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Sep 244 min read

What is Net Zero? (P2)



In part 1, we have grasped the basic concepts of Net Zero, let's learn about the next part of Net Zero!


But the commitment to net zero is not just limited to national governments; many regional and local governments, as well as businesses, have also pledged to achieve a net zero emissions economy, reflecting a broad-based recognition of the need for comprehensive climate action to tackle climate change.


However, most governments pay close attention to the cost of reaching net zero. For example, in its Sixth Carbon Budget, the UK’s Climate Change Committee estimated that the yearly cost of achieving net zero would be 0.6% of GDP.


It’s also important to note that for emissions other than carbon (e.g. methane), the net zero date is generally later – as it is recognized that these emissions are more difficult to phase out. Countries with high agricultural emissions generally find it more challenging to reach overall net zero.


What does a good net zero target look like?

A good net zero emissions target is specific, time-bound, and aligned with the latest climate science. Here are key elements that define a robust net zero target:

1. Ambitious yet realistic goals: Targets should aim for a significant reduction in emissions by a specific year, typically by 2050 or sooner, depending on the sector and starting point.

2. Comprehensive scope: A good target includes all relevant emissions scopes (Scope 1, 2, and 3) to ensure comprehensive coverage of a company’s entire value chain and the net greenhouse gas emissions produced.

3. Interim milestones: Setting interim targets for 2025, 2030, and 2040 can help maintain momentum and provide measurable progress checkpoints for cutting carbon emissions.

4. Reduction first approach: Prioritize direct emissions reductions over offsets, ensuring that carbon removal and offsetting are used only as a last resort.

5. Transparency and accountability: Publicly disclose targets, progress, and methodologies to maintain transparency and build stakeholder trust. Regularly update stakeholders on progress through sustainability reports.

6. Alignment with science-based targets: Ensure that targets are consistent with the levels required to meet the goals of the Paris Agreement, typically through frameworks like the Science-Based Targets initiative (SBTi).


A well-structured net zero emissions target not only demonstrates a company’s commitment to sustainability but also enhances its competitiveness and resilience in a rapidly changing market landscape, particularly as global efforts to tackle climate change intensify.


How can carbon accounting platforms support businesses with net zero targets?

Carbon accounting platforms are essential tools for businesses aiming to achieve net zero.


These platforms provide the necessary infrastructure to accurately measure, track, and report on the carbon emissions produced. Here’s how they can support businesses:

1. Accurate emission tracking: Carbon accounting platforms help businesses calculate their emissions across all three scopes. This includes direct emissions from owned or controlled sources, indirect emissions from the consumption of purchased electricity, heat, and steam, and all other indirect emissions that occur in a company’s value chain.

2. Data management: These platforms manage vast amounts of data, ensuring accurate and up-to-date information on emissions. This data is crucial for identifying key areas for reducing carbon emissions and for tracking progress over time.

3. Benchmarking and analysis: They allow businesses to benchmark their performance against industry standards or regulatory requirements, providing insights into how they can improve their sustainability practices.

4. Scenario analysis: Carbon accounting tools can model different scenarios based on various reduction strategies, helping businesses understand the potential impact of different actions on their overall carbon footprint – e.g. the switch from diesel cars to electric vehicles.

5. Regulatory compliance: As regulations around carbon reporting and reductions tighten, carbon accounting platforms ensure that businesses remain compliant with regional, national, and international regulations.

6. Integration with sustainability reporting: These platforms can integrate with broader sustainability reporting frameworks, such as the Global Reporting Initiative (GRI) or the Carbon Disclosure Project (CDP), providing a comprehensive view of a company’s environmental impact.


By leveraging carbon accounting platforms, businesses can not only ensure accurate reporting and compliance but also identify cost-saving opportunities and drive innovation in sustainability. As more companies commit to reaching net zero targets, the role of these platforms becomes increasingly vital in managing and reducing their environmental impact.


How can we reach net zero?

Understanding and implementing net zero emissions strategies is essential for businesses in the current era of climate awareness and regulatory change. By setting clear, science-based targets and utilizing tools like carbon accounting platforms, companies can not only reach net zero, but also enhance their competitiveness and reputation.


With global momentum building towards a more sustainable future, now is the time for businesses to act and lead the way in achieving net zero emissions, thereby helping to reduce global warming.




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