Net Zero to Negative Emission Targets
Net zero to negative emission targets need to be achieved to reduce impacts from food production.
Mitigation actions to reduce climate impacts from agriculture focus on minimizing nitrous oxide, methane, and carbon dioxide emissions.
Topics:
- Paris Agreement
- What is Net Zero?
- Science-based Targets
- Key Measurements, Baselines, and Tracking Steps for Achieving Net Zero
- IEA’s ‘Net Zero by 2050 – A Roadmap for the Global Energy Sector’
- Canada and Net Zero Initiatives
- Canada – Publication of Proposed Greenhouse Gas Offset Credit System Regulations
- The Paris Aligned Investment Initiative (PAII)
- Net Zero and Net Zero Asset Managers (NZAM)
- Glasgow Financial Alliance for Net Zero (GFANZ)
- Climate Ambition Alliance and the Paris Agreement
- UN Race to Zero
- Definitions
- Carbon Neutral vs Net Zero
Paris Agreement
The Paris Agreement is a legally binding international treaty on climate change. Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels. To achieve this goal, countries must aim to reach global peaking of greenhouse gas emissions as soon as possible to achieve a climate neutral world by mid-century.
The Paris Agreement was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016. It requests each country to outline and communicate their post-2020 climate actions, known as their Nationally determined contributions (NDCs). Each Party needs to prepare, communicate, and maintain successive nationally determined contributions (NDCs) that it intends to achieve and in turn meet the Paris Agreement.
The United Nations Framework Convention on Climate Change (UNFCCC) seeks to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic human-induced interference with the earth’s climate system.
The United Nations Climate Change Conference of the Parties (COP) serve as the formal meeting of the UNFCCC. COP 21 was held in 2015, when the Paris Agreement was adopted. COP26, is the 26th United Nations Climate Change conference. COP 26 is scheduled to be held in the city of Glasgow from November 1-12, 2021 under the presidency of the United Kingdom.
The Intergovernmental Panel on Climate Change (IPCC) is the United Nations body for assessing the science related to climate change.
What is Net Zero?
Net Zero refers to the goal of eliminating greenhouse gas emissions by a specific date, sometime prior to 2050. requiring Net Zero is becoming a near universal goal for Investment firms, financiers, countries, states, provinces, cities, corporations, supply chains, and various industry associations.
Net zero can be achieved, first by eliminating greenhouse gas emissions, and second by offsetting any remaining emissions. Emissions can be offset by planting trees, investing in renewable energy projects that replace fossil-fuel energy, or investing in carbon-removal technologies including carbon sequestration and storage and direct air capture.
Science-based Targets
Science-based Targets (SBT) provide companies with a clear pathway to a sustainable future by specifying how much and how quickly they need to reduce their greenhouse gas emissions (GHG). Emission reductions are considered ‘science-based’ if they are in line with the latest science to meet international goals, i.e., the Paris Agreement and efforts to limit warming to 1.5°C. The Science Based Targets Initiative (SBTI) certifies plans. Both the CDP and SBTI publish the names of the organizations with initiatives.
Key Measurements, Baselines, and Tracking Steps for Achieving Net Zero
A first step is for companies to measure their emissions and disclose the results. For example, companies can answer annual surveys from CDP (formerly the Carbon Disclosure Project).
A second critical step is to implement an emissions-reductions plan to limit warming by preferably 1.5 degrees Celsius or lower.
Third, companies can calculate an emissions baseline, and share data with their supply chain.
And finally, organizations need to annually track, manage, pivot with needed actions, and monitor ongoing progress to Net Zero.
IEA's 'Net Zero by 2050 - A Roadmap for the Global Energy Sector'
‘Net Zero by 2050 – A Roadmap for the Global Energy Sector’
By the International Energy Agency (IEA)
May 18, 2021
Based on the May 18th, 2021 report overview released by the IEA, following are examples of key Actions, Benefits, and Challenges
Example Actions:
- From the date of the report no investment in new fossil fuel supply projects
- From the date of the report no further final investment decisions for new unabated coal plants
- By 2035, there are no sales of new internal combustion engine passenger cars
- By 2040, the global electricity sector has already reached net-zero emissions
- Immediate and massive deployment of all available clean and efficient energy technologies
- Annual global additions of solar PV to reach 630 gigawatts by 2030
- Annual global additions of wind power to reach 390 gigawatts by 2030
- Global electric vehicles (EVs) sales go from around 5% today to more than 60% by 2030
- Use of existing proven technologies and policies will drive most of the CO2 emission reductions by 2030
- Remainder of reductions will come from technologies that are in prototype or demonstration phases today. These will require government funding and a major global push to accelerate innovation
- The biggest opportunities include advanced batteries, hydrogen electrolysers, and direct air capture and storage / carbon capture, utilization, and storage (CCUS)
- Fossil fuel subsidy phase‐outs, carbon pricing, market reforms can ensure appropriate price signals
- Policies should limit or provide disincentives for the use of certain fuels and technologies, such as unabated coal‐fired power stations, gas boilers and conventional internal combustion engine vehicles
- Governments must lead the planning and incentivising of the massive infrastructure investment, including in smart transmission and demand responsive digital electricity grids / networks
- The resulting wave of investment and spending to support the economic recovery from Covid-19 needs to be aligned with the net zero pathway.
Example Benefits:
- Major health benefits through reductions in indoor air pollution, cutting the number of premature global deaths by 2.5 million a year
- Major global creation of millions of jobs in clean energy, including energy efficiency, as well as in the engineering, manufacturing, and construction industries
- Major economic benefits with a 4% increase in global GDP in 2030 compared to current trends
- Achieving universal energy access by 2030 will provide a boost to developing countries.
Example Challenges:
- An unprecedented transformation of how energy is produced, transported, and used globally
- Energy transformation requires substantial supplies of critical minerals and various rare earth metals
- The contraction of oil and natural gas production will have far-reaching implications for all the countries that collect associated taxes and companies that produce these fuels. The need for no new oil and natural gas fields in the net zero pathway will result in the lower supplies becoming increasingly concentrated in a small number of low-cost producers. The share of low-cost producers – i.e., OPEC – will increase as the share of high-cost producers decrease. Structural reforms and new sources of revenue are needed.
- Growing energy security challenges resulting from the increasing importance of electricity, the variability of supply from some renewables, and cybersecurity risk
- Requirement of sustained support and participation from citizens, who will be impacted in varying ways
- Consideration of uncertainties, such as the roles of bioenergy, carbon capture, and behavioural changes in reaching net zero
- Recognition that the narrow goal – along with the actions needed – of achieving net-zero emissions by 2050 is still achievable, but the transition needs to be underway now.
Canada and Net Zero Initiatives
The Canadian Net-Zero Emissions Accountability Act in November 2020 establishes a legally-binding process to achieve emission reduction goals, requiring that Canada set emissions reduction targets for milestones at 5-year intervals.
In February 2021, the Net-Zero Advisory Body was established, providing an independent group of experts with the mandate to provide advice on pathways to achieve net-zero emissions by 2050.
In April 2021, Canada announced that the country pledges to reduce its emissions by 40 to 45 per cent below 2005 levels by 2030.
In May 2021, Canada launched the Sustainable Finance Action Council. The council brings together public and private sector financial expertise to support the growth of a strong, sustainable finance market.
Canada has committed to reaching net-zero emissions by 2050.
Canada - Publication of Proposed Greenhouse Gas Offset Credit System Regulations
In March, 2021, Canada published in the Canada Gazette, Part I (CGI) proposed Greenhouse Gas Offset Credit System Regulations (Canada).
The Federal GHG Offset System builds on the recommendations in Canada’s Climate Plan: A Healthy Environment and a Healthy Economy.
And the Federal GHG Offset System builds on the recommendations in the Pan-Canadian Greenhouse Gas Offsets Framework.
The Paris Aligned Investment Initiative (PAII)
The Paris Aligned Investment Initiative (PAII) was established in 2019 by the Institutional Investors Group on Climate Change (IIGCC).
This global collaboration is supported by four regional investor networks: AIGCC (Asia), Ceres (North America), IIGCC (Europe) and IGCC (Australasia).
Several investors representing trillions in assets have engaged in the development of the Net Zero Investment Framework through the Paris Aligned Investment Initiative.
Net Zero and Net Zero Asset Managers (NZAM)
A notable portion of the world’s 2,000 biggest listed companies have now made Net Zero commitments.
And major asset managers are supporting the Net Zero Asset Managers (NZAM) initiative – they are pledging to make their portfolios Net Zero by 2050 or earlier.
Glasgow Financial Alliance for Net Zero (GFANZ)
The Global Alliance for Net Zero (GFANZ) brings together existing and new net zero finance initiatives into one sector-wide strategic forum.
The alliance of firms with trillion in assets aims to accelerate the transition to net zero emissions by 2050.
Climate Ambition Alliance and the Paris Agreement
As part of the United Nations Framework Convention on Climate Change (UNFCCC), the Climate Ambition Alliance commits nations to be more ambitious in their Nationally Determined Contributions (NDCs) as established in the Paris Agreement.
UN Race to Zero
The United Nations Framework Convention on Climate Change’s (UNFCCC) Race To Zero efforts help to mobilize organizations outside of national governments to join the Climate Ambition Alliance.
Summary of Actions to Reduce Climate Impacts
Following is a review of key action areas to reduce greenhouse gas emissions:
First: Reduce greenhouse gas emissions to near zero in the very near future! Implement low carbon solutions that support Environmental, Social & Governance (ESG) requirements.
Second: Replace fossil fuel energy sources with clean energy sources. Reduce GHG emissions from soils and from livestock operations. Use precision agriculture techniques to maximize efficiency of nutrient application and pest control…
Third: Sequester carbon in soils.
Fourth: Use of Negative Emission Technologies such as Carbon Capture & Storage (CCS) can help, however today these technologies represent a small component of required actions. Further reducing GHG emissions, deploying more renewable energy systems, and advancing soil carbon sequestration as part of regenerative agricultural initiatives need to be prioritized.
Fifth: Adopt circular economy principles when implementing newer sustainable technologies including digital technologies – noting potential increase in demand for minerals and metals.
Sixth: Nature-based solutions (NbS) can potentially provide cost-effective global carbon dioxide mitigation and limit global warming to help meet targets. These solution can lower biodiversity loss. A value needs to be put on our natural ecosystem
In summary, successful climate mitigation actions need to work hand in hand with achieving sustainable development including equity goals.
Carbon Neutral vs Net Zero
Carbon Neutral may be distinguished somewhat from Net Zero. A goal of Net Zero is to eliminate greenhouse gas emissions, whereas a company can become carbon neutral by simply only buying offsets.
So, with carbon neutral a company could buy offsets for a year’s worth of fossil-fuel based travel, and not reduce their annual emissions at all.
For both Carbon Neutral and Net Zero, critics advise that an overreliance on offsets, unproven technologies, and three-decade time horizons may enable companies to continue business as usual while still marketing a net-zero stance.
- Last Modified: May 17, 2024