COUNTDOWN CARBON BRIEFING 101: TO COP26 - Gong Communications
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THERE ARE 4 MONTHS TO GO UNTIL COP26 — BUT WHAT IS IT? This event builds on the promises undertaken updated plan that would reflect their highest at COP21 (officially known as the ‘21st possible ambition at that time. The UK will host the Conference of the Parties’), which took place in Paris in 2015. As part of the resulting Paris 2020 marked the first of these five year cycles, 26th annual UN Climate Agreement, 196 countries agreed to work but was delayed due to the covid pandemic. Change Conference of together to limit global warming to below This means that countries are expected to update their 2030 targets before they meet in 2 degrees and aim for 1.5 degrees. They the Parties (known as committed to bringing forward national plans Glasgow this year. COP26) in Glasgow on setting out how much they would reduce their emissions – known as Nationally Determined 1 – 12 November 2021. Contributions, or ‘NDCs’. They agreed that every five years they would come back with an
COP26: STATISTICS 36 industrialised countries and the European Union, which were set binding emission reduction 200 targets in the first agreement established by the UNFCCC, known as the Kyoto Protocol. countries who are ‘party’ to the United Nations Framework Convention (UNFCCC) 68% and meet annually at the UN climate change conference. 1.5˚C the UK’s Nationally Determined Contribution (NDC) as stated on 12 December 2020. The the global temperature NDC commits the UK to rise goal figure cited in the reducing economy-wide Inter-governmental Panel greenhouse gas emissions on Climate Change (IPCC), by at least 68% by 2030, which presents Assessment compared to 1990 levels. Reports (AR) every five years and from which the UNFCCC takes scientific guidance.
A The global coalition for net zero emissions is growing, with increasing numbers of companies, financial institutions, cities and countries setting targets to reduce emissions to net zero by 2050. SNAPSHOT The Climate Ambition Alliance is the overarching organisation behind the UN-backed ‘Race to Zero’ campaign. It unites countries, businesses, investors, cities and regions who are working towards achieving net zero carbon emissions by 2050. Country engagement in this Alliance is led by the OF THE governments of Chile and the United Kingdom, with support from UN Climate Change and UNDP. Meanwhile, mobilization of non-government actors is led by the High-Level Climate Champions for WORLD’S Climate Action – Nigel Topping and Gonzalo Muñoz – again, under the ‘Race to Zero’ campaign. BIGGEST The Climate Ambition Alliance lists the following as the Race to Zero partners: HEROES BUSINESSES Business Ambition for 1.5 C, B Corporation, Business Declars, INVESTORS UN-convened Net-Zero Asset Owner Alliance, Net-Zero Asset Managers THAT HAVE The Climate Pledge, SME Climate Hub, Exponential Roadmap Initiative, Business Declares and Pledge to Net Zero Initiative, and the Paris Aligned Investment Initiative COMMITTED CHAMBERS OF COMMERCE REGIONS/STATES Under2Coalition TO NET International Chamber of Commerce Chambers Climate Coalition COUNTRY-WIDE CITIES ZERO Japan Climate Initiative Race Cities Race to Zero, including C40’s to Zero circle Deadline 2020, RED Argentina de Municipos Frente al Cambio Climatico, ICLEI’s Climate Neutrality Framework UNIVERSITIES Global Universities and Colleges for SECTORAL INITIATIVES the Climate, Second Nature Health Care Without Harm, Fashion Industry Charter for Climate Action, Water UK, and International Wineries for Climate Action
Many financial institutions 2016 are aligning themselves with the Race to Zero. 2 016 Here is an infographic overview of the evolution of the main financial net 19 8 9 PR 20 06 :2 01 2 :2 01 2 zero alliances over the : ST A ST ST T: E E E ES last five years, according Ceres Principles for Responsible Investment Global Sustainable Investment Alliance The Institutional Investors Group On Climate Change to our own research: (PRI) (GSIA) (IIGCC) 16 01 5 01 6 20 P :2 :2 SE ST ST : Building a global zero emissions economy is a T E E ES daunting task, but it is one that financial firms Partnership for Investor Group Asia Investor Group are increasingly embracing. Financial Net Zero Carbon Accounting On Climate Change On Climate Change Financials Alliances are on the rise, as they band together (PCAF) (IGCC) (AIGCC) to better address the challenge. Our timeline infographic, displayed over the following pages, navigates the web of Financial Net Zero Alliances, from the initial founders (as FINANCIAL NET ZERO ALLIANCES early as 1989-2016) to the intertwined group of organisations involved today. It gives a very real sense of the evolving scale of the 201 movement, and increasingly makes the ‘Race Building a global zero emissions economy is a daunting task, but it is one that financial to Zero’* look like an achievable goal. K E Y: 1000+ firms are increasingly embracing. Financial Net Zero Alliances are on the rise, as they Represents the number 500–1000 band together to better address the challenge. Our infographic below navigates the web of members/signatories/ of FinancialbehindNet Zero Alliances, from the initial founders (as early as 1989-2016) to the 19 100–500 20 investors/companies within *We haven’t included the overarching organisation the UN- SE P : each group, as of June 2021 coordinated Race to Zero campaign, theintertwined Climate Ambition Alliance, group of organisations involved today. It gives a very real sense of the 7 T 01 ES 2 50–100 in this infographic. Though clearly worthy of note with 3993 E C 06 evolving scale ofand the movement, and increasingly makes the 'Race to Zero'* look like an :D 20 T PR participants, their reach is far beyond pure financial institutions ES A 5–50 Net Zero Asset therefore outside of the immediate scopeachievable of this graphic.goal. T: ES Owner Alliance (AOA) Principles for Responsible Investment
Carbon Accounting On Climate Change On Climate Change Financials (IGCC) (AIGCC) (PCAF) 2019 2 019 19 20 P SE : 17 T ES 20 C E 06 T :D 20 ES PR A Net Zero Asset T: ES Owner Alliance What does it mean to be a Net Zero (AOA) Principles for Responsible company? 6 Investment (PRI) 9 01 98 :2 :1 ST ST E E In short, being a Net Zero company 01 5 :2 means meeting the goal of net zero ST SUPPORTED BY Investor Group E On Climate Change Ceres carbon emissions – or becoming carbon Partnership for (IGCC) neutral – by 2050, in order to limit the Carbon Accounting Financials Climate Action 100+ global temperature increase to 1.5 degrees (PCAF) 19 16 Celsius (in line with the Paris Agreement). 20 01 2 20 AY :2 P SE M ST : T: E While there is no standardised definition T ES ES or criteria for use, society is becoming 01 2 Paris Aligned The Institutional Investors Group Asia Investor Group :2 Investor Initiative On Climate Change increasingly wary of greenwashing. All of ST ESTABLISHED & On Climate Change (AIGCC) E SUPPORTED BY (IIGCC) the financial alliances for net zero listed in this infographic require their signatories to Global Sustainable Investment Alliance (GSIA) be transparent about their goals and to set science-based targets. SUPPORTED BY FINANCIAL NET ZERO ALLIANCES SUPPORTED BY 2020 Building a global zero emissions economy is a daunting task, but it is one that financial firms are increasingly embracing. Financial Net Zero Alliances are on the rise, as they K E Y: 1000+ Represents the number 500–1000 band together to better address the challenge. Our infographic below navigates the web of members/signatories/ of Financial Net Zero Alliances, from the initial founders (as early as 1989-2016) to the 20 19 investors/companies within 100–500 SE P each group, as of June 2021 intertwined group of organisations involved today. It gives a very real sense of the : 17 50–100 T ES 20 C evolving scale of the movement, and increasingly makes the 'Race to Zero'* look like an E 06 T :D 20 ES PR A Net Zero Asset 5–50 achievable goal. T: ES Owner Alliance (AOA) Principles for Responsible Investment 16 (PRI) 8 9 20 19
SUPPORTED BY 2020 2020 19 20 P SE : 17 T ES 20 C E 06 T :D 20 ES PR A Net Zero Asset T: ES Owner Alliance (AOA) How many financial companies have set Principles for Responsible net zero targets? 6 Investment (PRI) 9 01 98 :2 :1 ST ST E E The good news is that the number of :2 01 5 financial companies that have set new zero ST SUPPORTED BY Investor Group E On Climate Change Ceres targets is increasing almost too quickly to Partnership for (IGCC) assign a meaningful number. In September Carbon Accounting Financials Climate Action 100+ 2020, the United Nations Framework (PCAF) 20 19 2 16 20 Convention on Climate Change (UNFCCC) 01 AY :2 P SE M ST : T: E T reported that the number of net-zero ES ES commitments from local governments and :2 01 2 Paris Aligned Investor Initiative The Institutional Investors Group Asia Investor Group On Climate Change businesses had more or less doubled in E ST ESTABLISHED & SUPPORTED BY On Climate Change (IIGCC) (AIGCC) less than a year, mainly from members of Global Sustainable the UN Race to Zero campaign. Investment Alliance (GSIA) Our research into the financial alliances SUPPORTED BY for net zero indicates nearly a thousand SUPPORTED BY large financial institutions are now part L 20 20 JU of one or more alliance, with thousands T: ES more signatories to the UN’s Principles for Responsible Investment. FINANCIAL NET ZERO ALLIANCES Bankers For NetZero Building a global zero emissions economy is a daunting task, but it is one that financial EC 20 20 K E Y: 1000+ firms are increasingly embracing. Financial Net Zero Alliances are on the rise, as they D T: ES Represents the number 500–1000 band together to better address the challenge. Our infographic below navigates the web of members/signatories/ Net Zero Asset of Financial Net Zero Alliances,Managers fromInitiative the initial founders (as early as 1989-2016) to the investors/companies within 100–500 each group, as of June 2021 intertwined group of organisations involved today. It gives a very real sense of the 50–100 evolving scale of the movement, and increasingly makes the 'Race to Zero'* look like an 5–50 achievable goal.
T: 20 12 T: 20 15 2021 ES ES Partnership for Global Sustainable Carbon Accounting Investment Alliance Financials (GSIA) (PCAF) 17 20 C 21 DE 20 06 20 ST : V E PR O A N T: 20 ES 21 20 T: L 20 ES JU V T: O Principles for ES :N EST Responsible Net Zero Bankers For Investment Insurance Alliance NetZero 01 6 (PRI) 98 9 (NZIA) :2 :1 ST ST E E 20 19 SUPPORTED BY Investor Group Glasgow Financial SE P On Climate Change Ceres Alliance for Net Zero (IGCC) T: ES (GFANZ) Climate Action 100+ INVESTORS Net Zero Asset THROUGH Owner Alliance 20 2 0 (AOA) ES P T: 2 16 SE M 01 20 :2 SE P ST T: : AY ES E T ES 20 19 Net Zero Asset Paris Aligned Managers Initiative Investor Initiative The Institutional Asia Investor Group Investors Group On Climate Change ESTABLISHED & On Climate Change (AIGCC) Net Zero SUPPORTED BY (IIGCC) Banking Alliance (NZBA) ES T: P A R 20 21 SUPPORTED BY CO-LAUNCHED SUPPORTED BY 2 0 20 N 21 JA 20 FINANCIAL NET ZERO ALLIANCES B T: FE ES T: This infographic illustrates our ES findings from research into financial Financial Services Taskforce net zero alliances, but we are aware (FSTF) that this is an ever-growing universe. Sustainable We welcome collaboration and Building a global zero emissions economy is a daunting task, butMarkets it (SMI) isInitiative one that financial O V 20 20 K E Y: 1000+ input to improve our work; iffirms you are increasingly embracing. Financial Net Zero Alliances are on the rise, as they N T: ES 500–1000 have additional alliances thatband you together to better address the challenge. Our infographic below navigates the web Sustainability 30 Represents the number of members/signatories/ think ought to be represented in the of Financial Net Zero Alliances, from the initial founders (as early as 1989-2016) to the (S30) investors/companies within 100–500 each group, as of June 2021 network, please feel free to email us at group of organisations involved today. It gives a very real sense of the intertwined 50–100 NetZero@gongcommunications.comevolving scale of the movement, and increasingly makes the 'Race to Zero'* look like an and we will include them. achievable goal. 5–50
FIVE The planet’s average surface temperature has risen about 2.12 degrees Fahrenheit THINGS (1.18 degrees Celsius) since the late 19th century. The years 2016 and 2020 are tied for YOU the hottest on record. The global sea level rose about 8 inches (20 centimetres) in the last MIGHT century. The rate in the last two decades, however, is nearly double that of the last century and accelerating slightly every year. NOT HAVE Since the beginning of the Industrial Revolution, the acidity of surface ocean KNOWN waters has increased by about 30%. This increase is the result of humans emitting more carbon dioxide into the atmosphere and hence ABOUT Did you know that cement production is more being absorbed into responsible for 8–12% of the world’s CO2 the ocean. The ocean has emissions? In fact, if the cement industry absorbed between 20% and were a country, it would be the third largest 30% of total anthropogenic carbon dioxide emitter in the world with up CLIMATE carbon dioxide emissions in to 2.8bn tonnes. Learn more in our Africa Net recent decades (7.2 to 10.8 Zero series, in which we speak to Wolfram billion metric tons per year). Schmidt about his research into alternative materials like cassava and other agricultural CHANGE residues as a source of ‘green’ African-made cement for future sustainable construction on the Continent.
SET YOURSELF A PERSONAL CHALLENGE OR TWO! Can you cut a tonne of carbon from your own lifestyle? Here are a couple of CO2 This is the challenge from Nigel Topping and the Race to Zero team: https://racetozero.unfccc.int/reduce-replace-repair-cut-a-tonne-in-21/ ideas to try at home, as we all do our personal bit Can you guess which foods have large or small carbon footprints? to fight climate change: Watch the Horizon programme Feast to Save the Planet to see which you get right: https://www.bbc.co.uk/programmes/m000qzyd
FAQs WHAT IS A CARBON SINK? A forest, ocean, or other natural environment viewed in terms of its ability to absorb carbon dioxide from the atmosphere. Coal, oil, natural gases, methane hydrate and limestone are all examples of carbon sinks. After long processes and under certain conditions, these sinks have stored carbon for millennia. On the contrary, the use of these resources, considered as fossil, re-injects the carbon they hold into the atmosphere. IS THERE A DIFFERENCE BETWEEN CARBON SEQUESTRATION AND CARBON REMOVAL? Carbon removal is not the same as carbon capture. After capture, carbon dioxide (CO2) can be compressed and then transported to a site where it is injected underground for permanent storage (also known as “sequestration”). Carbon is sequestered in soil by plants through photosynthesis and can be stored as soil organic carbon (SOC). Agroecosystems can degrade and deplete the SOC levels but this carbon deficit opens up the opportunity to store carbon through new land management practices. Carbon removal is the process of removing carbon dioxide from the atmosphere. Products that are carbon net negative lock up more CO2 in their creation than the processes to make them emit. This is known as carbon capture and usage (CCU). Wooden building elements produced in a carbon neutral process lock the carbon up for at least 50 years, or in the case of biochar as a soil improver, potentially for hundreds of years. Scaling these products and many of others like them could help to slow climate change — but it is not a substitute for cutting greenhouse gas emissions. WHAT ARE THE BEST EXAMPLES OF CARBON CAPTURE? We have written a blog outlining our favourite examples from around the world: https://gongcommunications.com/looking-for-carbon-capture-inspiration-we-have-you-covered/ WHAT’S REGENERATIVE AGRICULTURE? “Regenerative Agriculture” describes farming and grazing practices that, among other benefits, mitigate climate change by rebuilding soil organic matter and restoring degraded soil biodiversity – resulting in both carbon drawdown and improving the water cycle.
FAQs WHAT IS THE UNFCCC? The United Nations Framework Convention on Climate Change WHAT IS ARTICLE 6 OF THE PARIS AGREEMENT? Article 6 is a much debated element of the Paris Agreement, (UNFCCC) is an international environmental treaty against climate which contains three separate mechanisms for “voluntary change, negotiated and signed by 154 states at the United cooperation” towards climate goals: two based on markets and a Nations Conference on Environment and Development, informally third based on “non-market approaches”. known as the Earth Summit, held in Rio de Janeiro from 3 to 14 June 1992. In simple terms, the first mechanism would allow a country that has beaten its Paris climate pledge to sell any overachievement to a nation that has fallen short against its own goals. This WHAT IS THE UN’S REDD+ PROGRAM? overachievement could be in terms of emissions cuts, but might also cover other types of target. For example, some countries have REDD+ is a voluntary climate change mitigation approach set goals for renewable energy capacity or forest expansion. that has been developed by Parties to the UNFCCC. It aims to incentivize developing countries to reduce emissions from The second mechanism would create a new international carbon deforestation and forest degradation, conserve forest carbon market, governed by a UN body, for the trading of emissions stocks, sustainably manage forests and enhance forest carbon reductions created anywhere in the world by the public or private stocks. It was established in September 2008 and counts 65 sector. Carbon credits could, for example, be generated by a new partner countries among its members. renewable power plant, an emissions-saving factory upgrade or the restoration of an area of forest. This new market is sometimes referred to as the “Sustainable Development Mechanism” (SDM). WHAT IS THE KYOTO PROTOCOL’S CLEAN DEVELOPMENT MECHANISM? The final Article 6 mechanism for “non-market approaches” is less well defined, but would provide a formal framework for climate The Clean Development Mechanism (CDM) operated under cooperation between countries, where no trade is involved, such the predecessor to the Paris Agreement, known as the Kyoto as development aid. This could include similar activities to those Protocol, and gave developed countries legally-binding emissions under the other mechanisms – support for a new windfarm, for targets that applied from the start of 2008 until 2012. example – but without any buying and selling of the resulting CO2 savings. The CDM allowed emission-reduction projects in developing The three separate mechanisms – under Article 6.2, 6.4 and 6.8 countries to earn certified emission reduction (CER) credits, each – all became part of the Paris deal in recognition of the different equivalent to one tonne of CO2. These CERs could be traded and interests and priorities among parties to the agreement. sold, and used by industrialized countries to a meet a part of their emission reduction targets under the Kyoto Protocol. The mechanism stimulated sustainable development and emission reductions, while giving industrialized countries some flexibility in how they met their emission reduction limitation targets.
FAQs WHAT IS ADDITIONALITY? This is a controversial concept, relating to carbon offsetting. constraints. This could lead to an increase in their total emissions. It focuses on whether a carbon offsetting activity would have occurred if all else were constant. If it would, then the project WHAT ARE NATURE-BASED SOLUTIONS? would not be ‘additional’. Additionality is often hard to measure Nature-based solutions (NbS) involve working with nature to and, therefore, to prove. address societal challenges, providing benefits for both human well-being and biodiversity. Specifically they are actions that WHAT IS PERMANENCE? involve the protection, restoration or management of natural and semi-natural ecosystems; the sustainable management This relates to sequestration projects ensuring that emissions of aquatic systems and working lands such as croplands or are kept out of the atmosphere for a reasonable length of time. timberlands; or the creation of novel ecosystems in and around cities. They are actions that are underpinned by biodiversity and WHAT IS DOUBLE-COUNTING? are designed and implemented with the full engagement and Double counting refers to a situation where two parties claim consent of local communities and Indigenous Peoples. the same carbon removal or emission reduction. Learn more in our blog on the economic potential of NbS here: WHAT IS LEAKAGE? https://gongcommunications.com/economic-potential-of-nature- based-solutions/ Carbon leakage refers to the situation that may occur if, for reasons of costs related to climate policies, businesses were to transfer production to other countries with laxer emission Head Office 1 Blandford Street | London | W1U 3DA | United Kingdom T: +44 (0)20 7935 4800 | E: info@gongcommunications.com As a certified B Corporation, Gong Gong Communications Kenya Ltd Communications is committed to continuing to be a carbon net negative business, and Ikigai Nairobi | General Mathenge Drive | Nairobi | Kenya to help purposeful companies communicate T: +254 (0) 721230926 | E: info@gongcommunications.com their positive impact. To learn more about what this means in practice, view our 2020 Impact Report, here. www.gongcommunications.com
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