A new report from Systemiq and the Energy Transitions Commission, “Carbon in an Electrified Future: Technologies, trade-offs and pathways,” sets out how the world can achieve decarbonisation while managing the carbon we will still need in a net-zero economy.
Electrification will drive the global transition to net zero, powering cleaner industries, homes and transport. But even in a world where electricity dominates, carbon molecules will play a reduced but remaining role in producing essential fuels and materials. Managing this finite resource wisely – by sourcing sustainably, maximising reuse and recycling, and ensuring responsible end-of-life storage – is crucial to creating a balanced and resilient carbon system.
Achieving net zero is not about eliminating carbon entirely, but rather about transforming how we source, use and manage it within a highly electrified, sustainable energy and materials system. The report explores how to balance widespread electrification with sustainable carbon use, sourcing and storage – and how emerging technologies in carbon recycling and sustainable biomass can help reshape our energy and materials systems for good.
Electrification: the backbone of the net-zero economy
The study confirms that electrification offers the biggest single opportunity to cut carbon use across energy and materials sectors. According to the analysis, as much as 77% of final energy demand could be met by direct electricity, with another 6% met through hydrogen or ammonia.
To make this possible, the world must build far larger clean power systems. Electrification could sharply reduce our dependence on carbon-based fuels – but it won’t remove the need for carbon entirely.
Managing the carbon we still need
Even in a highly electrified world, some sectors – such as aviation, chemicals, and heavy industry – will still depend on carbon. The report finds that demand for carbon could fall by up to 70%, from 11.5 Gt today to around 3.3 – 4.8 Gt by mid-century.
In the central scenario:
- 30% of remaining carbon comes from sustainable biomass
- 13% from recycled sources
- 57% from fossil fuels – with almost all end-of-life carbon captured and stored in solid or gaseous form
This approach could transform carbon into a managed, circular resource. In the most ambitious recycling pathway, about one-third of carbon could be made circular, given the right policies, product design and consumer behaviour.
A circular and strategic approach to carbon
The report highlights that managing carbon within planetary limits will require a coordinated strategy across four fronts:
- Reducing demand through electrification and efficiency
- Recycling and reuse for carbon efficiency
- Sustainable sourcing, from primary carbon such as biomass
- Secure storage, including carbon capture and solid carbon storage options
Action now for a sustainable carbon cycle
The report calls for policy, regulatory and financial action to scale technologies that already exist, alongside targeted innovation to fill remaining gaps. The next decade will be critical to establish the systems that allow carbon to be further reduced, sourced sustainably, and used and safely managed at end-of-life.
Developed with input from industry, finance, and civil society, the report offers a strategic framework for governments, investors and companies to act now to secure a sustainable carbon cycle by 2050.
The full report will be published on 11 November 2025.
"Widespread electrification will deliver cleaner power, greater efficiency and sharply reduce our reliance on carbon-based fuels. But even in an electrified world, carbon will remain - a finite resource to be stewarded with the same discipline as land and water. How we manage carbon will determine whether emissions fall quickly enough and enable industries to transition over time to a net-zero economy. Every molecule of carbon should have a provenance, a purpose and a plan for where it goes next."
Eveline Speelman,
Partner Systemiq
"Electrification will be the backbone of the net-zero economy, but reaching net-zero emissions by 2050 does not mean zero carbon. This report looks at the innovations that will determine how much carbon we will still need, and how to ensure that every molecule is used responsibly within planetary limits."
Adair Turner,
Chair of the Energy Transitions Commission
