Race to Net Zero: Carbon Neutral Goals by Country
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Race to Net Zero: Carbon Neutral Goals by Country

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The following content is sponsored by the National Public Utilities Council

Race to Net Zero: Carbon Neutral Goals by Country

The time to talk about net zero goals is running out, and the time to put them into action is well underway.

At the U.S. Climate Summit in April 2021, U.S. President Biden pressured countries to either speed up carbon neutral pledges, or commit to them in the first place.

It’s a follow-up to the Paris Agreement, which keeps signatories committed to reaching carbon neutrality in emissions in the second half of the 21st century. But 2050–2100 is a wide timeframe, and climate change is becoming both increasingly present and more dire.

So when are countries committed to reaching net zero carbon emissions, and how serious is their pledge? This infographic from the National Public Utilities Council highlights the world’s carbon neutral pledges.

The Timeline of Carbon Neutral Targets by Country

The first question is how quickly countries are trying to get to net zero.

137 countries have committed to carbon neutrality, as tracked by the Energy and Climate Intelligence Unit and confirmed by pledges to the Carbon Neutrality Coalition and recent policy statements by governments.

But the earlier the pledge, the better, and most of the commitments are centered around 2050.

CountryTarget Year
BhutanAchieved
SurinameAchieved
Uruguay2030
Finland2035
Austria2040
Iceland2040
Germany2045
Sweden2045
Afghanistan2050
Andorra2050
Angola2050
Antigua and Barbuda2050
Argentina2050
Armenia2050
Bahamas2050
Bangladesh2050
Barbados2050
Belgium2050
Belize2050
Benin2050
Brazil2050
Bulgaria2050
Burkina Faso2050
Burundi2050
Cabo Verde2050
Cambodia2050
Canada2050
Central African Republic2050
Chad2050
Chile2050
Colombia2050
Comoros2050
Cook Islands2050
Costa Rica2050
Croatia2050
Cyprus2050
Czechia2050
Democratic Republic of Congo2050
Denmark2050
Djibouti2050
Dominica2050
Dominican Republic2050
Ecuador2050
Eritrea2050
Estonia2050
Ethiopia2050
European Union2050
Fiji2050
France2050
Gambia2050
Greece2050
Grenada2050
Guinea2050
Guinea-Bissau2050
Guyana2050
Haiti2050
Hungary2050
Ireland2050
Italy2050
Jamaica2050
Japan2050
Kiribati2050
Laos2050
Latvia2050
Lebanon2050
Lesotho2050
Liberia2050
Lithuania2050
Luxembourg2050
Madagascar2050
Malawi2050
Maldives2050
Mali2050
Malta2050
Marshall Islands2050
Mauritania2050
Mauritius2050
Mexico2050
Micronesia2050
Monaco2050
Mozambique2050
Myanmar2050
Namibia2050
Nauru2050
Nepal2050
Netherlands2050
New Zealand2050
Nicaragua2050
Niger2050
Niue2050
Norway2050
Pakistan2050
Palau2050
Panama2050
Papua New Guinea2050
Paraguay2050
Peru2050
Portugal2050
Romania2050
Rwanda2050
Saint Kitts and Nevis2050
Saint Lucia2050
Saint Vincent and the Grenadines2050
Samoa2050
Sao Tome and Principe2050
Senegal2050
Seychelles2050
Sierra Leone2050
Slovakia2050
Slovenia2050
Solomon Islands2050
Somalia2050
South Africa2050
South Korea2050
South Sudan2050
Spain2050
Sudan2050
Switzerland2050
Tanzania2050
Timor-Leste2050
Togo2050
Tonga2050
Trinidad and Tobago2050
Tuvalu2050
U.S.2050
Uganda2050
United Kingdom2050
Uzbekistan2050
Vanuatu2050
Vatican City2050
Yemen2050
Zambia2050
China2060
Kazakhstan2060
Ukraine2060
Australia2050 – 2100
Singapore2050 – 2100

As far as early achievers go, Bhutan and Suriname are the only two countries that have achieved carbon neutrality and are actually carbon negative (removing more carbon than they emit). Uruguay’s 2030 target is the earliest to try and match that feat, followed by Europe’s Finland, Austria, Iceland, Germany, and Sweden, who are all targeting 2045 or earlier.

Over 90%, or 124 of the 137 countries tracked above, set a target of 2050 for reaching carbon neutrality. This is largely due to membership in the Carbon Neutrality Coalition, which asks member states to target 2050 for their goal but leaves commitment up to them.

Only five countries have net zero pledges set for after 2050, including Australia and Singapore, which haven’t set a firm target yet. Targeting 2060, in addition to Ukraine and Kazakhstan, is the world’s largest emitter, China. The country’s recent pledge is significant, since China accounts for an estimated 25% of global emissions.

In fact, according to the Climate Action Tracker, 73% of global emissions are currently covered by net zero targets.

How Seriously Are Countries Committing to Carbon Neutrality?

Setting a goal is perhaps the easiest step towards carbon neutrality. But the real challenge is in solidifying that goal and starting to make progress towards it. That’s why it’s important to consider how deeply committed each country’s carbon neutral pledge truly is.

The most rigid commitments are enshrined in law, followed by official government policy, though the latter can change alongside governments. Likewise, proposed legislation shows forward momentum in making pledges a reality, but proposals can take a long time to become enacted (or get derailed).

As it turns out, the vast majority of carbon neutral targets are only under discussion, with no formal action being taken to act on them.

CountryTarget Status
BhutanAchieved
SurinameAchieved
DenmarkLaw
FranceLaw
HungaryLaw
New ZealandLaw
SwedenLaw
United KingdomLaw
AndorraPolicy Document
AustraliaPolicy Document
AustriaPolicy Document
BrazilPolicy Document
ChinaPolicy Document
Costa RicaPolicy Document
FinlandPolicy Document
GermanyPolicy Document
IcelandPolicy Document
IrelandPolicy Document
JapanPolicy Document
KazakhstanPolicy Document
Marshall IslandsPolicy Document
NorwayPolicy Document
PanamaPolicy Document
ParaguayPolicy Document
PortugalPolicy Document
SloveniaPolicy Document
South AfricaPolicy Document
SwitzerlandPolicy Document
U.S.Policy Document
UkrainePolicy Document
UzbekistanPolicy Document
Vatican CityPolicy Document
CanadaProposed Legislation
ChileProposed Legislation
European UnionProposed Legislation
FijiProposed Legislation
South KoreaProposed Legislation
SpainProposed Legislation
AfghanistanUnder Discussion
AngolaUnder Discussion
Antigua and BarbudaUnder Discussion
ArgentinaUnder Discussion
ArmeniaUnder Discussion
BahamasUnder Discussion
BangladeshUnder Discussion
BarbadosUnder Discussion
BelgiumUnder Discussion
BelizeUnder Discussion
BeninUnder Discussion
BulgariaUnder Discussion
Burkina FasoUnder Discussion
BurundiUnder Discussion
Cabo VerdeUnder Discussion
CambodiaUnder Discussion
Central African RepublicUnder Discussion
ChadUnder Discussion
ColombiaUnder Discussion
ComorosUnder Discussion
Cook IslandsUnder Discussion
CroatiaUnder Discussion
CyprusUnder Discussion
CzechiaUnder Discussion
Democratic Republic of CongoUnder Discussion
DjiboutiUnder Discussion
DominicaUnder Discussion
Dominican RepublicUnder Discussion
EcuadorUnder Discussion
EritreaUnder Discussion
EstoniaUnder Discussion
EthiopiaUnder Discussion
GambiaUnder Discussion
GreeceUnder Discussion
GrenadaUnder Discussion
GuineaUnder Discussion
Guinea-BissauUnder Discussion
GuyanaUnder Discussion
HaitiUnder Discussion
ItalyUnder Discussion
JamaicaUnder Discussion
KiribatiUnder Discussion
LaosUnder Discussion
LatviaUnder Discussion
LebanonUnder Discussion
LesothoUnder Discussion
LiberiaUnder Discussion
LithuaniaUnder Discussion
LuxembourgUnder Discussion
MadagascarUnder Discussion
MalawiUnder Discussion
MaldivesUnder Discussion
MaliUnder Discussion
MaltaUnder Discussion
MauritaniaUnder Discussion
MauritiusUnder Discussion
MexicoUnder Discussion
MicronesiaUnder Discussion
MonacoUnder Discussion
MozambiqueUnder Discussion
MyanmarUnder Discussion
NamibiaUnder Discussion
NauruUnder Discussion
NepalUnder Discussion
NetherlandsUnder Discussion
NicaraguaUnder Discussion
NigerUnder Discussion
NiueUnder Discussion
PakistanUnder Discussion
PalauUnder Discussion
Papua New GuineaUnder Discussion
PeruUnder Discussion
RomaniaUnder Discussion
RwandaUnder Discussion
Saint Kitts and NevisUnder Discussion
Saint LuciaUnder Discussion
Saint Vincent and the GrenadinesUnder Discussion
SamoaUnder Discussion
Sao Tome and PrincipeUnder Discussion
SenegalUnder Discussion
SeychellesUnder Discussion
Sierra LeoneUnder Discussion
SingaporeUnder Discussion
SlovakiaUnder Discussion
Solomon IslandsUnder Discussion
SomaliaUnder Discussion
South SudanUnder Discussion
SudanUnder Discussion
TanzaniaUnder Discussion
Timor-LesteUnder Discussion
TogoUnder Discussion
TongaUnder Discussion
Trinidad and TobagoUnder Discussion
TuvaluUnder Discussion
UgandaUnder Discussion
UruguayUnder Discussion
VanuatuUnder Discussion
YemenUnder Discussion
ZambiaUnder Discussion

Uruguay’s 2030 target might be the earliest, but it is not yet set in stone. The earliest commitment actually enshrined in law is Sweden’s 2045 target.

Including Sweden, only six countries have passed their carbon neutral targets into law. They include Denmark, France, Hungary, New Zealand, and the UK.

An additional five countries have proposed legislation in the works, including Canada and South Korea, as well as the entirety of the EU.

Meanwhile, 24 countries have their climate targets set as official policy. They include Brazil, China, Germany and the U.S., some of the world’s largest emitters.

99 of the 137 pledges are only under discussion at this time, or more than 72%. That means that they have no official standing as of yet, and are harder to act on. But as time starts to pass, pressure on countries to act on their carbon neutral pledges is beginning to grow.

The National Public Utilities Council is the go-to resource for all things decarbonization in the utilities industry. Learn more.

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Retirement Spending: How Much Do Americans Plan to Spend Annually?

Retirement expenses can vary significantly from person to person. In this graphic, we show the range of expected retirement spending.

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Retirement Spending

Americans’ Expected Annual Retirement Spending

Planning for retirement can be a daunting task. How much money will you need? What will your retirement spending look like?

It varies from person to person, based on factors like your health, outstanding expenses, and desired lifestyle. One helpful trick is to break it down into how much you estimate you’ll spend each year.

In this graphic from Personal Capital, we show the expected annual retirement spending of Americans. It’s the last in a three-part series that explores Americans’ spending and savings.

The Range of Retirement Spending

To determine how much people expect to spend, we used anonymized data from users of Personal Capital’s retirement planning tool. It’s worth noting that these users are proactive regarding financial planning. They also have a median net worth of $829,000 compared to the $122,000 median net worth of the U.S. population overall.

Here is the range of expected annual retirement spending.

Expected Annual Retirement SpendingPercent of People
$10K1.3%
$20K3.3%
$30K7.5%
$40K9.8%
$50K5.2%
$60K12.7%
$70K10.2%
$80K6.4%
$90K9.1%
$100K5.4%
$110K1.5%
$120K9.7%
$130K1.5%
$140K2.8%
$150K2.2%
$160K0.9%
$170K0.4%
$180K2.7%
$190K0.7%
$200K0.8%
$210K0.5%
$220K0.2%
$230K0.1%
$240K1.6%
$250K0.3%
$260K0.2%
$270K0.1%
$280K0.1%
$290K0.1%
$300K0.7%
Over $300K2.1%

Users are a mix of single individuals and people in a relationship. In all cases, expected retirement spending is what the household expects to spend annually.

The most commonly-cited expected spending amount is $60,000. Interestingly, this is roughly in line with what Americans spend annually on their credit cards. This suggests that people may be using their current bills to help gauge their future retirement spending.

Median spending, or the middle value when spending is ordered from lowest to highest, falls at $70,000. However, average spending is a fair amount higher at $100,000. This is because the average is calculated by adding up all the expected retirement spending amounts and dividing by the total number of users. Higher expected spending amounts, some in excess of $300,000 per year, skew the average calculation upwards.

Of course, given their higher net worth, it’s perhaps not surprising that many Personal Capital users expect to spend larger amounts in retirement. How does this compare to the general population? According to the Bureau of Labor Statistics, Americans age 65 and older spend about $48,000 per year on average.

Chances of Retirement Success

Once you’ve determined how much you’ll spend in retirement, your next step may be to wonder if your savings are on track. Based on an assessment of Personal Capital retirement planner users, here is the breakdown of people’s chance of success.

Retirement Spending Chance of Success

The good news: more than half of people have an 80% or better chance of meeting their retirement spending goals. This means they have sufficient financial assets and are contributing enough, regularly enough, to meet their expected spending amount. The not so good news: one in five people has a less than 50% chance of meeting their goals.

This problem is even more troublesome in the overall U.S. population. Only 50% of people have a retirement account, and the Center for Retirement Research at Boston College estimates half of today’s workers are unprepared for retirement.

Setting Your Own Retirement Spending Goals

While seeing the goals of others is a starting point, your annual retirement spending will be very specific to you. Not sure where to start?

Financial planners typically recommend that you should plan on needing 70-80% of your pre-retirement income in retirement. This is because people generally no longer have certain expenses, such as commuting or childcare costs, when they retire. However, keep in mind your expenses could be higher if you still have a mortgage, encounter unforeseen medical expenses, or want to splurge on things like travel when you retire.

It requires some upfront planning, but being realistic about your retirement spending can give you confidence in your financial future.

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Navigating Market Volatility: Why ETFs Are Critical Tools

Historically, the trading volume of ETFs has spiked during market volatility. We explore why ETFs are preferred by institutional investors.

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ETFs During Market Volatility

Download the ETF Snapshot for free.

Why ETFs Are Critical Tools During Market Volatility

Investors experienced record-breaking volatility in 2020. During COVID-19 market turbulence, the CBOE Volatility index surpassed the previous peak seen in 2008.

In this infographic from iShares, we explore how ETFs rose in popularity during this time—and the characteristics that make them particularly useful during market volatility. It’s the first in a five-part series covering key insights from the ETF Snapshot, a comprehensive report on how institutional investors manage volatility.

The Methodology

To assess how institutional investors navigated this volatility, Institutional Investor published a report in 2021 based on a survey of 766 decision makers. Respondents were from various types of organizations, firm sizes, and regions.

For instance, here is how responses broke down by location:

  • 21% Asia Pacific
  • 36% North America
  • 29% Europe, Middle East and Africa
  • 14% Latin America

Here’s what the survey found.

Rebalancing During Market Volatility

In total, 90% of institutional investors said they rebalanced their portfolios between the first and third quarter of 2020. How did they do it?

Among all financial tools, ETFs were the most popular vehicle for rebalancing. For instance, ETFs were used by 70% of investors globally, compared to the 51% who used mutual funds or derivatives.

The popularity of ETFs was evident in market activity. From January to March 2020, ETFs as a proportion of total equity trading volume increased.

 January 2020February 2020March 2020
VIX142058
ETF trading volume$95B$136B$240B
ETF as % of equity volume26%27%36%

Based on an average of daily values. Reflects all listed U.S. ETFs across all asset classes.

This trend is true historically as well, as ETF trading volume has typically spiked during periods of volatility.

Want more institutional insights into ETFs?

Global Forecast 2022

Download The ETF Snapshot for free.

The Attributes Driving ETF Usage

Why are ETFs preferred by institutional investors? They offer three key characteristics:

  1. Liquidity: ETFs make it much simpler to buy and sell large portfolios instantly, instead of trading individual securities.
  2. Transparency: Among multi-asset managers, transparency of holdings is the top reason for using ETFs. A clear holdings breakdown helps these managers achieve exposures to particular asset classes, sectors, and styles.
  3. Efficiency: ETFs can be traded quickly. They typically also have lower transaction costs relative to the underlying basket of securities.

Based on these key benefits, ETFs were an invaluable tool during extreme market volatility.

Growing Momentum

ETFs are also poised to help institutional investors navigate the market going forward. Globally, 65% of institutional investors plan to increase their use of ETFs in the future.

In fact, this is already coming to fruition. As of September 2021, the average daily trading volume of ETFs was up more than 5% compared to 2020.

Evidently, ETFs play a critical part in helping institutional investors achieve their goals.

Download the ETF snapshot for free.

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