On the 4th of April, the IPCC Working Group III (WGIII) published its latest and last report of their series on Mitigation of Climate Change. In this third and final blog related to the IPCC Working Group report, we focus on the outlined solutions to the climate crisis and the impacts of their implementation, and how we can act today.
According to the latest WG III report, a climate disaster is unavoidable, unless strong and decisive action is taken immediately on a global and far-reaching scale. But above all else, another and more positive message becomes clearer than ever before: the society of today already has all the technology, the capacity, and the expertise to prevent a climate disaster. What immediate action can we take to tackle the impacts of the climate crisis?
The world still has a carbon budget of around 500 Gt CO2. This budget is meant to limit global warming to 1.5C with a probability of 50%, according to the WGIII. Meaning, 500 Gt CO2 is the amount of carbon that can be emitted to have a “coin-toss” chance of staying within the crucial 1.5oC global warming target set out in the Paris Agreement. For comparison, between 2010 and 2019, human-induced emissions equalled roughly 400 Gt of CO2. Drastic emission reduction and eventual decrease in total carbon in the atmosphere are crucial. To reach this 1.5oC goal, the world must peak its emissions in 2025, half emissions in 2030, and be net-zero by 2050 at the latest.
The good news is that the technology and possible solutions to stay within the outlined boundaries are already available & feasible. Solar, wind, hydro and geothermal energy is available, cost-effective, and sustainable in ways that can be used to replace most fossil-fuel energy sources. All that needs to be done, is to implement them as fast and as broadly as possible. In the following paragraphs, we will touch upon the core IPCC findings in more detail, outlining crucial areas of focus.
In 2022, fossil fuels still receive more funding than renewable energy sources, while simultaneously emitting almost two thirds (64% in 2019) of total CO2 into the atmosphere each year. According to IPCC, there are already great risks for anyone continuing their investments in fossil fuels, both from environmental and financial perspectives. The risk of stranded assets in the form of 1 to 4 trillion dollars is projected between 2015 and 2050 if action is taken to limit global warming to 2 oC. Moreover, even higher losses are expected if 1.5oC global warming is to be upheld. Fossil fuels are no longer an obvious and sound investment opportunity. A clear solution first and foremost, is choosing sustainable investments underlining ESG values, ensuring equitable & sound investment for years to come.
Luckily, renewable energy sources have become much cheaper. The costs of solar energy and lithium-ion batteries decreased by 85% and wind energy by 55% between 2010 and 2019. Over the same period, employment in the solar energy sector has grown by a factor of ten and in electric mobility by a factor of hundred. The number of companies focusing on various forms of sustainable energy generation, energy efficiency and digital products that result in lower CO2 emissions has drastically increased. All of this is actively contributing to the reduction of the total GHG emissions worldwide and is crucial for a continuous reduction of emissions in the short and long term.
For the first time, IPCC also looks at the way we produce and consume food and other consumer products. Around 22% of total global emissions come from our current farming practices and the deforestation related to it. A shift to a sustainable, healthier diet plays a major role in quickly reducing methane and nitrogen emissions all across the board. In addition, such diets also contribute to our well-being. A crucial tool for furthering reductions in the agricultural sector, according to IPCC, is advancing a ‘green choice architecture’. It can be used to help consumers to adopt low GHG, balanced, sustainable lifestyles, ranging from diet adjustments to energy & material use, and transportation choices.
According to IPCC, even an active and successful reduction of GHG emissions might not be sufficient to reach the outlined goal of maximum 1.5oC global warming. As one of the new recommendations by the working group, the development of not only renewable energy sources but also carbon capture and storage (CCS) technologies, is necessary for the industry to stay within outlined boundaries. CCS, while still controversial in its uses and effectiveness at the current stage, allows the industry to use fossil fuels in a limited capacity. Carbon capture also enables the limited removal of excess carbon from the atmosphere in the future (in case emissions overshoot the carbon budget).
Another crucial point of focus in the coming years, as mentioned in the third report, the built environment must be pushed towards self-generation and efficient use of energy, sustainable construction materials, and other adaptation measures. The greatest opportunities to reduce emissions are in the Western countries, especially in the renovation of existing buildings, which will not only reduce energy demands but also the need for “fresh” building materials. A combination of measures (renovation, sustainable infrastructure, own energy generation – a few of the examples given in the report) implemented within the built environment is key for continuous emission reduction related to the built environment.
The third IPCC report makes it clear that achieving the ambitious goal of limiting global warming to 1.5oC requires a multi-sectorial, multidisciplinary, legislatively backed, socially and industry-aligned push. This is the only way to prevent catastrophic consequences in the coming decades. As Steve Trent, founder of Environmental Justice Foundation said: “Decisive action on climate is not a ‘cost’; it is an investment, not just in our future, but in our survival. It would be the greatest cost-saving of human history.” Investing in mitigation solutions now will save a lot of costs in the future. The time to invest in favor of the planet we call home is now.
Consultant, Sustainalize
Consultant, Sustainalize
This year, companies had to report on the EU Taxonomy for the first time, covering two of the mandatory environmental objectives climate change mitigation and adaptation. Sustainalize has analyzed the disclosures of approximately 35 AEX/AMX companies, investigating the responsivity of this new legislation.
The European Commission adopted the so-called ‘Fit for 55’ package. The goal of this package is straightforward: making the EU’s climate, energy, land use, transport, and taxation policies fit for reducing net GHG emissions. Zena and Lot explain the package in a nutshell.
In our latest blog, written by our communication expert Vivian, we share our insights on green claims, the impact of upcoming regulations, and why it’s so important to communicate transparently about your sustainability journey.
The Platform on Sustainable Finance published the final report on Social Taxonomy. The Social Taxonomy will aid investors to make informed and consistent decisions and helps to direct resources toward socially responsible activities and companies.
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