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…if governments decide to double down on their climate change targets and start aiming for the more ambitious 2-degree scenario under the Paris Agreement, LNG growth will suffer.
The so-called 2-degree scenario refers to efforts aimed at curbing the rise in average global temperatures to 2 degrees Celsius. A less realistic scenario is limiting this rise to 1.5 degrees Celsius. According to the U.N. Framework Convention on Climate Change’s Conference of the Parties (COP21), the 2-degree scenario was economically feasible and cost-effective in 2015. Since then, however, doubts have arisen as this scenario would require cutting the world’s emissions by as much as 70 percent by 2050.