Companies “must stop funding coal, oil and gas if their claims to be aligned to net-zero emissions are anything more than greenwash”, according to a UN report released at Cop27.
The evaluation of pledges to become climate neutral declared by businesses, financial institutions, cities and other “non-state” actors was commissioned last year at Cop26 in response to indications of widespread greenwashing.
“Too many of these net-zero pledges represent little more than empty slogans and hype,” said Canadian former environment minister Catherine McKenna in Sharm el-Sheikh, Egypt. “You cannot be a net-zero leader while continuing to build or invest in fossil fuel supply.”
Thousands of big businesses and cities have declared commitments to reaching net-zero emissions by 2050, in line with the Paris Agreement climate targets, but the report finds claims often do not stand up to scrutiny, and there is a lack of transparency.
Speaking at a launch event, UN secretary general António Guterres singled out “fossil fuel companies and their financial enablers”.
“So-called ‘net-zero pledges’ that exclude core products and activities are poisoning our planet. They must thoroughly review their pledges and align them with this new guidance,” he said.
Ms McKenna said: “Our roadmap provides clear standards and criteria that must be followed when developing net-zero commitments. Right now, the planet cannot afford delays, excuses, or more greenwashing.”
The report sets “new red lines intended to prevent greenwashing”. It recommends non-state actors can no longer:
● Claim to be net zero while continuing to build or invest in new fossil fuel supply. Similarly, deforestation and other environmentally destructive activities are disqualifying.
● Buy cheap credits that often lack integrity instead of immediately cutting their own emissions across their value chain. High-quality credits should only be used to balance out all remaining emissions once a non-state actor is meeting its short and medium-term targets.
● Focus on reducing the intensity of their emissions rather than their absolute emissions or tackling only a part of their emissions rather than full emissions extending throughout their supply chains.
● Lobby to undermine ambitious government climate policies either directly or through trade associations or other bodies.
“A growing number of governments and non-state actors are pledging to be carbon-free – and that’s good news. The problem is that the criteria and benchmarks for these net-zero commitments have varying levels of rigour and loopholes wide enough to drive a diesel truck through,” Mr Guterres said.
On environmental integrity, the Intergovernmental Panel on Climate Change (IPCC) “is our scientific north star”, he said. “Net-zero pledges must be in line with IPCC scenarios limiting warming to 1.5 degrees. That means global emissions must decline by at least 45 per cent by 2030 – and reach net zero by 2050... and these targets must cover all greenhouse gas emissions and all scopes of emissions.
“For financial institutions, this means all financed activities. For businesses, it means all emissions – direct, indirect and those originating from supply chains. And for cities and regions, it means all territorial emissions,” he said.
“Using bogus ‘net-zero’ pledges to cover up massive fossil fuel expansion is reprehensible. It is rank deception. This toxic cover-up could push our world over the climate cliff. The sham must end.”
