but only 24% having quantitative goals and timelines in place, it remains to be seen if these goals are feasible and achievable by 2050,” says Vance Scott, Global Co-Leader of Energy & Process Industries at AlixPartners.

The ambitious commitment to net zero reflects a significant shift within the industry to balance growth and innovation with environmental responsibility. It’s fraught with challenges, including technology adaptation, economic pressures and regulatory uncertainty, especially because regulation and government support are seen as critical drivers of net zero success or failure.

The most committed companies and sectors anticipate that consumers and businesses are willing to pay a premium for low carbon products and services, according to the survey. However, there’s little evidence so far to support this theory. 

“The commitment to reaching net zero in 2050 shows a significant shift in long-term strategies for energy companies. While commitment remains, readiness varies greatly among subsectors, and much of the confidence exhibited in the survey was reliant on the expectation that consumers are willing to pay a premium for lower carbon products and services, but history tell us there is little to no evidence to support this expectation,” said Matt McCauley, Global Co-Leader of Energy & Process Industries at AlixPartners.

 Metals & Mining leads the pack

The metals and mining sector is the most confident sector in terms of hitting targets and securing price premiums, perhaps due to underlying demand for commodities such as copper, nickel and lithium to develop new power transmission networks and AI data centers. This optimism in the energy-intensive mining sector reflects its ongoing investment in technology, including green hydrogen and equipment electrification. A fifth of the top 30 global mining companies expect to meet net-zero targets before 2050.

 Caution among downstream O&G producers

Downstream oil and gas producers were cautious about achieving 2050 targets, reflecting the immaturity of some technologies to reach commercial scale. The sector’s complex emissions footprint has made it challenging and costly to develop metrics.

Renewables companies are the least confident. Much of the renewables sector has been thrown into flux by the prospect of future policy changes. This could further challenge the subsector’s ability to reach net zero targets, with less than a third of those polled before the election expecting net-zero targets to be achieved by 2050. The challenge of integrating renewable sources into power grids only adds to the murky regulatory outlook. Stay tuned.

To access the full report, Solving the Energy Transition Paradox, please click this link.

About AlixPartners

AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully capitalize on opportunity and address critical challenges. Our clients include companies, corporate boards, law firms, investment banks, private equity firms, and others. Founded in 1981, AlixPartners is headquartered in New York and has offices in more than 20 cities around the world. For more information, visit https://www.alixpartners.com.

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