09 / 2020 Accelerating Net Zero - NewClimate Institute

3y ago
54 Views
2 Downloads
1.82 MB
26 Pages
Last View : 4m ago
Last Download : 2m ago
Upload by : Amalia Wilborn
Transcription

09 / 2020AcceleratingNet ZeroExploring Cities, Regions, andCompanies’ Pledges to DecarboniseAuthorsData-Driven EnviroLab & NewClimate Institute

AcceleratingNet ZeroExploring Cities, Regions,and Companies’ Pledges toDecarboniseProject number219051 Data-Driven EnviroLab & NewClimate Institute 2020AuthorsData-Driven EnviroLab & NewClimate InstituteDisclaimerThe views and assumptions expressed in thisreport represent the views of the authors and notnecessarily those of the client.Suggested citationData-Driven EnviroLab & NewClimate Institute.(2020). Accelerating Net Zero: Exploring Cities,Regions, and Companies’ Pledges to Decarbonise.Research report prepared by the team of: Angel Hsu,Zhi Yi Yeo, Amy Weinfurter, Yin Xi Tan, Ian French,Vasu Namdeo, Odele Tan, Sowmya Raghavan,Elwin Lim, and Ajay Nair (Data-Driven EnviroLab)and Thomas Day, Silke Mooldijk, Niklas Höhne, andTakeshi Kuramochi (NewClimate Institute).DesignMeike NaumannAcknowledgementsWe thank the organisations and individuals listed below, whoseassistance and feedback greatly enhanced this report.Many thanks to following organisations that shared and, inseveral instances, helped address questions regarding climateaction data: Business Ambition for 1.5 C, C40 Cities ClimateLeadership Group, CDP, Energy & Climate Intelligence Unit,Global Covenant of Mayors for Climate & Energy, GlobalCovenant of Mayors (EU Secretariat), Science-Based TargetsInitiative, States and Regions Annual disclosure to CDP, inpartnership with The Climate Group, ICLEI carbonn ClimateRegistry, Under2 Coalition (Secretariat: The Climate Group),United States Climate Alliance, the United States ClimateMayors. Thanks also to Oscar Widerberg for sharing dataon Swedish subnational climate commitments, and AndrewClapper for his support with CDP data.We thank the ClimateWorks Foundation, Mission 2020, andthe United Nations Framework Convention on Climate Change(UNFCCC) Secretariat for convening regular discussions ofthe Climate Action Methodology, Data and Analysis (Camda)community, which provided helpful feedback and suggestionson the content and communication of this report. Special thanksgo to Matthew Phillips (UNFCCC) and Todd Edwards (Mission2020) for providing valuable feedback and support on thecommunications and outreach of this report, in collaborationwith the High-Level Champions for Chile and UK.We also thank Nicolas Fux, Victoria Fischdick and Sybrig Smit(NewClimate Institute) for their support on the communicationsand outreach of this report.This work was generously funded by the IKEA Foundation(grant no. G-2001-01507).1

Table of Contents13List of Figures and Tables3Abbreviations173Looking Ahead: Navigating theNuances of Net-Zero Targets4Conclusion4Key wledgementsRelevance and rise of net-zerotarget setting2Landscape of net-zero targets92.1Terminology of targets andclaims102.2Overview of city, region, andcompany net-zero targets112.2.1Cities and regions132.2.2Companies152.2.3Targets

List of Figures andTables11Figure 1Peaks in the interest in “net-zero emissions” from July 2018 to August 202012Figure 2Map of cities and regions pledging some form of net-zero emissions target14Figure 3Revenue of actors pursuing net-zero emissions15Figure 4Net-zero target years for the different actor types22Table 1Data sources CDegrees CelsiusCO2CO2eCarbon DioxideCarbon Dioxide EquivalentGHGGICSGreenhouse GasGlobal Industry Classification StandardIPCCIntergovernmental Panel on Climate ChangeMRVMonitoring, Reporting and VerificationSBTiScience-Based Targets initiativeUNFCCCUnited Nations Framework Convention on Climate ChangeAbbreviations3

Key MessagesThe shift towards net-zero greenhouse gas emission pathways isaccelerating, and the group of actors pledging net-zero targets issubstantial: 823 cities and 101 regions have net-zero targets. These local governments represent more than846 million people across every continent — 11 percent of the global population — and havean emissions footprint of more than 6.5 gigatonnes of GHG emissions, an amount greater thanemissions from the U.S. in 2018.1 1,541 companies pledge to net-zero targets. They have a combined revenue of over US 11.4 trillion,equivalent to more than half of the U.S.’s GDP, and cover 3.5 gigatonnes in GHG emissions, an amountgreater than India’s annual emissions.1 These actors have pledged to fully decarbonising their emissions footprints, adopted specific netzero targets in sectors like energy, transport or buildings, or signed onto initiatives articulating net-zerogoals. Some actors are even going beyond net-zero emissions within their direct emission scopes, andtargeting supply-chain or down-stream consumption-based emissions. The timelines for net-zero targets vary widely, with some actors having already achieved net-zeroemissions or aiming to by the end of 2020, while most others aim for 2030, 2040, or 2050,depending on the magnitude of their existing emissions, their progress in abating emissions to date,and the difficulty in eliminating the remaining emissions.This first look at the state of play shows us where momentum isbuilding, and where there is more work to be done:4 The number of net-zero pledges has roughly doubled in less than a year. Late 2019 found 11 regions,more than 100 cities, and roughly 500 businesses with economy or company-wide net-zerotargets.2 We find that an additional 90 regions, 700 more cities, and close to 1,000 businesses haverecorded some form of net-zero pledge, from sector-specific targets (i.e., buildings or specificemission scopes) to economy- or company-wide targets. Subnational governments on every continent are making net-zero targets, and momentum isespecially strong in certain regions: Europe is the region with the greatest number of subnational governments — 291 cities and38 regions – making net-zero pledges. These participating cities and regions cover more than162 million people, more than 36 percent of the EU’s total population.3 Latin America has the second highest number of participating subnational governments —209 cities and 5 regions, covering 81 million people. The East Asia and Pacific region includes 164 cities and 31 regions making net-zero pledges,representing over 223 million people, more than 10 percent of this region’s total population.3Participating regions in Australia represent over 95 percent of the country’s total population. In North America, 27 regions and 121 cities have made net-zero pledges. These subnationalgovernments encompass over 220 million people, an amount equal to about 60 percent of thisregion’s total population.3

Key Messages While target announcements increase, implementation has yet to follow. Only a limited numberof subnational governments have developed action plans towards their net-zero targets, orincorporated them into binding legislation. Companies across a wide range of sectors have made net-zero commitments. 399 cities or regions (43 percent) have released action plans associated with their net-zerotargets.227 cities or regions ( 24 percent) have incorporated their net-zero targets into formal policiesand legislation.42 percent of cities or regions reporting a specific emissions reduction goal by a target year areaiming for economy-wide net-zero emissions.123 cities and regions mention specific carbon offset projects in their net-zero plans. Thesecarbon offset projects span a range of categories, including reforestation, renewable energyprocurement and CO2 removal.The consumer discretionary sector leads the way, with 195 companies aiming for net zero. Thissector also makes up the largest share of the total revenue, representing a combined US 2 trillionfrom 195 companies employing 3.9 million people.4Industrials are the next most active sector, with 171 companies aiming for net zero, encompassingover US 1 trillion in revenue and over 3 million employees.4There is still much room for accelerated action from real estate companies. The real estatesector makes up the smallest share of revenue out of companies committed to net zero, withUS 11 billion in revenue, and over 1,000 employees from 15 companies.4Even in sectors traditionally considered hard to abate, some actors are setting ambitious targets.Some companies are aiming for net zero in the next few years, and others are going beyond theirdirect emission scopes, targeting supply-chain and downstream emissions. Although only seven companies from the energy sector have set net-zero targets, those that did setaggressive target years — the energy sector has the earliest median target year, at 2025.4The consumer staples sector has the next earliest median target year at 2028, with 24 companies.4Though a direct and comprehensive reduction of an actor’s ownemissions is the most unambiguous approach for achieving net zero,there are many nuances associated with the range of approachesavailable to actors today. 51234The robustness of carbon offsets and the concept of additionality are key to assessing net-zerotargets.A forthcoming report in October 2020 will delve into these issues and evaluate the health of city,region and company net-zero commitments and how they can be successfully implemented.Source: World Resources Institute, 2020aSource: Höhne et al., 2019Source: World Bank, 2020aAmong the companies with available sector or revenue data.

ForewordThe COVID-19 pandemic has reminded us all that human and planetary health are interlinked. As we seekto rebuild our societies after this global pandemic, we must ensure that we put the world on a zero carbonpathway and contain temperature rise within 1.5 C. The acceleration of net-zero commitments during theglobal pandemic shows us that companies, cities, states, regions, investors and universities across the worldunderstand that the twin challenges of tackling climate change and coronavirus go hand-in-hand.Meeting the goal of net-zero carbon emissions by 2050 requires an unprecedented scale of action andcollaboration across all levels of society. That is why we launched the Race to Zero campaign: to encouragebusinesses, investors and financial institutions, city and regional governments to set ambitious targets that willhelp move the world towards this goal. It is the largest ever alliance committed to achieving net-zero carbonemissions by 2050.Even amidst the global crisis, momentum towards net zero is growing. The Business Ambition Coalition for1.5 C alone has grown from 28 member companies in July 2019 to 291 today. More than 900 city and regionalgovernments on every continent have committed to net-zero targets. Businesses from sectors as diverseas real estate and transportation are also pledging to decarbonize and even achieve negative emissions by2050. Such levels of ambition send a critical signal to national leaders to step-up ambition towards COP26in Glasgow.This report explores where there have been huge uptakes in net-zero commitments in surprising sectors andgeographies, quantifying the scale of net-zero commitments from cities, regions, and business actors. Thefindings show the growing momentum towards zero carbon, while revealing areas where there is the potentialto scale up and accelerate crucial action in the coming decades. As we begin Climate Week NYC 2020, hostedon an interactive virtual platform for the first time, leaders of regions, cities, businesses, investment funds anduniversities are sending a clear message to national leaders: that they are ready to act decisively and build ourzero-carbon future.Nigel Topping and Gonzalo MuñozHigh-Level Champions for Climate Action of the COP26 and COP25 Presidencies6

1 / Relevance and rise of net-zero target setting1Relevance and rise of net-zerotarget settingA growing number of cities, regions, andcompanies have set or are pledged to develop theirown net-zero greenhouse gas (GHG) emissionreduction targets. These include some of the world’slargest companies, from Microsoft to Mahindra &Mahindra, which have garnered headlines for netzero targets (We Mean Business, 2020). Hundredsof cities are also working to decarbonise: some,such as Copenhagen and Glasgow, plan to becarbon neutral within the next decade (CNCA,n.d.; GBNews, 2019). Many regions, including anumber of U.S. states like California and New York,have mapped out plans to decarbonise economiesand societies, at a scale on par with some nationalgovernments.Momentum towards net-zero targets is growing,even in the midst of the global COVID-19 crisis. Manyactors are making net-zero pledges on their own, orjoining networks of like-minded actors. For instance,the Business Ambition Coalition for 1.5 C nowincludes over 280 companies with US 3.6 trillionin market capitalisation, up from just 28 membersin July 2019 (Science Based Targets, 2020; UNGC,SBTi & WMBC, 2019). In Japan, the number of netzero announcements by local governments hassteadily been increasing in 2020; the population7coverage increased from less than 50 million inJanuary 2020 to over 70 million, or 56% of thecountry’s total population, as of August 2020. TheUnited Nations Framework Convention on ClimateChange (UNFCCC) Race To Zero campaign hasmobilised initiatives that include 1,128 companies,452 cities, and 22 regions, along with 45 investorsand 549 universities, working towards achievingnet-zero carbon dioxide (CO 2) emissions by 2050(UNFCCC, 2020).These targets could play a vital role inaddressing the climate crisis. Avoiding the mostdangerous impacts of climate change requirescutting greenhouse gas emissions at unprecedentedrates. The world is already more than 1 C warmerthan in pre-industrial times (IPCC, 2018). TheIntergovernmental Panel on Climate Change (IPCC)Special Report on Global Warming of 1.5 C outlinesthe stakes for ecosystems and humans of allowingglobal temperatures to increase by even a half adegree C more. To limit the global temperatureincrease to 1.5 C, with no or limited overshoot, globalCO2 emissions must fall by about 45 percent from2010 levels by 2030, and reach net zero around 2050(IPCC, 2018).

1 / Relevance and rise of net-zero target settingOn the global balance sheet, net-zeroemissions occur when human-driven greenhousegas emissions and removals equal each other out.In practice, reaching net zero means decarbonisingrapidly and at scale by aligning political, social andtechnological systems to shift to renewable forms ofenergy; decarbonise buildings, transportation, andother infrastructure; reduce food waste; and makeindustrial processes less carbon-intensive (IPCC,2018). At the same time, the world must also expandits ability to capture any remaining emissions throughpractices like protecting and planting forests,practicing climate-smart agriculture, and directlyremoving emissions through tools like air captureand storage technology.Many paths to net zero could also help meetother sustainable development goals. ReducingGHG emissions would also decrease air pollution andprevent millions of premature deaths (IPCC, 2018).Shifting to energy efficiency and renewable energycould align with efforts to improve energy securityand reduce poverty (IPCC, 2018). As the world seeksto recover from the COVID-19 pandemic, many actorsare designing green recoveries that harness thesesynergies, creating jobs and economic recoverythrough investments in more sustainable andresilient energy, transportation, water, and health andsanitation systems (Hepburn et al., 2020).Despite these positive signs, however, globalemissions prior to COVID-19 have not been fallingfast enough, and are stalling or rising in all major8economic sectors (UNEP, 2019). Current nationalpolicies fall far short of the change needed tohelp the world avoid the worst impacts of globalwarming, putting the world on course for 3 C ofglobal temperature rise by 2100 (UNEP, 2019). Inan effort to get back on track, a growing number ofnational governments have ramped up their climateambition. So far, 19 countries, along with EuropeanUnion, have adopted net-zero targets, and more than100 others are contemplating them (Levin et al.,2020). City, region, and company-level climate actioncould help implement these goals, and acceleratethe pace of decarbonisation. While the number ofnet-zero pledges continues to grow, however, thescope and potential impact of these targets remainsunclear (Höhne et al., 2019).At this crucial moment for global climate actionand post-COVID 19 recovery, this report aims tocapture the current landscape of cities, regions,and companies setting net-zero targets. Section2 explores trends in the types of targets beingmade, and the actors making them, while Section 3highlights some of the key considerations in settingand understanding a net-zero target. This analysisprovides a first look at the results of a forthcomingmore in-depth analysis, Navigating the Nuances ofNet-Zero Targets. This additional analysis will furtherexplore what local governments and companiespromise in their net-zero targets and will provideinsights into how such targets can be successfullyframed and implemented.

2 / Landscape of net-zero targets2Landscape of net-zero targetsSince the IPCC Special Report on Warming of1.5 C identified the need for global decarbonisationby 2050, various actors have started to adoptemission reduction targets that work towards this goal.Often termed “net-zero,” “carbon neutral,” or “zeroemissions,” these targets range in their emissionsscope, timelines, sectors, among other characteristics.This section describes the terminology used to definethese pledges (in Section 2.1), and explores the cities,regions, and companies making these pledges,as well as the types of targets they put forward(in Section 2.2).2.1Terminology of targetsand claimsNet-zero terminologyIn the run-up to the Paris Agreement, the ideaof targeting a phase-out of greenhouse gases wasdeveloped, with the Paris Agreement stating thatthis goal should be achieved in the second half of thecentury (Haites, Yamin & Höhne, 2013). Since then,a number of non-state and subnational actors haveset their own targets to achieve net-zero emissions.These pledges range from “net-zero emission” to“carbon neutral” to “zero emission” targets.Most typically, net-zero targets suggest a statein which an actor reduces their emissions as muchas possible and offsets the remainder – using eithernatural sinks, such as reforesting land or adoptingagricultural best practices, or a technological solution,such as carbon capture and storage. “Climateneutrality,” “carbon neutrality” and “zeroemissions” are other emission goals that have arisen9alongside net zero. Technically speaking, carbonneutrality implies net-zero emissions of only carbondioxide, while climate neutrality suggests a broaderfocus on net-zero emissions of all greenhouse gases.In spite of their different implications, in practice theseterms are often used interchangeably. Moreover, aswith the phrase “net-zero emissions,” there is nodefinitive agreement on how these targets are putinto practice. The content of two net-zero pledgescan be dramatically different, aiming for differenttimelines, covering different kinds of GHG emissions,and relying on different kinds of offsets to varyingextents.Across this universe of net-zero, climate- orcarbon-neutral, and zero-emissions commitments,timelines can range widely. Some companies claim thatthey are already achieving carbon neutrality (typicallythrough heavy reliance on offsets), while othersaim to decarbonise by 2050. Some carbon neutraltargets focus just on CO2, while others include othergreenhouse gases, such as methane or nitrous oxide.Different actors may also include different emissionscopes (i.e., direct scope 1 emissions or indirectscope 2 or 3 emissions). For both companies and localgovernments, data limitations can create challengesfor following recommendations to include scope 3emissions in emission reduction targets.While, in general, a target t

The timelines for net-zero targets vary widely, with some actors having already achieved net-zero emissions or aiming to by the end of 2020, while most others aim for 2030, 2040, or 2050, . procurement and CO 2 removal. Companies across a wide range of sectors have made net-zero commitments.

Related Documents:

List of Figures, Tables and Boxes Figures 2 Figure S1 Overview of the key nuances of net-zero target implementation approaches 5 Figure S2 Ten basic criteria for net-zero target transparency 14 Figure 1 Internet searches for net-zero emissions 15 Figure 2 Map of cities and regions pursuing net-zero emissions 16 Figure 3 Population of cities and regions with net-zero targets, by geographic region

The Net-Zero riteria are part of the STi’s Net-Zero Standard. The Net-Zero Standard, which entails both the Criteria and forthcoming Net-Zero Guidance, will be finalized by November 2021 in advance of the 2021 United Nations Climate Change Conference (COP26). Public consultation of the Net-Zero Guidance is scheduled to begin in July 2021.

emissions ('net zero emissions') has grown, so has the need for a common understanding on what net zero emissions means and how to achieve net zero goals. Investors are also putting pressure on companies to lay out their plans for reaching net zero emissions and to demonstrate how net zero pathways are integrated into their long-term strategy.4

Navigating the Net Zero Landscape Global net zero landscape. The recent wave of net zero targets has brought global emissions trajectories closer to the Paris Agreement's 1.5 C goal. As of December 2020, 127 countries have either set net zero emissions targets or declared intentions to do so, representing cumulatively, around 63% of

China net zero and job creation: Potential for the creation of c.40 mn jobs by 2060 33 Laying out the path to a net zero China: A sectoral deep dive 34 China net zero: The role of carbon sequestration 61 China net zero: The potential implications for natural resources demand 64

part of the Army’s Net Zero pilot program and builds on past Net Zero Energy work sponsored by FEMP and supported by NREL. FEMP continues to support the Net Zero program with project implementation strategies. The energy team members at each of the Net Zero Energy pilot sites and some of the staff members from NREL, the Pacific

A Net ZERO INSTALLATION applies an integrated approach to management of energy, water, and waste to capture and commercialize the resource value and/or enhance the ecological productivity of land, water, and air. “The primary goal is a focus toward net zero and when we talk about net zero, it's not only net zero energy, but

A.R. Paterson, A First Course in Fluid Dynamics, Cambridge University Press. (The recommended text to complement this course - costs ˇ 50 from Amazon; there are 6 copies in Queen’s building Library and 3 copies in the Physics Library) 2. D.J. Acheson, Elementary Fluid Dynamics. Oxford University Press 3. L.D. Landau and E.M. Lifshitz, Fluid Mechanics. Butterworth Heinemann Films There is a .