‘Green economic growth’ and, specifically net zero, is seen as one of the biggest economic opportunities globally.
But why is it so important?
‘Net zero’ is all about negating the amount of greenhouse gas (GHG) produced by human activity. This can be achieved by reducing emissions in the first place, as well as coming up with ways to absorb carbon dioxide from the atmosphere once it’s already emitted.
It’s important to slow the and limit global warming so that we avoid potentially catastrophic effects on land and life on Earth as we know it.
More frequent extreme weather events and loss of life are just two dangers we’re likely to face if we continue on the current pathway.
According to the Climate Clock, built by expert scientists, we now have less than 5 years to limit global warming to 1.5°C above pre-industrial levels and mitigate the worst impacts of climate change. The current climate temperature is just below 1.3°C.
There are various contributors to climate change, from power and transport to agriculture and industry. A combined effort from governments, businesses and individuals is needed to achieve net zero.
Global change starts locally
It's estimated that 89% of global GHG emissions are covered by net zero targets, either agreed in law, as part of an initiative or under discussion. The Paris Agreement, signed in 2016, covers 196 countries accounting for 55% of global GHG emissions and aims for "holding warming well below 2°C, and pursuing efforts to limit warming to 1.5°C."
But targets aren’t everything; they are signals of intent. It’s real-world action that’s needed for actual change to happen.
Despite an acceptable 2050 net zero target set by the EU, for example, it's still seen as insufficiently aligned with a 1.5°C pathway when it comes to policies and climate action.
Similarly, the UK and US have net zero targets in place for 2050 but subsequent climate policies and action have so far been insufficiently aligned to achieving them, according to The Climate Action Tracker.
Is the tide turning?
Whilst there’s still a way to go for major economies like China, the EU, UK and US to be compatible with a 1.5°C pathway, their current policy projections show a future downward trajectory in GHG emissions.
There’s a growing realisation that the next Industrial Revolution centres around economic growth from the protection of natural resources and the reversing of damage to the environment.
Low-carbon industries are starting to thrive.
China is leading the way in renewable energy, producing twice the amount of wind and solar power than the rest of the world combined. It’s motivation for doing this is, in part, to reduce the carbon intensity of its economy by 18%, but the great economic benefits of being a front-runner in this movement is clear to them.
Italy’s renewable energy power output has now surpassed fossil fuels. Costa Rica runs almost entirely on renewable energy.
In the UK, the newly elected government has committed to creating a publicly owned firm, Great British Energy, focused on decarbonising the country by 2030 with the production of clean energy.
What about the business and consumption side of things?
Businesses and organisations, known as ‘Industry’, have a crucial role to play in climate action.
Almost 90% of consumers want brands to help them live sustainably (Forbes) and as many as 80% of Gen Z shoppers are changing their buying behaviour based on sustainability (Carbon Neutral Copy). 62% of consumers, across all ages, are more likely to buy products from companies that are committed to sustainability (McKinsey).
Businesses are taking notice.
As of today, there are 8,266 businesses with future climate targets or commitments verified by the SBTi, with 2,261 of those committed to achieving net zero.
In the UK, there are 1,347 businesses with recognised plans and 423 are net zero aligned. That’s in comparison to 1,171 in the US with 297 net zero aligned.
45% of these businesses have published their commitments or targets in the last year.
Ed Milliband, the UK’s new Secretary of State for Energy Security and Net Zero, has already hinted at mandating corporate leaders to ensure their organisations are aligned to net zero. Essentially, the government would require financial institutions and FTSE 100 companies to publish their carbon footprints and adopt credible 1.5-degrees-aligned net zero plans.
To date, climate action blockers have been around weak targets, policies and funding at a government level, low demand and competing priorities for businesses; insufficient choice and information for consumers.
There are promising signs that these are starting to be unblocked.
Gaps between intent and action could be a thing of the past. At Earthmark, we’re making environmental performance part of decision-making for businesses, consumers and employees by providing simple 0-5 scores in places people already browse, shop and compare.
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