What is Net-Zero?
Most of you have heard about net-zero and it’s importance in mitigating climate change, but what exactly is Net-Zero? Net-Zero is about balancing the amount of greenhouse gases released and removed from the atmosphere. The Paris Agreement stresses the urgency for Net-Zero, requiring states to “achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century”. As global average temperatures have increased by 1.2oC compared to the pre-industrial era, if recent trends continue without mitigation, global temperatures are predicted to increase 3-5oC by 2100. It is now clear that an aggressive cut in emissions is not enough to cap global warming to 1.5oC by 2050, scaling up removals is also necessary in achieving net-zero.
So how will Net-Zero help in mitigating and tackling climate change?
According to The U.N. Climate Science Panel, man-made CO2 emissions need to decrease by 45% by 2030 from 2010 levels, and reach net-zero by 2050 to limit global warming to 1.5oC thereby avoiding the worst impacts of climate change. Climate change refers to long-term shifts in global average temperatures causing changes in weather patterns. Since the 1800s, human activities such as burning of fossil fuels (coal, oil and gas) have been proven to be the main facilitator of climate change. The burning of fossil fuels, deforestation, agriculture and other activities causes the release of greenhouse gas emissions (such as CO2 and methane) into the atmosphere that behave like a blanket draped around the earth, thereby trapping the sun’s heat and raising temperatures. Net-Zero is required to curb these emissions through strategies such as decarbonization, carbon sequestration, afforestation, and replacing fossil fuels with renewable energy.
Climate change is here: and is heading for a catastrophe without aggressive intervention
Climate Change does not only mean warmer temperatures, as the earth’s ecosystem is connected, a change in one area can impact changes in other areas. The consequences of rising temperatures have created a domino effect of intense drought, desertification, water scarcity, scorching wildfires, rising sea-levels, flooding and loss of biodiversity. Geographical regions will be impacted in different ways, and weather systems will become more frequent and severe. Diseases are expected to spread more such as malaria, as tropical zones expand with a warming planet. Under business-as-usual scenario, UN scientists predict that five billion people across the world will not have access to adequate fresh water by the year 2050. The World Bank’s Groundswell Report warns that by 2050, climate change can displace up to 216 million people across the world.
Milestones for achieving net-zero
So, what is the best way to reach Net-Zero by 2050? The International Energy Agency (IEA) has mapped out a detailed pathway for limiting global warming to 1.5oC. in order to meet this target, developed economies such as the EU, US and UK will be required to support in transforming the global economy over the next three decades. Under the scenario of the IEA, total global energy consumption from fossil fuels will be replaced by renewables by 50% by 2050. Electricity grid flexibility will be necessary to accommodate renewable energy, supported by smarter and digitalized electricity networks. Further development of technologies is required such as hydrogen, direct air capture, storage and batteries. Increase in electric vehicle sales will increase from 5% to 60% by 2030, and decarbonizing the transportation industry is prioritized which is a heavy emitter of carbon dioxide.
What can corporate businesses do to achieve Net-Zero targets?
According to the SBTi Science Based Targets Initiative, the three main approaches to corporate Net-Zero is as following:
1. Eliminating sources of emissions (scope 1, 2 and 3 emissions) within the value chain company
2. Removing carbon dioxide from the atmosphere
3. Compensating for value chain emissions by helping to reduce emissions outside the value chain (e.g. through financing renewable energy projects)
Reducing emissions from scope 1 can be achieved through cutting electricity consumption and being more energy efficient, replacing fossil fuels with cleaner alternatives, and/or purchasing carbon credits. Emissions from scope 2 can be offset through purchase of unbundled renewable energy certificates such as IRECs.
Is Net-Zero achievable?
The transition will require a total annual energy investment of USD 5 trillion by 2030 based on the IEA’s joint analysis with the International Monetary Fund. The scale of the task is daunting, cutting emissions by 45% from 2010 levels, and reaching net-zero by 2050 is by no means an easy feat. Doing so will require a swift transition in energy, land, urban, industrial systems and infrastructure (transport and buildings). Shifts in behaviour, international co-operation and massive policy interventions is required to ease social and political barriers. Developing countries would need subsidies from developed countries as they lack the long-term finance and incentives to adopt these targets. Unless immediate action is taken, an existential catastrophe that is man-made will only worsen.
