GOAL 13 : CLIMATE ACTION
GOAL 13 : CLIMATE ACTION
Climate Change
‘Climate change is now affecting every country on every continent. It is disrupting national economies and affecting lives, costing people, communities and countries dearly today and even more tomorrow. Weather patterns are changing, sea levels are rising, weather events are becoming more extreme and greenhouse gas emissions are now at their highest levels in history. Without action, the world’s average surface temperature is likely to surpass 3 degrees centigrade this century. The poorest and most vulnerable people are being affected the most. Affordable, scalable solutions are now available to enable countries to leapfrog to cleaner, more resilient economies. The pace of change is quickening as more people are turning to renewable energy and a range of other measures that will reduce emissions and increase adaptation efforts. Climate change, however, is a global challenge that does not respect national borders. It is an issue that requires solutions that need to be coordinated at the international level to help developing countries move toward a low-carbon economy. To strengthen the global response to the threat of climate change, countries adopted the Paris Agreement at the COP21 in Paris, which went into force in November of 2016. In the agreement, all countries agreed to work to limit global temperature rise to well below 2 degrees centigrade. As of April 2018, 175 parties had ratified the Paris Agreement and 10 developing countries had submitted their first iteration of their national adaptation plans for responding to climate change.’
The results of the COP26 climate summit in late 2021 did not please everyone, but the talks served to focus the world’s attention on the steps now necessary to avert catastrophe. 2020 tied with 2016 as the hottest year on record, and despite the stated aim of the Paris Agreement on climate change to limit warming to well below 2°C above pre-industrial levels – by having countries voluntarily reduce emissions of carbon dioxide and other greenhouse gases – the world is on track to exceed that threshold. Even 1.5°C in warming is likely to lead to punishing environmental impacts, and widespread displacement.
Climate action through education
In 29 countries, 25% of people with less than a secondary education expressed concern for the environment compared to 37% of people with secondary education and 46% of people with tertiary education, research shows. With higher levels of education, people across many different societies show greater concern about the well-being of the environment. Scientific education also helps people to understand the effects of climate change and inspires solutions to help curb these effects. Specific climate change education is beginning to find its way into the curriculum of current and future business leaders. Strategies to limit the magnitude of climate change, adapt to the impacts, and develop effective responses to climate change include business schools preparing their students to be environmental and social stewards and ethical actors in the workplace.
In doing so, faculty are drawing on interdisciplinary resources to teach sustainability and instill habits and mindsets that will serve students well in their careers. This education-based response to climate change also includes social enterprises that create sustainable livelihoods by training entrepreneurs to provide customers with sustainable life-improving and affordable products. Educating people in climate sensitive areas and lines of work, such as people living on islands and people working in agriculture, teaches them how to respond to natural disasters, prevent them, preserve the environment and protect the people and the planet.
Understanding Climate Risks
Extreme weather, rising sea levels, and food and water scarcity are becoming a reality
All ten of the hottest years on record have occurred since 2005. The global average temperature is now about 1°C above the pre-industrial average, and increasing at a rate of about 0.2°C per decade. This warming is largely the result of human activity. Carbon dioxide released by burning fossil fuels, and through agricultural activity like farming, has raised the pre-industrial concentration of carbon dioxide in the atmosphere by about one-third to more than 400 parts per million – which has in turn intensified the trapping of heat. Global warming is causing sea levels to rise and is changing precipitation patterns, with increased rainfall in some regions and more extreme drought in others. The world experienced a staggering number of climate-related disasters in 2020 – causing damage from hurricanes, wildfires, droughts, and floods that resulted in financial losses totalling more than $200 billion, according to the German reinsurer Munich Re. The US National Climate Assessment issued in late 2018 projected yearly related losses of $300 billion in the US alone by the end of this century.
The Paris Agreement on climate change aims to limit global average temperature rise to well below 2°C above pre-industrial levels. However, a 2018 report published by the Intergovernmental Panel on Climate Change vividly illustrated the need to limit warming to no more than 1.5°C; many ocean ecosystems, including the majority of the world’s warm water coral reefs, are likely to disappear if warming exceeds this level. The average global rise in sea level – which is projected to be about half a metre by 2100, if warming reaches 2°C – could be reduced by 20% by hitting the 1.5°C target, thereby protecting an estimated 10 million vulnerable people. A slower temperature rise would also help affected regions better adapt to climate change. In order to meet the 1.5°C target, however, countries must go well beyond their initial Paris Agreement pledges and commit to net-zero emissions by the year 2050. Achieving this will require far-reaching changes to many aspects of modern society as we know it, but would also help create a more sustainable, equitable world.
Investing in Climate Action
Strategic investments can stimulate economies and build climate resilience
Investments in green transportation, sustainable agriculture, and climate-resilient infrastructure can have a multiplier effect. According to the Business Commission for Sustainable Development, investing $320 billion annually in sustainable business models in developed economies could unlock $2.3 trillion in additional annual investment by 2030. A report published by the Organisation for Economic Co-operation and Development found that better integrating economic and climate action could increase average economic output in G20 countries by almost 3% by 2050. And, the International Finance Corporation has identified nearly $23 trillion in climate-smart investments in emerging markets through 2030. Investment in decarbonization surpassed $500 billion for the first time in 2020, despite COVID-19, according to Bloomberg New Energy Finance, and direct investment in electrical power capacity from renewable energy exceeded $300 billion for the second time (following 2017) – including $50 billion in offshore wind. Corporations are signing long-term, large-scale renewable energy contracts, and the Green Climate Fund (an element of the Paris Agreement) is sponsoring nearly 150 projects in developing countries with over $7 billion in committed financing – though still short of the $100 billion targeted to be available annually by 2020.
Governments can catalyse private investment in climate resilience by providing incentives and funding innovation. Businesses can reinforce government action in turn, by making climate-smart investments and by supporting the United Nations 2030 Agenda for Sustainable Development. According to the New Climate Economy report published in 2018 by the Global Commission on the Economy and Climate, $90 trillion will be spent globally through 2030 on new infrastructure – which exceeds the value of all current infrastructure stock. Developing countries are expected to account for roughly two-thirds of this new infrastructure investment, which can be made sustainable and compatible with climate goals through relatively modest additional upfront costs. Ultimately, these upfront costs can be more than offset by efficiency gains and fuel savings. The potential rewards are enormous; the Global Commission on the Economy and Climate’s report projects an economic gain of $26 trillion through the year 2030 if investments are made in low-carbon technologies and resilient infrastructure, rather than conducting business as usual. Such investments offer an unprecedented opportunity to leapfrog the wasteful, polluting infrastructure of the past, and accelerate the global transition to efficient, climate-resilient, and low-carbon economies.
Social Cost of Carbon
Pricing carbon can reduce emissions and enable smarter planning
The cost of carbon-intensive goods like fossil fuels should reflect the damage they cause. Even a small charge on carbon emissions can help insure against climate risk and incentivize the use of (and investment in) green energy. Economists have zeroed in on two forms of carbon pricing: emissions trading schemes (or “carbon markets”), and carbon fees or taxes. According to the World Bank, more than 57 carbon pricing initiatives are in place globally. And, more than 95 countries representing 55% of greenhouse gas emissions are considering carbon pricing to help meet their pledged reductions. Barriers to taxing carbon persist, however. In 2018, France suspended a planned tax hike on gasoline and diesel fuel following violent demonstrations. At about the same time, voters in the state of Washington rejected a ballot proposal to tax carbon dioxide emissions (the proposal had been aggressively targeted with an ad campaign funded by the fossil-fuel industry). Clearly, new approaches are needed to gain public support, possibly by refunding proceeds to low-carbon consumers or through simultaneous reductions in non-carbon-related taxes.
The High-Level Commission on Carbon Prices, launched in 2016 with support from the World Bank, engages economists and energy experts in designing effective carbon pricing. A private-sector initiative led by CDP (formerly the Carbon Disclosure Project) and the We Mean Business Coalition complements this effort, which in turn goes hand-in-hand with a G20 initiative to reform fossil-fuel subsidies that lead to wasteful energy consumption. Institutional investors are paying more attention to carbon risk management by pushing companies to set an internal price on carbon, assess their exposure to climate-based risks, and allocate capital to a low-carbon economy. BlackRock, the world’s largest asset manager, signalled a significant shift in December 2020 by announcing that climate risk would be incorporated “across our platforms as a critical investment risk.” In the past forty years, our understanding of the economic forces underlying climate change has advanced considerably. In recognition of this, the 2018 Nobel Memorial Prize in Economic Sciences was awarded to Yale economist William Nordhaus, for his work on integrating climate change and carbon pricing into macroeconomic analysis.
Transitioning to Clean Energy
A faster transition is the most effective option for combatting climate change
“Electrification of everything” has become a catchphrase attached to the transition to a net-zero economy – but massive blackouts in Texas, California, and other parts of the world have shown that power infrastructure must become more resilient, smarter, and flexible. Renewable energy accounted for about 14% of all global energy in 2020, a slight increase compared with the prior year thanks to a mix that included solar, wind, geothermal, and modern biomass energy (alongside traditional hydroelectric). Wind and solar are projected to provide abundant electrical power as a way to decarbonize; thanks to economies of scale and technologies like efficient solar cells and larger wind turbines, these energy sources now compete price-wise with fossil fuels. An analysis by the investment bank Lazard showed that during the past decade the “levelized” cost (over a farm’s lifetime) of energy from wind farms has decreased by two-thirds, and from utility-scale solar farms by nearly 90%. The emergence of new renewable energy markets has meanwhile reduced operating costs. In developing countries, renewable energy mini-grids are electrifying communities, while in developed countries solar power is reducing reliance on the grid, bolstered by renewable energy credits and tax incentives.
Decarbonizing transportation poses the biggest challenge. Germany and China have announced plans to phase out internal combustion engines entirely, and the number of electric vehicles on the road is projected to increase by more than 7,000% between 2017 and 2030. Still, this will account for less than 15% of the vehicles expected to be in operation by then. GM’s announcement in 2021 that it is going “all electric” by 2035 was the first of its kind for a major manufacturer, and will likely be followed. Aviation and shipping are on track to account for nearly 40% of carbon-dioxide emissions by 2050, though an Energy Transitions Commission report outlined a plan to cut emissions with smarter logistics that improve efficiency and temper demand for carbon-intensive transport. Still, the high cost of energy storage in batteries has prevented widespread adoption of intermittent renewable energy; massive improvement in energy density is needed for lithium-ion batteries to compete with liquid fuels. A cleaning-up of battery supply chains is necessary, from working conditions in mines that supply raw materials to the pollution associated with improper disposal. The World Economic Forum’s Global Battery Alliance was created in 2017 to address these challenges.
Building Climate Coalitions
Effective action requires engagement with many different stakeholders
Effective climate action will require commitments from a wide variety of players – businesses, national governments, international organizations, cities and regions, just to name a few. Businesses, regions and cities in particular took centre stage during the past few years, after the announcement that the Trump Administration planned to withdraw the world’s largest economy from the Paris Agreement on climate change. While that withdrawal effort was later reversed, it provided an opportunity for others to step forward. The We Are Still In coalition, which includes investors, companies, and cities, gathered thousands of signatures in support of a pledge to uphold the Paris Agreement. Meanwhile We Mean Business, a coalition of non-profit organizations dedicated to partnering with the private sector, has engaged more than 1,500 companies (representing nearly $25 trillion in market value) to act on climate change. More than 150 of the companies affiliated with the effort have committed to a goal of 100% renewable power, and many have committed to establishing science-based targets for reducing emissions of greenhouse gases in their operations.
Public-sector coalitions engaging local and regional governments are also becoming more prominent. The C40 Cities Climate Leadership Group, for example, is made up of more than 90 cities that have committed to 10,000 distinct “actions” to combat climate change. C40 cities represent about one quarter of the global economy and roughly 8% of the world’s population, and aim to stir a global conversation that hastens progress towards a low-carbon economy. The Global Covenant of Mayors for Climate & Energy provides a similar platform for more than 9,000 cities that in total comprise about 10% of the world’s population. Climate Action 100+ is yet another example of a global initiative systematically engaging with major corporate greenhouse gas emitters around the world. In addition, the World Economic Forum’s Alliance of CEO Climate Leaders has sought to foster public-private collaboration that can support the Paris Agreement and the United Nations’ Sustainable Development Goals. By joining forces with these coalitions, policy-makers, organizations, and companies can demonstrate a real commitment to climate action, share best practices, and demonstrate leadership.
Green Finance
Global energy investment is poised to rebound post-pandemic, but more must be directed at the clean energy transition
According to a report published in 2017 by the International Finance Corporation, building climate-smart infrastructure would require about $90 trillion in investment over the subsequent 15 years, with most of that in developing and middle-income countries. As of May 2021, the World Bank said it had issued the equivalent of roughly $16 billion in so-called green bonds, or debt raised specifically for environmentally-focused investments, since 2008. These bonds were issued in 23 different currencies, the World Bank said, while noting that their triple-A credit quality is the same as for any of its other bonds. Amid growing political interest in infrastructure investment as a means to boost productivity and create jobs, the appeal of sustainable infrastructure has long seemed poised to grow. However, there have been troubling signs; a political shift in the US in recent years, for example, resulted in the withdrawal of money promised to the United Nations-backed Green Climate Fund (the US has since promised to make good on its funding pledges). The continued, healthy expansion of sustainable infrastructure will require a new architecture of public-private investment, supported by overseas development assistance, government spending, and sovereign wealth funds.
Much of the interest in green bond issuance has been driven by China, as the Bank of China and the Shanghai-based New Development Bank began issuing their first green bonds in 2016. However, investment in renewable energy technology has disappointed recently, according to the International Energy Agency; it reported in 2021 that while global investment in energy was poised to rebound following a COVID-19-related decline, spending on clean energy transitions needs to accelerate. While renewables were expected to account for 70% of all investment in new power generation capacity in 2021, according to the agency, much greater resources must be directed to clean energy technologies in order to put the world on track to hit net-zero emissions by 2050. Cost may play a decisive role in whatever progress is made. In 2021, the International Renewable Energy Agency said renewable power generation costs had fallen sharply over the previous decade, driven by technology innovation and economies of scale; costs for electricity from utility-scale solar photovoltaics fell by 85%, for example. IRENA added that new solar and wind projects are increasingly undercutting even the cheapest of existing coal-fired power plants.
Sustainable Land Use
New approaches to land use can address climate change while preserving food security and biodiversity
About a quarter of all global greenhouse gas emissions result from agricultural activity on cultivated land that is cumulatively the size of Asia. Expanding and increasingly wealthy populations in developing countries will require increasing amounts of agricultural acreage, often obtained through deforestation that adds to greenhouse-gas emissions. This growing food demand must be met, but as land degradation is curbed and forests are better preserved. A tally published in the journal Nature in 2015 counted 3 trillion trees on Earth, which were being cut down at a rate of about 15 billion per year (researchers have estimated that the global total has dropped by nearly half since the advent of agriculture). There is an increasing recognition of the role that natural forest regrowth can play in removing carbon dioxide from the atmosphere. Tropical Forest Alliance 2020, a global partnership of governments, corporations and civic organizations, promotes sustainable forestry by subtracting deforestation from the process of cultivating products like palm oil, pulp, and paper. Innovation could further reduce the environmental impact of land use, while bolstering carbon storage, water flow regulation, and biodiversity.
However, in developing countries where land and water resources are under the most stress, new innovation is constrained by limited public budgets. More private sector investment is therefore needed. The Food and Agriculture Organization of the United Nations has found that investment in land-use R&D can generate rates of return as high as 75%, and innovation aimed at sustainable land use is a key part of the Fourth Industrial Revolution – as satellites, drones, and autonomous vehicles can monitor soil and water conditions and crop health, big data can be tapped to send timely recommendations to a local farmer’s mobile phone, biotechnology can breed more resilient crops, renewable energy generation can be distributed, and fintech can be delivered to communities in need. The World Economic Forum’s New Vision for Agriculture, in partnership with the G7, has engaged roughly 600 organizations to work towards the UN 2030 Agenda for Sustainable Development. Effective innovation and collaboration, promoted through the Forum’s Innovation with a Purpose initiative, are essential for more sustainable land use that helps mitigate climate change – all while feeding the world’s growing population.
Future of the Environment
Decisions made in the next few years will determine whether our existence on Earth as we know it will continue, or collapse as a result of human activity. The need to change the ways societies interact with and affect the environment becomes more urgent as the tangible impacts of a planetary crisis accumulate – generating daily headlines about extreme weather events, pandemics, pollution, and a mounting shortage of essential natural resources. As the COP26 climate summit demonstrated, effectively addressing these challenges will require increased commitments from the public and private sectors.
Decoupling Growth from Resource Use
Science suggests breaking the destructive link between economic growth and natural resource use is possible
Natural resources underpin the global economy, as biomass, fossil fuels, metals, minerals, arable land, and water supply everything from the food we eat to the buildings we live in. These resources are also a bridge between economic activity and climate change, biodiversity loss, pollution, and poor health. As the global economy and population have expanded, the use of natural resources has more than tripled over the past five decades – with dire consequences for the environment and human health and well-being. According to the International Resource Panel’s report Global Resources Outlook 2019, the extraction and processing of materials including metals, minerals, fossil fuels and biomass are responsible for half of all global climate change, more than 80% of water stress and land-related biodiversity loss, and a third of all air pollution. According to IRP estimates, barring drastic change, global resource consumption will double by 2060. This rate of growth would not only be catastrophic for the climate and for biodiversity, it would also further undermine notions of fairness and equality – as these resources would be used up inordinately by high-income countries, while related negative impacts are primarily absorbed by the less fortunate.
The average person living in a high-income country consumes 60% more natural resources than their counterpart in an upper-middle-income country, and more than 13 times that of a counterpart in a low-income country. In every type of economy, the decoupling of natural-resource use (and related environmental impacts) from economic growth and human well-being is necessary to transition to a more sustainable future. Better resource management is key in this regard – for example, IRP modelling shows that by implementing proper resource efficiency, circular economy practices, and sustainable consumption and production policies, the growth of global resource use could slow by 25%, greenhouse gas emissions could decrease by 90%, forested areas and natural habitats could increase by 11%, and the global economy could grow by 8%, all by the year 2060. In particular, by managing natural resource use in more efficient and sustainable ways along some of the most resource-intensive value chains, such as those used for food, construction, mobility systems, and textiles (among others), we can better ensure economic competitiveness, bolster social equality, more aggressively tackle environmental challenges, and advance the Agenda 2030 Sustainable Development Goals.
Ecosystem Restoration
The loss of natural habitats is a driver of zoonotic diseases like COVID-19
The world has reached a tipping point. Simply conserving nature and critical ecosystems will no longer be enough to avert catastrophic climate change and a mass extinction. Humanity needs to bring back what has been lost, by restoring degraded ecosystems – in order to achieve the goals outlined in the Paris Agreement. Restoring forests, peatlands, and mangroves (and other natural solutions) can provide more than a third of the greenhouse gas mitigation needed by 2030. And, by halting and reversing the degradation of land and the ocean, we can prevent the loss of one million endangered species. Scientists say restoring just 15% of ecosystems in priority areas and thereby improving habitats can cut extinctions by 60%. Restoration is also key to human prosperity and well-being; vibrant ecosystems provide the food, water, health, and security that a growing global population needs more of every day. Halting the decline of ecosystem services (such as climate control or oxygen production) could prevent the loss of $10 trillion in global income by 2050 – currently, some 2.3 billion people suffer from ecosystem degradation, which undercuts their access to safe food and water.
Restoring ecosystems is critical for global health. The loss of natural habitats is a key driver of zoonotic diseases such as COVID-19, for example, and forest restoration and better farm practices could reduce the pollution of water supplies in 81% of the world’s cities. Adding urban trees can blunt the impacts of pollution and excessive heat, while boosting mental and physical well-being. More than 115 countries have included ecosystem restoration as part of their commitments to the Paris Agreement and the Sustainable Development Goals, covering roughly one billion hectares – an area larger than China. However, the status of actual implementation is uncertain (ecosystem restoration must follow strict guidelines to avoid monocultures and invasive species, and to ensure that local communities benefit). The United Nations General Assembly has declared the years 2021 through 2030 the UN Decade on Ecosystem Restoration. Led by the UN Environment Programme and the Food and Agriculture Organization, the UN Decade is designed to prevent, halt and reverse the degradation of ecosystems worldwide. It will draw together political support, scientific research and financial muscle to revive millions of hectares of terrestrial and aquatic ecosystems.
Interconnected Risks
Environmental dangers threaten economic growth and viability, and can trigger violent conflict
The World Economic Forum’s Global Risks Report has underlined a series of interconnected environmental risks, related to extreme weather events, climate change, and water crises. These are all closely tied to other categories of risk; changing weather patterns or water crises, for example, can trigger or exacerbate geopolitical and social issues like domestic or regional conflict, not to mention involuntary migration – particularly in politically-fragile areas. A lack of effective management of the ocean, the atmosphere, and climate systems generally can therefore have local as well as global consequences, which extend well beyond the environment. While non-environmental risks have typically flared and then subsided as conditions have varied, or as the international community has mobilized to contain them, environmental issues consistently remain among the top global risks from year to year. This points to a systemic problem, and responding effectively has proven to be a challenge. While the Paris Agreement on climate change was ratified in 2017, for example, as of 2021 countries were still generally considered to be falling short on related commitments.
Even if countries do deliver on their Paris Agreement commitments, the United Nations Environment Programme has estimated that the world will still warm by as much as 3.2°C compared with pre-industrial levels – far above the targeted ceiling of 2°C. Meanwhile the impacts are spreading. According to the Internal Displacement Monitoring Centre, an annual average of 25.3 million people were displaced by climate- or weather-related events between 2008 and 2016, and the Centre for Research on the Epidemiology of Disasters has estimated that 96 million people were affected by natural disasters in 2017 alone. Entire communities have already had to be relocated or plan to relocate amid rising sea levels. A World Bank report suggested that water stress may trigger extreme societal problems in regions such as the Middle East and the Sahel – where water scarcity could affect as much as 6% of local GDP by 2050. The same report projected that water availability in cities could decline by as much as two-thirds between 2015 and 2050, due to climate change and increased competition within the energy and agriculture sectors.
People Centered Climate action
Climate justice means focusing on equitably sharing burdens
The burdens of climate change should be shared equally – between the rich and poor, women and men, and young and old. Yet, in reality the impacts are felt most acutely by those who have contributed least to the problem. In addition to recognizing that different groups are affected in different ways by the climate crisis, more attention should be paid to the fact that climate impacts can exacerbate already inequitable social conditions. For example, extreme heat affects the elderly, those with disabilities, or people suffering from chronic illness more severely, while people already struggling with food insecurity are impacted inordinately by diminished food supplies due to drought and flooding, and communities of colour are often subjected to relatively poor air quality, urban heat islands, and other problems that become more acute as the planet warms. Efforts to achieve climate justice are gaining greater acceptance and prominence; the global Fridays For Future youth strikes have injected new energy into the movement, and illustrated the need to embrace the next generation as facilitators and creators of fresh opportunity – and not merely as passive beneficiaries of climate action.
Climate justice means being clearly focused on equitably sharing the burdens of climate change. There is also a need to focus on the practical means to achieve the new, green economy. Just as the effects of climate change often have different social, economic, and public-health implications for marginalized and vulnerable groups, the actions undertaken to fight climate change can adversely impact certain people if not properly conceived and pursued. There is a growing awareness of the need for a “just transition” that not only creates jobs to those who lose theirs to climate progress, but also recognizes that efforts to achieve a low-carbon economy must be implemented in ways that respect the rights of the workers and communities most impacted by changing industries, economies, technologies, and societies. Underpinning this concept is the core human rights principle of participation – to involve those affected by a potential action in the decision-making process. Businesses and governments must find new ways to involve young people, community groups, and workers in efforts to slash emissions and move economies away from extraction-based growth and consumption, and towards more regenerative models.
The Net-Zero Transition
Achieving net-zero emissions is necessary to avert a climate catastrophe. And getting there in time to meet the goals of the Paris Agreement on climate change will require massive, transformative action across the global economy. Practices, production, and supply chains will all need to move away from fossil fuels, while land degradation and other sources of emissions must be curbed as we move towards clean energy, clean manufacturing, and sustainable land use. This global net-zero transition will require major investment; it presents many opportunities for businesses. Ultimately, it also calls for collaboration at all levels of society – including national governments, local authorities, and people.
The Need for Net Zero
Reaching net-zero emissions is not just a trendy target, it is a scientific requirement to stabilize global temperatures
For every tonne of carbon dioxide emitted into the atmosphere from fossil fuels, the global temperature rises – and stays elevated – for millennia. This means that the more CO2 we emit, the more it accumulates, and the hotter we get. In order to stop temperatures from rising, global emissions of CO2 must reach net zero. And to hold the rise close to the widely-shared goal of 1.5ºC above pre-industrial levels, net-zero CO2 must be achieved by mid-century. Net zero involves either stopping all emissions completely, or, more likely, balancing any further emissions with removals from the atmosphere. Emissions of other greenhouse gases, such as methane and nitrous oxide, are also adding to global heating. While these may not be as long-lived as CO2, the more we can reduce them, the further we can limit rising temperatures. The Paris Agreement on climate change commits governments to limiting global warming to well below 2ºC, and to pursuing efforts to hold it to 1.5ºC. The agreement stipulates that in order to achieve this, the world should reach a balance between sources and sinks of greenhouse gases from human activity.
While the Paris Agreement sets the global objective, the actions necessary to achieve it are driven at national, regional, municipal, and corporate levels. In 2021, the European Commission unveiled its “Fit for 55” plan – a roadmap for cutting emissions by 55% by 2030 from 1990 levels, and moving towards net-zero emissions by 2050. China announced plans in 2020 for its emissions to peak around 2030, and for reaching net-zero emissions by 2060. In early 2021, the US committed to re-joining the Paris Agreement, and a year later passed the landmark “Inflation Reduction Act,” allocating $391 billion to climate solutions. These are just some of the hundreds of national and regional governments that have so far set net-zero targets. Meanwhile a third of the 2,000 largest public companies have pledged to achieve net zero. There is broad interpretation of what net zero means, though related definitions and best practices are becoming clearer; net-zero strategies should include comprehensive and front-loaded reductions in emissions, cautious and well-regulated use of carbon removal and of offset credits. They should also align with other goals such as equity, sustainable development, and harnessing new economic opportunities.
Financing the Transition
Net-zero emissions requires up-front investment and fiscal policies that make key technologies affordable and scalable
Achieving net zero will require significant investment across all economic sectors. Estimates of how much is needed to fund global decarbonization range from roughly $800 billion to as much as $5 trillion per year. Whatever the final amount, the bulk of this investment should be dedicated to supporting a transition of the power sector away from fossil fuels to clean electricity generation – and spurring a resulting increase in demand from electrification of end uses. Within this sector, money must flow into wind, solar, hydropower, and other renewable energy technologies, as well as associated infrastructure and energy storage. The Energy Transitions Commission, a global coalition of energy leaders, estimates that this will require $1.1 trillion annually over the next few decades. Other sectors requiring related investment include buildings, at $665 billion per year, industry at $225 billion, and transport at $70 billion. Investment in these areas will contribute to electrification, the implementation of alternative fuels, energy efficiency measures, and materials recycling. Meanwhile land sectors will require between $100 billion and $300 billion in investment per year.
There is, however, a significant gap between the actual level of investment being made and the amount needed for a swift transition. In 2019-2020, total annual investment flows directed at mitigation were estimated at $571 billion, which provides an upper bound on clean energy investments. This indicates that actual investments may be trailing targets by as much as an order of magnitude. The shortfall is not due to a lack of technology, or to exorbitant investment requirements – but rather to a shortage of supportive policies and a dearth of coordinated international action. Solutions do exist to ensure that these flows occur. A particularly instructive blended finance fund is Climate Investor One. Developed by the Dutch development bank, FMO, and focused on Africa, the Asia-Pacific region, and Latin America, the fund aims to spur the development and construction of 30 wind, solar, and hydro-power projects over 15 years, attracting investors through its re-financing fund. Financial instruments such as these, coupled with supportive fiscal policy, must be expanded to ensure investment targets for the net-zero transition are met.
Net Zero cities
Cities must foster cooperation in order to tackle the ecological, environmental, and social factors hindering the transition to net zero
Cities are well positioned to serve as innovation hubs helping to lead the charge on experimental green initiatives. Urban areas consume more than an estimated 65% of the world’s energy, and account for 70% of emissions. Carbon dioxide emissions from cities can be comprehensively reduced, however, by switching from fossil-fuel-derived power to clean electricity (sourced from solar, wind, geothermal, and other renewables), by providing more decisive support for the implementation of green construction and land use, and by working to create a more circular economy that emphasizes reuse in order to eliminate waste. National governments should endeavour to encourage greater cooperation among local authorities, businesses, and the public by providing the attractive financial incentives necessary to nudge consumers to start making energy-saving improvements to their houses. Cities can also dramatically cut their carbon emissions by actively promoting and enhancing low-carbon alternatives for transportation (not least public transport systems), reducing waste generation, improving waste management, and making needle-moving investments in emerging industries that are focused on developing both low-carbon and carbon-removing technologies.
Carbon neutrality and sustainable urban planning can work in tandem with social and economic development. Social equity, in the form of affordable housing, access to universal basic services (water, sanitation, education), and affordable public transportation are vital urban priorities. Policy approaches must therefore consider the impact of climate change from a social justice perspective, and reduce both carbon emissions and social inequality. The International Energy Agency estimates that the net-zero transition may create 30 million jobs by 2030. However, to avoid worsening inequality, policy support should be provided to the estimated five million fossil-fuel production workers as part of this transition. Additionally, introducing urban agriculture and fostering rural-urban interdependence can bolster food security while also enabling rural areas to benefit from improving economic, educational, health, and social opportunities. Overall, it is vital that net-zero pledges are not only science-backed, but also incorporate policy measures and targeted initiatives encouraging constructive cooperation among governments, the public, and businesses. Regular reporting and tracking of emissions must be commonplace, and the priority should be direct decarbonization rather than buying offset credits for avoided emissions.
Reducing energy and material waste
A more efficient, circular economy would rapidly and decisively cut emissions
The reduction of both energy and material waste is a key pillar of any credible net-zero plan. The energy used to produce materials that quickly cycle into waste systems – such as household items and building materials – is one of the biggest sources of fossil fuel emissions. While the production of energy and its consumption (via buildings and transportation) together generate 55% of global greenhouse gas emissions, the remaining 45% is directly linked to both the production of goods and the management of land – with more than 20% of that attributed specifically to material production. Global emissions can be cut to as much as 70% below baseline scenarios by mid-century through efficiency measures alone. Not only does it benefit the climate to reduce energy waste, it can also have a profound economic payoff by creating jobs and substantially increasing investment returns. In the US, tripling rates of primary energy efficiency and increasing the renewable energy supply by five times relative to 2010 levels could potentially generate some $5 trillion in cost savings – and reduce carbon dioxide emissions by up to 86% by 2050.
Policies designed to help achieve net-zero emissions should therefore incentivize businesses to minimize waste during the entire lifecycle of materials – from production, to use, re-use, recycling, reprocessing, and retirement. The fostering of such a holistic approach to manufacturing can be bolstered by tax reforms that promote energy efficiency. Increasing a product’s durability through better design and maintenance is an intrinsically more labour-intensive method, and can lead to significant gains in employment. According to one estimate, extending the active life of clothing by nine months may reduce the emissions associated with that product by 27%. Such circular design practices, if applied more broadly, could significantly reduce global emissions. One of the cornerstones of the European Union’s “European Green Deal,” unveiled in 2019, is the “Circular Economy Action Plan.” This includes making sustainable products the norm within the bloc, empowering consumers to move economies in a more circular direction, and focusing in particular on sectors that tend to use the most resources but also demonstrate a significant potential for circularity – such as electronics, packaging, and food.
Clean Industry
Mining and manufacturing can contribute to net zero by shifting to carbon-free and carbon-storing products
Heavy industry is responsible for nearly a quarter of global emissions, and is considered one of the most challenging sectors when it comes to making progress on net zero. Industrial emissions come either from chemical processes, or from the power and heat needed to run operations. Industrial products like cement, steel, and petrochemicals represent about half of all heavy industry – and the use of high-temperature heat in these sectors accounts for about 10% of all global emissions. Switching to zero-carbon fuels (such as clean hydrogen, ammonia, and biofuels), or to the electrification of heat, could contribute significantly to the decarbonizing of heavy industry – provided that these methods are genuinely derived from sustainable, zero-emissions sources. Thanks in large part to improved heat management technologies and emerging energy efficiency solutions, carbon reductions even in the most hard-to-abate sectors are now possible. Industry has multiple opportunities to transition from being a source of carbon dioxide to an absorbent sink, not least through technologies like direct air capture (DAC) to extract CO2, or via the use of biomass coupled with carbon capture and storage.
In Australia, a shifting political appetite for comprehensive green policies has encouraged a number of the biggest heavy-industry firms to join an initiative to reduce emissions from their supply chains – with one report estimating an 88% potential reduction in greenhouse gas emissions in these sectors. The top three mining companies in the world are among the 50 corporations responsible for about half of all worldwide industrial greenhouse gas emissions. Yet, the mining sector could potentially contribute significantly to the global transition to net-zero emissions. A potential pathway for aggressively decarbonizing the mining industry has already become apparent. The world’s first all-electric mine, for example, and first all-renewable-and-electric mine, have each now been opened (the ribbon cutting for Newmont Goldcorp’s all-electric gold mine in Canada took place in 2019). Policies to help the industry successfully achieve net-zero emissions should include incentives and requirements for the further transitioning to clean power and heat, in addition to the development of cost-competitive clean products. In the meantime, energy demand reduction and demand substitution will have important roles to play.
Clean Energy
Net zero means a rapid phasing out of unabated fossil fuels as they are replaced by electrification and alternative fuels
The majority of global greenhouse gas emissions come from the use of coal, oil, and gas for energy. We use this energy to power electrical devices, for lighting, heating, and cooling, and for transport. Rapid decarbonization of the power sector is key for the transition to net zero, which requires low-carbon energy sources such as renewables, nuclear power, and sustainable biomass, and the deployment of carbon capture and storage systems. These will reduce direct emissions from power generation, and enable other activity currently using fossil fuels to be electrified. Decarbonization of transport is crucial, as it is one of the most energy-intensive sectors and represents a third of total final energy consumption. This can be achieved by switching to electric vehicles or alternative fuels such as biofuels, synthetic fuels, or hydrogen, and by cycling, walking, and using more public transportation. Equally important is heat for homes and industry, which accounts for 50% of global energy consumption. While cost, limitations on maximum temperature output, and limited incentives are currently roadblocks for scaling up zero-carbon heating technologies, advances in heat management and energy efficiency solutions are making carbon reductions increasingly possible.
Renewable electricity sources such as wind and solar power have recorded dramatic declines in cost over the past half century, and have become increasingly affordable in many places. In addition, innovation related to energy storage has significantly improved our collective capacity to manage the intermittency of renewables – resulting in cheaper and more efficient energy systems. A study published by experts at the University of Oxford has shown that a clean energy system will be trillions-of-dollars cheaper to run than the current, fossil-fuel based system. The more renewables are deployed, the greater the fall in related costs – and the more clean electricity becomes available for a wide range of end uses. In Kolkata, India, for example, the tram network is being revived as a way to reduce the carbon emissions generated by private vehicles, and to generally improve air quality. The electric trams in that city offer air conditioning for comfort, and for added appeal a tram library has been launched that offers free Wi-Fi, books, art, and other educational materials. This moving library is a means to draw students back onto public transport, and enable them to spend their travel time productively.
CO2 capture utilization and storage
Legacy carbon dioxide emissions must be removed as a new, net-zero-carbon economy is being built. CO2 capture, utilization, and storage have the potential to both contribute to gigatonne-scale removal, and serve as a source of fossil-free carbon products. By 2050, CO2 storage and utilization could each amount to as much as 27 gigatonnes annually, and generate as much as $4.4 trillion. Currently, however, the world’s largest direct-air carbon dioxide capture facility, ClimeWorks’ Orca plant in Iceland, has a capture and storage capacity of just 4,000 tonnes per year. The urgent need to build a new and complex carbon capture and storage industry at scale means greater investment is required – as is strategic, global action.
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Global Climate Litigation Report 2023
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UNEP Strategy for People and Planet 2022-25
Three interconnected crises ‒ climate change, biodiversity loss and pollution ‒ are putting global economic and social well-being at risk. They undermine opportunities to reduce poverty and improve lives, and they complicate the response to the COVID-19 crisis.
The Medium Term Strategy (MTS) is UNEP’s vision for reversing that trajectory. The MTS articulates UNEP’s role in delivering the promises of the 2030 Agenda, as well as the United Nations Conference on Sustainable Development (Rio+20) and its outcome document, “The Future We Want.” The strategy outlines how UNEP will strengthen the environmental dimension of the 2030 Agenda during the period 2022‒2025, supporting countries to deliver on their environmental commitments under international agreements.
UNEP will step into this period by driving transformative, multi-stakeholder actions that target the causes of climate change, biodiversity loss and pollution. In doing so, UNEP will ensure that science remains at the centre of decision-making processes, and that environmental rule of law continues to underpin global environmental governance. UNEP will boost efforts to use digital technologies for inclusive, transparent and innovative outcomes.
https://unfccc.int/sites/default/files/resource/CNN%20Guidelines.pdfRecognizing the complexity and interconnectedness of climate change, biodiversity loss and pollution, the MTS employs seven interlinked subprogrammes for action: Climate Action, Chemicals and Pollutions Action, Nature Action, Science Policy, Environmental Governance, Finance and Economic Transformations and Digital Transformations.
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Climate Action Note – data you need to know
The world is in a climate emergency – “a code red for humanity” according to the UN Secretary-General. The concentration of greenhouse gas (GHG) emissions in the atmosphere is wreaking havoc across the world and threatening lives, economies, health and food. The world is far from securing a global temperature rise to below 2°C as promised in the Paris Agreement. With a baseline in 1990, some countries are emitting more, some the same and others are emitting less.
The UNEP Climate Action Note shows you the global state of the climate emergency and its development. Click here to know more
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The Climate Neutral Now Initiative is one of several initiatives launched by the UNFCCC secretariat to increase climate action by engaging non-Party stakeholders (sub-national governments, companies, organizations, individuals). It is a much wider tool for awareness-raising, capacity building, partnership development, promoting and facilitating the estimation of carbon footprints, the reduction of those footprints, and voluntary compensation (offsetting).
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Technologies that we use to address climate change are known as climate technologies. Climate technologies that help us reduce GHGs include renewable energies such as wind energy, solar power and hydropower. To adapt to the adverse effects of climate change, we use climate technologies such as drought-resistant crops, early warning systems and sea walls. There are also ‘soft’ climate technologies, such as energy-efficient practices or training for using equipment.
Nature Action
Nature underpins the functions and health of the planet and thereby the existence and health of humankind.
Three quarters of land and two thirds of oceans are now impacted by humans and many of nature’s contributions to people are eroding. At the same time, people’s needs are not being met sustainably – if at all. An estimated 720 to 811 million people suffered from hunger in 2020 ( FAO, 2021) and 2.3 billion people in 2021 lived in water-stressed areas (UN Water). By 2030, the world will require even more resources, including more water and more food, while nature loss is expected to continue to accelerate. The only way to ensure a resilient future for our planet and communities is through the conservation, restoration and sustainable use of nature.
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Chemicals and Pollution Action
UN Environment and its partners work towards the goal of the World Summit on Sustainable Development: to minimize the adverse effects of chemicals on human health and the environment.
To this end, we work closely with governments, industry, and civil society organizations around the world to develop mainstream solutions for the sound management of chemicals and waste.
Chemicals and waste are integral to almost all sectors of society, bringing important benefits in areas from medicine and agriculture to consumer goods, clean technologies and poverty alleviation. While chemicals and waste are major contributors to world economies, their sound management is essential to avoiding risks to human health and ecosystems and substantial costs to national economies.
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Climate Planning and Policy
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GOAL 13 : CLIMATE ACTION
Climate Change
‘Climate change is now affecting every country on every continent. It is disrupting national economies and affecting lives, costing people, communities and countries dearly today and even more tomorrow. Weather patterns are changing, sea levels are rising, weather events are becoming more extreme and greenhouse gas emissions are now at their highest levels in history. Without action, the world’s average surface temperature is likely to surpass 3 degrees centigrade this century. The poorest and most vulnerable people are being affected the most. Affordable, scalable solutions are now available to enable countries to leapfrog to cleaner, more resilient economies. The pace of change is quickening as more people are turning to renewable energy and a range of other measures that will reduce emissions and increase adaptation efforts. Climate change, however, is a global challenge that does not respect national borders. It is an issue that requires solutions that need to be coordinated at the international level to help developing countries move toward a low-carbon economy. To strengthen the global response to the threat of climate change, countries adopted the Paris Agreement at the COP21 in Paris, which went into force in November of 2016. In the agreement, all countries agreed to work to limit global temperature rise to well below 2 degrees centigrade. As of April 2018, 175 parties had ratified the Paris Agreement and 10 developing countries had submitted their first iteration of their national adaptation plans for responding to climate change.’
The results of the COP26 climate summit in late 2021 did not please everyone, but the talks served to focus the world’s attention on the steps now necessary to avert catastrophe. 2020 tied with 2016 as the hottest year on record, and despite the stated aim of the Paris Agreement on climate change to limit warming to well below 2°C above pre-industrial levels – by having countries voluntarily reduce emissions of carbon dioxide and other greenhouse gases – the world is on track to exceed that threshold. Even 1.5°C in warming is likely to lead to punishing environmental impacts, and widespread displacement.
Climate action through education
In 29 countries, 25% of people with less than a secondary education expressed concern for the environment compared to 37% of people with secondary education and 46% of people with tertiary education, research shows. With higher levels of education, people across many different societies show greater concern about the well-being of the environment. Scientific education also helps people to understand the effects of climate change and inspires solutions to help curb these effects. Specific climate change education is beginning to find its way into the curriculum of current and future business leaders. Strategies to limit the magnitude of climate change, adapt to the impacts, and develop effective responses to climate change include business schools preparing their students to be environmental and social stewards and ethical actors in the workplace.
In doing so, faculty are drawing on interdisciplinary resources to teach sustainability and instill habits and mindsets that will serve students well in their careers. This education-based response to climate change also includes social enterprises that create sustainable livelihoods by training entrepreneurs to provide customers with sustainable life-improving and affordable products. Educating people in climate sensitive areas and lines of work, such as people living on islands and people working in agriculture, teaches them how to respond to natural disasters, prevent them, preserve the environment and protect the people and the planet.
Understanding Climate Risks
Extreme weather, rising sea levels, and food and water scarcity are becoming a reality
All ten of the hottest years on record have occurred since 2005. The global average temperature is now about 1°C above the pre-industrial average, and increasing at a rate of about 0.2°C per decade. This warming is largely the result of human activity. Carbon dioxide released by burning fossil fuels, and through agricultural activity like farming, has raised the pre-industrial concentration of carbon dioxide in the atmosphere by about one-third to more than 400 parts per million – which has in turn intensified the trapping of heat. Global warming is causing sea levels to rise and is changing precipitation patterns, with increased rainfall in some regions and more extreme drought in others. The world experienced a staggering number of climate-related disasters in 2020 – causing damage from hurricanes, wildfires, droughts, and floods that resulted in financial losses totalling more than $200 billion, according to the German reinsurer Munich Re. The US National Climate Assessment issued in late 2018 projected yearly related losses of $300 billion in the US alone by the end of this century.
The Paris Agreement on climate change aims to limit global average temperature rise to well below 2°C above pre-industrial levels. However, a 2018 report published by the Intergovernmental Panel on Climate Change vividly illustrated the need to limit warming to no more than 1.5°C; many ocean ecosystems, including the majority of the world’s warm water coral reefs, are likely to disappear if warming exceeds this level. The average global rise in sea level – which is projected to be about half a metre by 2100, if warming reaches 2°C – could be reduced by 20% by hitting the 1.5°C target, thereby protecting an estimated 10 million vulnerable people. A slower temperature rise would also help affected regions better adapt to climate change. In order to meet the 1.5°C target, however, countries must go well beyond their initial Paris Agreement pledges and commit to net-zero emissions by the year 2050. Achieving this will require far-reaching changes to many aspects of modern society as we know it, but would also help create a more sustainable, equitable world.
Investing in Climate Action
Strategic investments can stimulate economies and build climate resilience
Investments in green transportation, sustainable agriculture, and climate-resilient infrastructure can have a multiplier effect. According to the Business Commission for Sustainable Development, investing $320 billion annually in sustainable business models in developed economies could unlock $2.3 trillion in additional annual investment by 2030. A report published by the Organisation for Economic Co-operation and Development found that better integrating economic and climate action could increase average economic output in G20 countries by almost 3% by 2050. And, the International Finance Corporation has identified nearly $23 trillion in climate-smart investments in emerging markets through 2030. Investment in decarbonization surpassed $500 billion for the first time in 2020, despite COVID-19, according to Bloomberg New Energy Finance, and direct investment in electrical power capacity from renewable energy exceeded $300 billion for the second time (following 2017) – including $50 billion in offshore wind. Corporations are signing long-term, large-scale renewable energy contracts, and the Green Climate Fund (an element of the Paris Agreement) is sponsoring nearly 150 projects in developing countries with over $7 billion in committed financing – though still short of the $100 billion targeted to be available annually by 2020.
Governments can catalyse private investment in climate resilience by providing incentives and funding innovation. Businesses can reinforce government action in turn, by making climate-smart investments and by supporting the United Nations 2030 Agenda for Sustainable Development. According to the New Climate Economy report published in 2018 by the Global Commission on the Economy and Climate, $90 trillion will be spent globally through 2030 on new infrastructure – which exceeds the value of all current infrastructure stock. Developing countries are expected to account for roughly two-thirds of this new infrastructure investment, which can be made sustainable and compatible with climate goals through relatively modest additional upfront costs. Ultimately, these upfront costs can be more than offset by efficiency gains and fuel savings. The potential rewards are enormous; the Global Commission on the Economy and Climate’s report projects an economic gain of $26 trillion through the year 2030 if investments are made in low-carbon technologies and resilient infrastructure, rather than conducting business as usual. Such investments offer an unprecedented opportunity to leapfrog the wasteful, polluting infrastructure of the past, and accelerate the global transition to efficient, climate-resilient, and low-carbon economies.
Social Cost of Carbon
Pricing carbon can reduce emissions and enable smarter planning
The cost of carbon-intensive goods like fossil fuels should reflect the damage they cause. Even a small charge on carbon emissions can help insure against climate risk and incentivize the use of (and investment in) green energy. Economists have zeroed in on two forms of carbon pricing: emissions trading schemes (or “carbon markets”), and carbon fees or taxes. According to the World Bank, more than 57 carbon pricing initiatives are in place globally. And, more than 95 countries representing 55% of greenhouse gas emissions are considering carbon pricing to help meet their pledged reductions. Barriers to taxing carbon persist, however. In 2018, France suspended a planned tax hike on gasoline and diesel fuel following violent demonstrations. At about the same time, voters in the state of Washington rejected a ballot proposal to tax carbon dioxide emissions (the proposal had been aggressively targeted with an ad campaign funded by the fossil-fuel industry). Clearly, new approaches are needed to gain public support, possibly by refunding proceeds to low-carbon consumers or through simultaneous reductions in non-carbon-related taxes.
The High-Level Commission on Carbon Prices, launched in 2016 with support from the World Bank, engages economists and energy experts in designing effective carbon pricing. A private-sector initiative led by CDP (formerly the Carbon Disclosure Project) and the We Mean Business Coalition complements this effort, which in turn goes hand-in-hand with a G20 initiative to reform fossil-fuel subsidies that lead to wasteful energy consumption. Institutional investors are paying more attention to carbon risk management by pushing companies to set an internal price on carbon, assess their exposure to climate-based risks, and allocate capital to a low-carbon economy. BlackRock, the world’s largest asset manager, signalled a significant shift in December 2020 by announcing that climate risk would be incorporated “across our platforms as a critical investment risk.” In the past forty years, our understanding of the economic forces underlying climate change has advanced considerably. In recognition of this, the 2018 Nobel Memorial Prize in Economic Sciences was awarded to Yale economist William Nordhaus, for his work on integrating climate change and carbon pricing into macroeconomic analysis.
Transitioning to Clean Energy
A faster transition is the most effective option for combatting climate change
“Electrification of everything” has become a catchphrase attached to the transition to a net-zero economy – but massive blackouts in Texas, California, and other parts of the world have shown that power infrastructure must become more resilient, smarter, and flexible. Renewable energy accounted for about 14% of all global energy in 2020, a slight increase compared with the prior year thanks to a mix that included solar, wind, geothermal, and modern biomass energy (alongside traditional hydroelectric). Wind and solar are projected to provide abundant electrical power as a way to decarbonize; thanks to economies of scale and technologies like efficient solar cells and larger wind turbines, these energy sources now compete price-wise with fossil fuels. An analysis by the investment bank Lazard showed that during the past decade the “levelized” cost (over a farm’s lifetime) of energy from wind farms has decreased by two-thirds, and from utility-scale solar farms by nearly 90%. The emergence of new renewable energy markets has meanwhile reduced operating costs. In developing countries, renewable energy mini-grids are electrifying communities, while in developed countries solar power is reducing reliance on the grid, bolstered by renewable energy credits and tax incentives.
Decarbonizing transportation poses the biggest challenge. Germany and China have announced plans to phase out internal combustion engines entirely, and the number of electric vehicles on the road is projected to increase by more than 7,000% between 2017 and 2030. Still, this will account for less than 15% of the vehicles expected to be in operation by then. GM’s announcement in 2021 that it is going “all electric” by 2035 was the first of its kind for a major manufacturer, and will likely be followed. Aviation and shipping are on track to account for nearly 40% of carbon-dioxide emissions by 2050, though an Energy Transitions Commission report outlined a plan to cut emissions with smarter logistics that improve efficiency and temper demand for carbon-intensive transport. Still, the high cost of energy storage in batteries has prevented widespread adoption of intermittent renewable energy; massive improvement in energy density is needed for lithium-ion batteries to compete with liquid fuels. A cleaning-up of battery supply chains is necessary, from working conditions in mines that supply raw materials to the pollution associated with improper disposal. The World Economic Forum’s Global Battery Alliance was created in 2017 to address these challenges.
Building Climate Coalitions
Effective action requires engagement with many different stakeholders
Effective climate action will require commitments from a wide variety of players – businesses, national governments, international organizations, cities and regions, just to name a few. Businesses, regions and cities in particular took centre stage during the past few years, after the announcement that the Trump Administration planned to withdraw the world’s largest economy from the Paris Agreement on climate change. While that withdrawal effort was later reversed, it provided an opportunity for others to step forward. The We Are Still In coalition, which includes investors, companies, and cities, gathered thousands of signatures in support of a pledge to uphold the Paris Agreement. Meanwhile We Mean Business, a coalition of non-profit organizations dedicated to partnering with the private sector, has engaged more than 1,500 companies (representing nearly $25 trillion in market value) to act on climate change. More than 150 of the companies affiliated with the effort have committed to a goal of 100% renewable power, and many have committed to establishing science-based targets for reducing emissions of greenhouse gases in their operations.
Public-sector coalitions engaging local and regional governments are also becoming more prominent. The C40 Cities Climate Leadership Group, for example, is made up of more than 90 cities that have committed to 10,000 distinct “actions” to combat climate change. C40 cities represent about one quarter of the global economy and roughly 8% of the world’s population, and aim to stir a global conversation that hastens progress towards a low-carbon economy. The Global Covenant of Mayors for Climate & Energy provides a similar platform for more than 9,000 cities that in total comprise about 10% of the world’s population. Climate Action 100+ is yet another example of a global initiative systematically engaging with major corporate greenhouse gas emitters around the world. In addition, the World Economic Forum’s Alliance of CEO Climate Leaders has sought to foster public-private collaboration that can support the Paris Agreement and the United Nations’ Sustainable Development Goals. By joining forces with these coalitions, policy-makers, organizations, and companies can demonstrate a real commitment to climate action, share best practices, and demonstrate leadership.
Green Finance
Global energy investment is poised to rebound post-pandemic, but more must be directed at the clean energy transition
According to a report published in 2017 by the International Finance Corporation, building climate-smart infrastructure would require about $90 trillion in investment over the subsequent 15 years, with most of that in developing and middle-income countries. As of May 2021, the World Bank said it had issued the equivalent of roughly $16 billion in so-called green bonds, or debt raised specifically for environmentally-focused investments, since 2008. These bonds were issued in 23 different currencies, the World Bank said, while noting that their triple-A credit quality is the same as for any of its other bonds. Amid growing political interest in infrastructure investment as a means to boost productivity and create jobs, the appeal of sustainable infrastructure has long seemed poised to grow. However, there have been troubling signs; a political shift in the US in recent years, for example, resulted in the withdrawal of money promised to the United Nations-backed Green Climate Fund (the US has since promised to make good on its funding pledges). The continued, healthy expansion of sustainable infrastructure will require a new architecture of public-private investment, supported by overseas development assistance, government spending, and sovereign wealth funds.
Much of the interest in green bond issuance has been driven by China, as the Bank of China and the Shanghai-based New Development Bank began issuing their first green bonds in 2016. However, investment in renewable energy technology has disappointed recently, according to the International Energy Agency; it reported in 2021 that while global investment in energy was poised to rebound following a COVID-19-related decline, spending on clean energy transitions needs to accelerate. While renewables were expected to account for 70% of all investment in new power generation capacity in 2021, according to the agency, much greater resources must be directed to clean energy technologies in order to put the world on track to hit net-zero emissions by 2050. Cost may play a decisive role in whatever progress is made. In 2021, the International Renewable Energy Agency said renewable power generation costs had fallen sharply over the previous decade, driven by technology innovation and economies of scale; costs for electricity from utility-scale solar photovoltaics fell by 85%, for example. IRENA added that new solar and wind projects are increasingly undercutting even the cheapest of existing coal-fired power plants.
Sustainable Land Use
New approaches to land use can address climate change while preserving food security and biodiversity
About a quarter of all global greenhouse gas emissions result from agricultural activity on cultivated land that is cumulatively the size of Asia. Expanding and increasingly wealthy populations in developing countries will require increasing amounts of agricultural acreage, often obtained through deforestation that adds to greenhouse-gas emissions. This growing food demand must be met, but as land degradation is curbed and forests are better preserved. A tally published in the journal Nature in 2015 counted 3 trillion trees on Earth, which were being cut down at a rate of about 15 billion per year (researchers have estimated that the global total has dropped by nearly half since the advent of agriculture). There is an increasing recognition of the role that natural forest regrowth can play in removing carbon dioxide from the atmosphere. Tropical Forest Alliance 2020, a global partnership of governments, corporations and civic organizations, promotes sustainable forestry by subtracting deforestation from the process of cultivating products like palm oil, pulp, and paper. Innovation could further reduce the environmental impact of land use, while bolstering carbon storage, water flow regulation, and biodiversity.
However, in developing countries where land and water resources are under the most stress, new innovation is constrained by limited public budgets. More private sector investment is therefore needed. The Food and Agriculture Organization of the United Nations has found that investment in land-use R&D can generate rates of return as high as 75%, and innovation aimed at sustainable land use is a key part of the Fourth Industrial Revolution – as satellites, drones, and autonomous vehicles can monitor soil and water conditions and crop health, big data can be tapped to send timely recommendations to a local farmer’s mobile phone, biotechnology can breed more resilient crops, renewable energy generation can be distributed, and fintech can be delivered to communities in need. The World Economic Forum’s New Vision for Agriculture, in partnership with the G7, has engaged roughly 600 organizations to work towards the UN 2030 Agenda for Sustainable Development. Effective innovation and collaboration, promoted through the Forum’s Innovation with a Purpose initiative, are essential for more sustainable land use that helps mitigate climate change – all while feeding the world’s growing population.
Future of the Environment
Decisions made in the next few years will determine whether our existence on Earth as we know it will continue, or collapse as a result of human activity. The need to change the ways societies interact with and affect the environment becomes more urgent as the tangible impacts of a planetary crisis accumulate – generating daily headlines about extreme weather events, pandemics, pollution, and a mounting shortage of essential natural resources. As the COP26 climate summit demonstrated, effectively addressing these challenges will require increased commitments from the public and private sectors.
Decoupling Growth from Resource Use
Science suggests breaking the destructive link between economic growth and natural resource use is possible
Natural resources underpin the global economy, as biomass, fossil fuels, metals, minerals, arable land, and water supply everything from the food we eat to the buildings we live in. These resources are also a bridge between economic activity and climate change, biodiversity loss, pollution, and poor health. As the global economy and population have expanded, the use of natural resources has more than tripled over the past five decades – with dire consequences for the environment and human health and well-being. According to the International Resource Panel’s report Global Resources Outlook 2019, the extraction and processing of materials including metals, minerals, fossil fuels and biomass are responsible for half of all global climate change, more than 80% of water stress and land-related biodiversity loss, and a third of all air pollution. According to IRP estimates, barring drastic change, global resource consumption will double by 2060. This rate of growth would not only be catastrophic for the climate and for biodiversity, it would also further undermine notions of fairness and equality – as these resources would be used up inordinately by high-income countries, while related negative impacts are primarily absorbed by the less fortunate.
The average person living in a high-income country consumes 60% more natural resources than their counterpart in an upper-middle-income country, and more than 13 times that of a counterpart in a low-income country. In every type of economy, the decoupling of natural-resource use (and related environmental impacts) from economic growth and human well-being is necessary to transition to a more sustainable future. Better resource management is key in this regard – for example, IRP modelling shows that by implementing proper resource efficiency, circular economy practices, and sustainable consumption and production policies, the growth of global resource use could slow by 25%, greenhouse gas emissions could decrease by 90%, forested areas and natural habitats could increase by 11%, and the global economy could grow by 8%, all by the year 2060. In particular, by managing natural resource use in more efficient and sustainable ways along some of the most resource-intensive value chains, such as those used for food, construction, mobility systems, and textiles (among others), we can better ensure economic competitiveness, bolster social equality, more aggressively tackle environmental challenges, and advance the Agenda 2030 Sustainable Development Goals.
Ecosystem Restoration
The loss of natural habitats is a driver of zoonotic diseases like COVID-19
The world has reached a tipping point. Simply conserving nature and critical ecosystems will no longer be enough to avert catastrophic climate change and a mass extinction. Humanity needs to bring back what has been lost, by restoring degraded ecosystems – in order to achieve the goals outlined in the Paris Agreement. Restoring forests, peatlands, and mangroves (and other natural solutions) can provide more than a third of the greenhouse gas mitigation needed by 2030. And, by halting and reversing the degradation of land and the ocean, we can prevent the loss of one million endangered species. Scientists say restoring just 15% of ecosystems in priority areas and thereby improving habitats can cut extinctions by 60%. Restoration is also key to human prosperity and well-being; vibrant ecosystems provide the food, water, health, and security that a growing global population needs more of every day. Halting the decline of ecosystem services (such as climate control or oxygen production) could prevent the loss of $10 trillion in global income by 2050 – currently, some 2.3 billion people suffer from ecosystem degradation, which undercuts their access to safe food and water.
Restoring ecosystems is critical for global health. The loss of natural habitats is a key driver of zoonotic diseases such as COVID-19, for example, and forest restoration and better farm practices could reduce the pollution of water supplies in 81% of the world’s cities. Adding urban trees can blunt the impacts of pollution and excessive heat, while boosting mental and physical well-being. More than 115 countries have included ecosystem restoration as part of their commitments to the Paris Agreement and the Sustainable Development Goals, covering roughly one billion hectares – an area larger than China. However, the status of actual implementation is uncertain (ecosystem restoration must follow strict guidelines to avoid monocultures and invasive species, and to ensure that local communities benefit). The United Nations General Assembly has declared the years 2021 through 2030 the UN Decade on Ecosystem Restoration. Led by the UN Environment Programme and the Food and Agriculture Organization, the UN Decade is designed to prevent, halt and reverse the degradation of ecosystems worldwide. It will draw together political support, scientific research and financial muscle to revive millions of hectares of terrestrial and aquatic ecosystems.
Interconnected Risks
Environmental dangers threaten economic growth and viability, and can trigger violent conflict
The World Economic Forum’s Global Risks Report has underlined a series of interconnected environmental risks, related to extreme weather events, climate change, and water crises. These are all closely tied to other categories of risk; changing weather patterns or water crises, for example, can trigger or exacerbate geopolitical and social issues like domestic or regional conflict, not to mention involuntary migration – particularly in politically-fragile areas. A lack of effective management of the ocean, the atmosphere, and climate systems generally can therefore have local as well as global consequences, which extend well beyond the environment. While non-environmental risks have typically flared and then subsided as conditions have varied, or as the international community has mobilized to contain them, environmental issues consistently remain among the top global risks from year to year. This points to a systemic problem, and responding effectively has proven to be a challenge. While the Paris Agreement on climate change was ratified in 2017, for example, as of 2021 countries were still generally considered to be falling short on related commitments.
Even if countries do deliver on their Paris Agreement commitments, the United Nations Environment Programme has estimated that the world will still warm by as much as 3.2°C compared with pre-industrial levels – far above the targeted ceiling of 2°C. Meanwhile the impacts are spreading. According to the Internal Displacement Monitoring Centre, an annual average of 25.3 million people were displaced by climate- or weather-related events between 2008 and 2016, and the Centre for Research on the Epidemiology of Disasters has estimated that 96 million people were affected by natural disasters in 2017 alone. Entire communities have already had to be relocated or plan to relocate amid rising sea levels. A World Bank report suggested that water stress may trigger extreme societal problems in regions such as the Middle East and the Sahel – where water scarcity could affect as much as 6% of local GDP by 2050. The same report projected that water availability in cities could decline by as much as two-thirds between 2015 and 2050, due to climate change and increased competition within the energy and agriculture sectors.
People Centered Climate action
Climate justice means focusing on equitably sharing burdens
The burdens of climate change should be shared equally – between the rich and poor, women and men, and young and old. Yet, in reality the impacts are felt most acutely by those who have contributed least to the problem. In addition to recognizing that different groups are affected in different ways by the climate crisis, more attention should be paid to the fact that climate impacts can exacerbate already inequitable social conditions. For example, extreme heat affects the elderly, those with disabilities, or people suffering from chronic illness more severely, while people already struggling with food insecurity are impacted inordinately by diminished food supplies due to drought and flooding, and communities of colour are often subjected to relatively poor air quality, urban heat islands, and other problems that become more acute as the planet warms. Efforts to achieve climate justice are gaining greater acceptance and prominence; the global Fridays For Future youth strikes have injected new energy into the movement, and illustrated the need to embrace the next generation as facilitators and creators of fresh opportunity – and not merely as passive beneficiaries of climate action.
Climate justice means being clearly focused on equitably sharing the burdens of climate change. There is also a need to focus on the practical means to achieve the new, green economy. Just as the effects of climate change often have different social, economic, and public-health implications for marginalized and vulnerable groups, the actions undertaken to fight climate change can adversely impact certain people if not properly conceived and pursued. There is a growing awareness of the need for a “just transition” that not only creates jobs to those who lose theirs to climate progress, but also recognizes that efforts to achieve a low-carbon economy must be implemented in ways that respect the rights of the workers and communities most impacted by changing industries, economies, technologies, and societies. Underpinning this concept is the core human rights principle of participation – to involve those affected by a potential action in the decision-making process. Businesses and governments must find new ways to involve young people, community groups, and workers in efforts to slash emissions and move economies away from extraction-based growth and consumption, and towards more regenerative models.
The Net-Zero Transition
Achieving net-zero emissions is necessary to avert a climate catastrophe. And getting there in time to meet the goals of the Paris Agreement on climate change will require massive, transformative action across the global economy. Practices, production, and supply chains will all need to move away from fossil fuels, while land degradation and other sources of emissions must be curbed as we move towards clean energy, clean manufacturing, and sustainable land use. This global net-zero transition will require major investment; it presents many opportunities for businesses. Ultimately, it also calls for collaboration at all levels of society – including national governments, local authorities, and people.
The Need for Net Zero
Reaching net-zero emissions is not just a trendy target, it is a scientific requirement to stabilize global temperatures
For every tonne of carbon dioxide emitted into the atmosphere from fossil fuels, the global temperature rises – and stays elevated – for millennia. This means that the more CO2 we emit, the more it accumulates, and the hotter we get. In order to stop temperatures from rising, global emissions of CO2 must reach net zero. And to hold the rise close to the widely-shared goal of 1.5ºC above pre-industrial levels, net-zero CO2 must be achieved by mid-century. Net zero involves either stopping all emissions completely, or, more likely, balancing any further emissions with removals from the atmosphere. Emissions of other greenhouse gases, such as methane and nitrous oxide, are also adding to global heating. While these may not be as long-lived as CO2, the more we can reduce them, the further we can limit rising temperatures. The Paris Agreement on climate change commits governments to limiting global warming to well below 2ºC, and to pursuing efforts to hold it to 1.5ºC. The agreement stipulates that in order to achieve this, the world should reach a balance between sources and sinks of greenhouse gases from human activity.
While the Paris Agreement sets the global objective, the actions necessary to achieve it are driven at national, regional, municipal, and corporate levels. In 2021, the European Commission unveiled its “Fit for 55” plan – a roadmap for cutting emissions by 55% by 2030 from 1990 levels, and moving towards net-zero emissions by 2050. China announced plans in 2020 for its emissions to peak around 2030, and for reaching net-zero emissions by 2060. In early 2021, the US committed to re-joining the Paris Agreement, and a year later passed the landmark “Inflation Reduction Act,” allocating $391 billion to climate solutions. These are just some of the hundreds of national and regional governments that have so far set net-zero targets. Meanwhile a third of the 2,000 largest public companies have pledged to achieve net zero. There is broad interpretation of what net zero means, though related definitions and best practices are becoming clearer; net-zero strategies should include comprehensive and front-loaded reductions in emissions, cautious and well-regulated use of carbon removal and of offset credits. They should also align with other goals such as equity, sustainable development, and harnessing new economic opportunities.
Financing the Transition
Net-zero emissions requires up-front investment and fiscal policies that make key technologies affordable and scalable
Achieving net zero will require significant investment across all economic sectors. Estimates of how much is needed to fund global decarbonization range from roughly $800 billion to as much as $5 trillion per year. Whatever the final amount, the bulk of this investment should be dedicated to supporting a transition of the power sector away from fossil fuels to clean electricity generation – and spurring a resulting increase in demand from electrification of end uses. Within this sector, money must flow into wind, solar, hydropower, and other renewable energy technologies, as well as associated infrastructure and energy storage. The Energy Transitions Commission, a global coalition of energy leaders, estimates that this will require $1.1 trillion annually over the next few decades. Other sectors requiring related investment include buildings, at $665 billion per year, industry at $225 billion, and transport at $70 billion. Investment in these areas will contribute to electrification, the implementation of alternative fuels, energy efficiency measures, and materials recycling. Meanwhile land sectors will require between $100 billion and $300 billion in investment per year.
There is, however, a significant gap between the actual level of investment being made and the amount needed for a swift transition. In 2019-2020, total annual investment flows directed at mitigation were estimated at $571 billion, which provides an upper bound on clean energy investments. This indicates that actual investments may be trailing targets by as much as an order of magnitude. The shortfall is not due to a lack of technology, or to exorbitant investment requirements – but rather to a shortage of supportive policies and a dearth of coordinated international action. Solutions do exist to ensure that these flows occur. A particularly instructive blended finance fund is Climate Investor One. Developed by the Dutch development bank, FMO, and focused on Africa, the Asia-Pacific region, and Latin America, the fund aims to spur the development and construction of 30 wind, solar, and hydro-power projects over 15 years, attracting investors through its re-financing fund. Financial instruments such as these, coupled with supportive fiscal policy, must be expanded to ensure investment targets for the net-zero transition are met.
Net Zero cities
Cities must foster cooperation in order to tackle the ecological, environmental, and social factors hindering the transition to net zero
Cities are well positioned to serve as innovation hubs helping to lead the charge on experimental green initiatives. Urban areas consume more than an estimated 65% of the world’s energy, and account for 70% of emissions. Carbon dioxide emissions from cities can be comprehensively reduced, however, by switching from fossil-fuel-derived power to clean electricity (sourced from solar, wind, geothermal, and other renewables), by providing more decisive support for the implementation of green construction and land use, and by working to create a more circular economy that emphasizes reuse in order to eliminate waste. National governments should endeavour to encourage greater cooperation among local authorities, businesses, and the public by providing the attractive financial incentives necessary to nudge consumers to start making energy-saving improvements to their houses. Cities can also dramatically cut their carbon emissions by actively promoting and enhancing low-carbon alternatives for transportation (not least public transport systems), reducing waste generation, improving waste management, and making needle-moving investments in emerging industries that are focused on developing both low-carbon and carbon-removing technologies.
Carbon neutrality and sustainable urban planning can work in tandem with social and economic development. Social equity, in the form of affordable housing, access to universal basic services (water, sanitation, education), and affordable public transportation are vital urban priorities. Policy approaches must therefore consider the impact of climate change from a social justice perspective, and reduce both carbon emissions and social inequality. The International Energy Agency estimates that the net-zero transition may create 30 million jobs by 2030. However, to avoid worsening inequality, policy support should be provided to the estimated five million fossil-fuel production workers as part of this transition. Additionally, introducing urban agriculture and fostering rural-urban interdependence can bolster food security while also enabling rural areas to benefit from improving economic, educational, health, and social opportunities. Overall, it is vital that net-zero pledges are not only science-backed, but also incorporate policy measures and targeted initiatives encouraging constructive cooperation among governments, the public, and businesses. Regular reporting and tracking of emissions must be commonplace, and the priority should be direct decarbonization rather than buying offset credits for avoided emissions.
Reducing energy and material waste
A more efficient, circular economy would rapidly and decisively cut emissions
The reduction of both energy and material waste is a key pillar of any credible net-zero plan. The energy used to produce materials that quickly cycle into waste systems – such as household items and building materials – is one of the biggest sources of fossil fuel emissions. While the production of energy and its consumption (via buildings and transportation) together generate 55% of global greenhouse gas emissions, the remaining 45% is directly linked to both the production of goods and the management of land – with more than 20% of that attributed specifically to material production. Global emissions can be cut to as much as 70% below baseline scenarios by mid-century through efficiency measures alone. Not only does it benefit the climate to reduce energy waste, it can also have a profound economic payoff by creating jobs and substantially increasing investment returns. In the US, tripling rates of primary energy efficiency and increasing the renewable energy supply by five times relative to 2010 levels could potentially generate some $5 trillion in cost savings – and reduce carbon dioxide emissions by up to 86% by 2050.
Policies designed to help achieve net-zero emissions should therefore incentivize businesses to minimize waste during the entire lifecycle of materials – from production, to use, re-use, recycling, reprocessing, and retirement. The fostering of such a holistic approach to manufacturing can be bolstered by tax reforms that promote energy efficiency. Increasing a product’s durability through better design and maintenance is an intrinsically more labour-intensive method, and can lead to significant gains in employment. According to one estimate, extending the active life of clothing by nine months may reduce the emissions associated with that product by 27%. Such circular design practices, if applied more broadly, could significantly reduce global emissions. One of the cornerstones of the European Union’s “European Green Deal,” unveiled in 2019, is the “Circular Economy Action Plan.” This includes making sustainable products the norm within the bloc, empowering consumers to move economies in a more circular direction, and focusing in particular on sectors that tend to use the most resources but also demonstrate a significant potential for circularity – such as electronics, packaging, and food.
Clean Industry
Mining and manufacturing can contribute to net zero by shifting to carbon-free and carbon-storing products
Heavy industry is responsible for nearly a quarter of global emissions, and is considered one of the most challenging sectors when it comes to making progress on net zero. Industrial emissions come either from chemical processes, or from the power and heat needed to run operations. Industrial products like cement, steel, and petrochemicals represent about half of all heavy industry – and the use of high-temperature heat in these sectors accounts for about 10% of all global emissions. Switching to zero-carbon fuels (such as clean hydrogen, ammonia, and biofuels), or to the electrification of heat, could contribute significantly to the decarbonizing of heavy industry – provided that these methods are genuinely derived from sustainable, zero-emissions sources. Thanks in large part to improved heat management technologies and emerging energy efficiency solutions, carbon reductions even in the most hard-to-abate sectors are now possible. Industry has multiple opportunities to transition from being a source of carbon dioxide to an absorbent sink, not least through technologies like direct air capture (DAC) to extract CO2, or via the use of biomass coupled with carbon capture and storage.
In Australia, a shifting political appetite for comprehensive green policies has encouraged a number of the biggest heavy-industry firms to join an initiative to reduce emissions from their supply chains – with one report estimating an 88% potential reduction in greenhouse gas emissions in these sectors. The top three mining companies in the world are among the 50 corporations responsible for about half of all worldwide industrial greenhouse gas emissions. Yet, the mining sector could potentially contribute significantly to the global transition to net-zero emissions. A potential pathway for aggressively decarbonizing the mining industry has already become apparent. The world’s first all-electric mine, for example, and first all-renewable-and-electric mine, have each now been opened (the ribbon cutting for Newmont Goldcorp’s all-electric gold mine in Canada took place in 2019). Policies to help the industry successfully achieve net-zero emissions should include incentives and requirements for the further transitioning to clean power and heat, in addition to the development of cost-competitive clean products. In the meantime, energy demand reduction and demand substitution will have important roles to play.
Clean Energy
Net zero means a rapid phasing out of unabated fossil fuels as they are replaced by electrification and alternative fuels
The majority of global greenhouse gas emissions come from the use of coal, oil, and gas for energy. We use this energy to power electrical devices, for lighting, heating, and cooling, and for transport. Rapid decarbonization of the power sector is key for the transition to net zero, which requires low-carbon energy sources such as renewables, nuclear power, and sustainable biomass, and the deployment of carbon capture and storage systems. These will reduce direct emissions from power generation, and enable other activity currently using fossil fuels to be electrified. Decarbonization of transport is crucial, as it is one of the most energy-intensive sectors and represents a third of total final energy consumption. This can be achieved by switching to electric vehicles or alternative fuels such as biofuels, synthetic fuels, or hydrogen, and by cycling, walking, and using more public transportation. Equally important is heat for homes and industry, which accounts for 50% of global energy consumption. While cost, limitations on maximum temperature output, and limited incentives are currently roadblocks for scaling up zero-carbon heating technologies, advances in heat management and energy efficiency solutions are making carbon reductions increasingly possible.
Renewable electricity sources such as wind and solar power have recorded dramatic declines in cost over the past half century, and have become increasingly affordable in many places. In addition, innovation related to energy storage has significantly improved our collective capacity to manage the intermittency of renewables – resulting in cheaper and more efficient energy systems. A study published by experts at the University of Oxford has shown that a clean energy system will be trillions-of-dollars cheaper to run than the current, fossil-fuel based system. The more renewables are deployed, the greater the fall in related costs – and the more clean electricity becomes available for a wide range of end uses. In Kolkata, India, for example, the tram network is being revived as a way to reduce the carbon emissions generated by private vehicles, and to generally improve air quality. The electric trams in that city offer air conditioning for comfort, and for added appeal a tram library has been launched that offers free Wi-Fi, books, art, and other educational materials. This moving library is a means to draw students back onto public transport, and enable them to spend their travel time productively.
CO2 capture utilization and storage
Legacy carbon dioxide emissions must be removed as a new, net-zero-carbon economy is being built. CO2 capture, utilization, and storage have the potential to both contribute to gigatonne-scale removal, and serve as a source of fossil-free carbon products. By 2050, CO2 storage and utilization could each amount to as much as 27 gigatonnes annually, and generate as much as $4.4 trillion. Currently, however, the world’s largest direct-air carbon dioxide capture facility, ClimeWorks’ Orca plant in Iceland, has a capture and storage capacity of just 4,000 tonnes per year. The urgent need to build a new and complex carbon capture and storage industry at scale means greater investment is required – as is strategic, global action.
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