Companies interested in bringing their CO2 emissions towards Net Zero should consider the new report from the Science-Based Targets Initiative (SBTi), which will probably be published in November this year, just in time for COP26. The new paper lays out the conceptual foundations for credible, science-based net-zero targets for the corporate sector.
Science Based Targets (SBTI ‘s) vs. Net Zero: What‘s the difference?
Science Based Targets are reduction targets for greenhouse gas emissions. They are calculated on a scientific basis to ensure that global warming compared to the pre-industrial era is limited to 1.5 ° C. This means that companies can align their emission reductions with a specific target in order to be able to counteract climate change more effectively. SBTs are medium-term climate targets. The target corridor between the base year and the year of target achievement must be at least 5 years and a maximum of 15 years.
Because of the raising importance of keeping global warming to 1.5°C, companies are increasingly adopting net-zero climate targets. The IPCC defines net-zero as that point when “anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period”. When it comes to the commitment to net-zero emissions, companies take a long-term perspective.
What is the new Net-Zero Standard about?
Due to the growing interest in net-zero targets there is a need for a common understanding of “net-zero,” as existing targets vary widely in definitions and mitigation strategies used. Missing a common science-based definition of what constitutes a “net-zero” target, it is difficult for companies and their stakeholders to make sure that their long-term climate targets are credible or ambitious enough.
To address this need, the SBTi is undertaking an inclusive, stakeholder-informed process to develop the Net-Zero Standard, which will enable companies to set robust and credible net zero targets in line with a 1.5°C future.
It will be interesting to read whether the new report will address how the neutralization should take place. Should it be implemented through forest protection, forestation, technological processes or CO2 binding from the atmosphere? Another question that may be discussed is whether companies must use the neutralization technology themselves or whether this can also take place via certificate trading?
For more information on the Science Based Targets and Net Zero take a look at the DFGE solution. If you have further questions, please contact us via or by phone at +49 8192-99733-20.
Sources
https://sciencebasedtargets.org/net-zero
„https://www.energylivenews.com/2019/12/02/science-based-vs-net-zero-targets-for-businesses/“
„https://sciencebasedtargets.org/resources/files/SBTis-Net-Zero-Standard-Corporate-Manual.pdf“
