4 April 2022 (London): Responding to the release of the Intergovernmental Panel on Climate Change (IPCC) report, Mitigation of Climate Change, CDP's Global Director - Climate Change, Amir Sokolowski said: "The IPCC has shown time and again that climate change is human-induced, widespread, rapid and intensifying. The three reports comprising AR6 paint a singular, full and thorough picture: the science, the pathways, and the need for adaptation and mitigation in a prosperous world. It is inexcusable that the window for meaningful action continues to rapidly close when we – governments, regulators, corporates and capital markets – know well what needs to be done. Solutions exist, technologies are available, and capital is ready to be allocated, yet the pace of tangible action continues to lag behind.
That the IPCC has chosen to focus more on Co2 removal is a sign of urgency. That they turn their attention to behaviour change is a pathway of hope: it indicates that technology and science are ready, and that change is in the hands of every actor, beyond only national governments.
Governments cannot wait for more scientific reports or “red alerts”: a focus on immediate emission reductions is now more than critical. Governments were given an unprecedented opportunity as a result of COP26 to update their Nationally Determined Contributions on an annual basis. They must capitalize on this and update their NDCs in line with 1.5°C by the end of 2022, with robust roadmaps and policies to support their delivery. Long-term strategies and sectoral plans must be implemented through an evidence-based approach, providing non-state actors with the capacity to drive action and energise the ambition loop dynamic.
There is an absolute necessity to move away from support for and financing of fossil fuels. This is not new. In 2021 the IEA advised that there can be no new investments in oil, gas and coal if we are to have any chance of meeting our global goals. At minimum, the G20 must now honour its commitments to end coal financing and make good on Parties' agreement at COP26 to phase down unabated coal and end inefficient fossil fuel subsidies. These will be critical steps, alongside those to be required by the latest science from the IPCC and the IEA, if we are to have any chance of achieving our global climate goals and preventing further escalation of the crises we face. There is no space for backtracking. CDP supports not only this minimum, but any enhancement of it.
Indeed, real and immediate action from corporates through environmental disclosure, science-based targets and transition plans will be essential if we are to have any chance of avoiding catastrophic and irreversible climate impacts. The reality remains that companies need to halve emissions by 2030 if we are to have any chance of limiting global warming to 1.5°C. All climate science is agreed on this point. Whilst we have seen an explosion of net-zero commitments, with almost 90% of global GDP covered by such commitments, it’s critical that these commitments are backed up by science-based targets and credible transition plans. Only one third of companies disclosing to CDP report having developed a low carbon transition plan and fewer than 35% of companies’ emission reductions targets are credible. This lack of transparency and accountability is not good enough. We will fail to achieve a 1.5°C, resilient future if all actors fail to step up.
It is positive to see the renewed focus on innovations in forestry and land use and their implications for mitigation and adaptation efforts. Committing to and delivering on policies to reverse nature loss and degradation has the potential to turn forests and other land uses into a net carbon sink globally by 2030. There are huge economic benefits: investing in nature has been estimated to prevent US$3.7 trillion of damage from climate change, to lift a billion people out of poverty; create 80 million jobs and add an additional $2.3 trillion of growth to the global economy. Similarly, water security will be key to the net-zero transition - together, global water use, storage and distribution, and the lack of wastewater treatment, contribute 10% of global GHG emissions. Investing in water security comes with estimated business opportunities of US$711 billion.
Still, it’s critical that nature isn’t seen solely as a ‘solution’ to the climate crisis, but as an interconnected issue that must be tackled coherently and one which needs its own explicit focus, and financing, by the international community. Climate action must be approached through an intersectional lens and give prominence to local and regional conditions. Therefore, international climate policy must be aligned with the Convention on Biological Diversity by establishing ambitious and mutually beneficial targets, including to halt and reverse nature loss by 2030 to achieve an equitable, net-zero and nature positive world.
ENDS
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Éilis O’Connell, CDP | [email protected]
About CDP
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 680 investors with over $130 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 14,000 organizations around the world disclosed data through CDP in 2021, including more than 13,000 companies worth over 64% of global market capitalization, and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.