Carbon emissions ratio to world GDP slides 1.6% in 2024: Fitch Ratings

It cited carbon emissions from emerging markets, which accounted for 70% of global emissions.

The ratio of carbon emissions to world GDP declined by 1.6% in 2024, as GDP expanded by 2.9% and carbon emissions rose by 1.2%, Fitch Ratings said.

“The pace of decarbonisation is being held back by the growing share in world GDP of emerging markets,” it said.

However, whilst developed market emissions have been falling steadily since 2007, they are now back to levels from 1970, it added.

Emerging markets being more carbon-intensive and a slow improvement in global energy efficiency caused the C02/GDP ratio decline.  

Emerging markets accounted for 42% of world GDP in 2024 but 65% of world energy consumption and 70% of global emissions.

The rising share of emerging markets in global GDP is therefore slowing the pace of global decarbonisation, even as the CO2/GDP ratio in emerging markets falls, Fitch Ratings said.

As world GDP is expected to grow by more than 2.5% annually in the next few years, decarbonisation would need to pace roughly double from recent rates to ensure that global carbon emissions lowers, it added.