Sustaira Summarizes: Net Zero Stocktate 2023
Since June 2019, the concept of achieving net zero emissions has gained significant traction across the globe. In 2021 following the UN Climate Summit in Glasgow (CO26) 90% of the global economy was on board with net zero plans. As the urgency to combat climate change grows, governments, subnational entities, and corporations are setting net zero targets to align with the goal of limiting global warming. As defined by the Net Zero Stocktate 2023 report there are three phases of net zero; accepting the principles of net zero, pledging to get there, and delivering on those pledges. Today we will provide a brief summary of the Net Zero Stocktake 2023 report, which analyzes the status and trends of net zero target setting.
Key Findings Directly from the Report:
Growth in the number of national and subnational net zero targets has slowed, but company net zero target-setting momentum continues at speed.
National government net zero targets underpinned by legislation or policy documents increased substantially in the two-and-half years, from less than 10% to 75%.
A significant share of subnational and corporate entities still lack any emission reduction target whatsoever, at the global level and within the G7.
Collectively, there are limited signs of improvement in the robustness of subnational and corporate net zero targets and strategies.
More entities are clarifying their intention to use carbon dioxide removals (CDR) in their value chain.
Despite having net zero pledges, no major producer countries or companies have committed to phasing out fossil fuels
The report highlights the evolution of the net zero concept, from a scientific principle to a global organizing principle. It emphasizes the importance of moving from mere target-setting to tangible actions to achieve net zero emissions. Ultimately, the delivery of these net zero goals is the most important part and we are in a race against time. Stopping climate change at safe levels means that within the next decade, we need to cut our total emissions in half and achieve net zero carbon dioxide (CO22) emissions within the next 25 years. Following that, we will need to get to net zero total greenhouse gas emissions (GHG). Today, while many entities have set long-term goals to achieve net zero, there is very little evidence to show that they are going to meet those goals based on current actions and planning, thus leading to more scrutiny now than ever before. The countdown is on.
The report after then highlights the UN Secretary-General's High-Level Expert Group on Net-Zero Emissions Commitments of Non-State Entities. This group set out to understand and outline the characteristics of "good net zero" for various entities. The analysis focuses on the credibility of net zero targets and examines indicators of their robustness, including the restriction on offset credits, setting interim targets, and commitment to annual reporting. The findings reveal both progress and areas of concern. This is the third report of its kind and the results are similar to what we saw in Taking Stock 2021 as well as Net Zero Stocktake 2022. What we see this year is that there has been an increase in intent as well as progress across country-level net zero targets accelerating up the governance curve; that is, from ‘pledged’ to ‘in policy document’ to ‘enshrined in law.
“The proportion of net zero targets set in domestic legislation or policy documents has substantially increased from 7% of total greenhouse gas coverage in December 2020 to 75% today. More than 70 countries now have net zero targets either enshrined in legislation or outlined as a goal in policy documents.”
Unfortunately, when looking at measures of integrity there has been very limited growth or improvement in national, subnational, and company net zero strategies. Essentially phase 3 of net zero is still lagging. Entities overall are not implementing measures of integrity as quickly as they may have been expected or hoped for. Currently, according to Race to Zero’s latest version of its “starting line” criteria as referenced in this report, fewer than 5% of net zero targets meet the “starting line” minimums.
This report continues to underscore the growing convergence of voluntary net zero standards, guidelines, and assessment frameworks, providing a foundation for guiding principles in net zero strategies. What we are seeing is an increase in policy, funding, and accountability when addressing net zero, which will hopefully lead to an increase in those measures of integrity and move toward the true delivery of these goals. As of right now, implementation and net zero integrity has been slow.
Directly from the report, we highlight the three conclusions offered by the Net Zero Stocktakes 2023 report:
Most global entities have still not set a net zero target consistent with what 195 nations signed up to eight years ago
Most entities that have pledged net zero do not meet minimum requirements for what 'good' net zero looks like, including backing up long-term vision with urgent near-term efforts to halve emissions
The clear consensus on net zero standards and what good looks like can serve as a guiding star for both commitments and implementation.
In summary, the Net Zero Stocktake 2023 report presents a comprehensive assessment of net zero target setting worldwide. It highlights the need for increased commitments and implementation to ensure that the global temperature goals outlined in the Paris Agreement are met. The world is in a race against time and only action will help us stay below that 1.5C warming goal. Unfortunately, while many entities have set net zero targets, most do not meet the minimum requirements for credible net zero, thus emphasizing the importance of urgent near-term efforts to reduce emissions.
As governments introduce laws and policies to support net zero objectives and more funding is dedicated to this topic, scrutiny of the integrity of targets will extend beyond voluntary initiatives. The report concludes that the consensus on net zero standards, creating a clear understanding of what good goals are and what good plans look like to reach those goals, can serve as a guiding star for both commitments and implementation.
In this phase next zero being focused on implementation, the challenge lies in accelerating net zero integrity to align with the ambitious goals of the Paris Agreement. More entities must commit to net zero, and those with existing pledges must take decisive actions to reduce emissions. Time will tell if we are successful.
Sources:
Read or download the full report here: https://zerotracker.net/analysis/net-zero-stocktake-2023
