Accelerating towards Net Zero: Understanding the Purpose and Market Need
The pursuit of achieving net zero emissions has become an urgent and critical goal for governments, businesses and organizations around the world. As we grapple with the impacts of climate change, transitioning to a carbon-neutral society has become paramount. To maintain the Paris Agreement’s 1.5 degrees Celsius threshold, the world must reduce its emissions by at least 45% from 2005 levels by 2030 and must reach net zero by 2050. To achieve this, UN Secretary-General António Guterres has called on the leaders of developed countries to reach net zero “as close as possible to 2040” and asks emerging economies to aim for 2050.
A growing number of governments, communities, cities, businesses and other organizations are answering this call. Over 70 nations, including those responsible for most of the planet’s emissions like China, the United States and the European Union, have established a goal of achieving net-zero emissions by 2030 in alignment with the UN SDGs. Combined, this would encompass approximately 76% of all global emissions. Additionally, over 3,000 businesses and financial institutions are collaborating with the Science-Based Targets Initiative to reduce their emissions based on scientific climate guidelines. Moreover, more than 1,000 cities, 1,000 educational institutions, and 400 financial institutions have joined the Race to Zero campaign, committing to taking immediate and stringent measures to cut global emissions by 50% before 2030.
The Challenge
The growing number of net zero commitments is inspiring to see, but what we need now more than ever is action and measurable results. For instance, the Corporate Climate Monitor 2023, which was published earlier this year, found that most global companies that have made climate pledges have made little actual progress towards achieving their goals, despite marketing themselves as climate leaders.
The transition to a zero emissions world will require widespread societal transformation that will impact every industry and economy. Addressing the challenges associated with the transition to net zero involves technological hurdles, economic considerations, policy implementation, infrastructure development, public awareness, finance and investment-related obstacles. It necessitates a radical overhaul in our methods of production, consumption and transportation. And while governments may be setting the targets, the work on the ground and practical efforts to meet those targets will need to be undertaken by businesses.
To achieve the transition to net zero, we also need to prioritize the highest emitting sectors that have significant barriers. By focusing on these sectors, we can scale up our emissions reduction efforts rapidly.
For businesses in these sectors looking to put in place comprehensive net zero strategies, it’s important to complete an inventory and understand their total emissions – their Scope 1, 2, and 3 emissions:
Scope 1: Direct company owned or controlled emissions occurring at source.
Scope 2: Emissions associated with the production of energy consumed by an organization.
Scope 3: Indirect emissions associated with company activities not owned or controlled by an organization.
Emission calculations can present companies with various challenges – primarily due to the complexity and interconnectedness of emissions sources, measurement methodologies, and data availability. Understanding the scope and boundaries, determining the appropriate level of detail for reporting emissions and deciding how to attribute emissions from shared activities can introduce further complexities and potential discrepancies in emission calculations.
One of the most effective ways that businesses can begin this process and ensure success is by starting with assessing and accurately tracking the emissions generated by their buildings, as buildings constitute a large percentage of many organizations’ emissions.
Balancing Urgency and Realism
While the pursuit of net zero is imperative, we must also acknowledge the realistic time frame required for the transition. Transitioning to a carbon-neutral society cannot occur overnight but demands long-term planning, substantial investments and behavioural changes. Setting realistic targets and milestones is essential to guide our progress, and celebrating incremental successes along the way can sustain momentum and inspire further action.
Achieving net zero emissions is an enormous undertaking that necessitates a multifaceted and diversified approach, and relying solely on one technology or sector will be insufficient. We must harness the power of renewable energy while simultaneously addressing emissions in other sectors. Collaboration, knowledge sharing and equity must be at the forefront of our efforts. By recognizing the complexity of the challenge and adopting a comprehensive approach, we can pave the way for a sustainable and prosperous future for generations to come. The journey towards net zero requires a resilient and balanced approach, distributing efforts across multiple strategies to effectively combat climate change.
Market Need
The need of the hour are tools that simplify the process of calculating businesses scope 1, 2 and 3 emissions and make it much easier and more straightforward for them. And then connecting businesses with the right resources to help them move from assessing to implementation of net zero strategies and best practices. Collaboration and integration among stakeholders are necessary, along with educational guidance to support businesses in their net zero efforts. Setting goals and tracking targets with visualizing progress, will help drive the transition forward.
Global Network for Zero’s Offering
At the Global Network for Zero, we provide solutions to eliminate market barriers and accelerate the shift to zero emissions. We understand the challenges associated and have defined our strategy to drive the necessary progress for decarbonization. We are just a few weeks away from the launch of our platform which provides businesses with end-to-end support in accelerating progress toward hitting their net-zero targets. Specifically, the soon to be launched platform allows network members to assess their direct and indirect emissions, helps them identify strategies and partnerships for reaching their goals, independently verifies and certifies their net zero achievements.
And the platform’s first offering that we’ll be releasing is a net zero certification program for existing buildings. Some key things that make our approach unique are:
Allows all buildings to create a roadmap to get to net zero.
An incremental approach to certification that eliminates barriers existing buildings have traditionally faced.
Implementation support throughout the process so projects are successful.
Ability to calculate Scope 1, 2 and 3 emissions simply.
Flexibility to choose preferred standard, method or framework.
Access to a simple but robust platform to track your progress.
Low-cost certification with reduced documentation requirements.
Recognition throughout the process for reaching milestones on the path to zero.
Find out how you can get involved and join our network today. And please stay tuned for the upcoming events!