More of Everything, Everywhere, Now
London, 3rd September 2024
More of Everything, Everywhere, Now
Most of the UN’s International Panel on Climate Change (IPCC) scientists now believe we will surpass 2.5 degrees of global warming this century.
This comes as little surprise. Already, global emissions reached an all-time high last year and we overshot 1.5 degrees numerous times. On August 2nd, we reached Earth Overshoot day and there is clearly much work to be done.
The issue we face is that a ceiling exists over how much money governments can unlock to finance climate action. We need more finance from everywhere and now.
Corporate climate action is what will make or break 1.5. We need to be protecting and restoring carbon sinks. We need to fund effective adaptation to climate change. We need to remove historical emissions.
Our money must therefore work smarter and harder if we are to limit the global temperature rise at the speed necessary, so market-based solutions are essential to funding climate action.
This was recently illustrated by the US government’s guidelines encouraging the use of carbon credits to meet global climate goals.
Companies today need to reduce their own emissions, buy removals, buy further avoided emissions, in and outside their supply chains, and support local areas in adapting – all as part of a clear strategy on their path to Net Zero.
Corporate leaders with this ambition will find carbon credits help them to:
- Set more ambitious net zero targets, while meeting their recognised sustainability claims.
- Cost their negative externalities (which we need much more of across the global financial system!).
- Agree risk management techniques for shareholders’ benefit.
- Demonstrate to stakeholders that they are taking positive action today, on all fronts.
- And in some jurisdictions, even supplement their carbon tax.
Emissions and sustainability previously lived under the banner of ESG with the purchase of credits undertaken by procurement. Now, a credible and actionable Net Zero target is becoming a required activity rather than an optional strategy.
Pressure from consumers and supply chain partners in the business-to-business market is leading clients to ask for emission disclosures, Net Zero targets and sustainability policies as a requirement to contract.
With this pressure and growing economic incentives in private markets and through tax regimes, the purchase and use of credits today offers many advantages. These include the ability to secure supply at competitive prices and ensure decarbonisation and Net Zero are a clear budget item starting from now.
What’s more, research tells us that companies buying and retiring carbon credits are decarbonising nearly x2 faster than those who are not. Important ongoing work from the ICVCM and VCMI is helping them buy well, and set claims that stand up to scrutiny.
At Carbonplace, we welcome all incentives that encourage this yes, and approach to addressing climate change. Our role is to help companies access the market while giving users full transparency and control over their carbon portfolio.
With markets working efficiently and with integrity, it’s possible we can raise ambitions again and keep hold of 1.5.
Like former IPCC chief, Christiana Figueres said, 1.5 is our anchor. If we let go of 1.5, who knows where we will end up.
So, let’s do more of everything, everywhere, and now to secure it!
Media Contact
Daniel Wynne, Chief Operating Officer at Carbonplace