Baku, Nov 15 (Representative) High-Level Expert Group (HLEG) on Net-Zero Emission Commitments of Non-State Actors| on Thursday asserted that net zero can be achieved and questioned the credibility of claims |by companies, investors, cities and regions that moving faster on the climate crisis was “too difficult”.“However, to meet the 1.5C Paris Agreement target (on global warming), we need a much broader range of companies, investors, cities, and regions to build on these examples and produce high-integrity transition plans in 2025,” HLEG Chairperson Catherine McKen pointed out while disclosing the HLEG review report at the COP29 here.Many cities, states and regions are seeing the economic opportunity of the energy transition up close and are moving to capture it. Nearly 100 of the world’s leading cities have developed a climate action plan compatible with the goals of the Paris Agreement|, said McKen.
According to the Net Zero Tracker, 1,145 of the 2,000 largest listed public companies in the world have voluntarily opted for net zero commitments – an increase of 23% since June 2023, with a marked rise in Asia. However, only a small percentage of those targets and plans are aligned with the criteria set out in the report “Integrity Matters: Net Zero commitments by businesses, financial institutions, cities and regions adopted at COP27.The HLEG study identified a severe lack of voluntary commitments to phase out fossil fuels. Phasing out of fossil fuels must underpin all transition plans, along with increased support for efforts to double energy efficiency and triple renewables. Other major gaps in voluntary net zero commitments include a demonstrated alignment with investment plans, the integration of nature and just transition commitments, and requirements for independent auditing, verification and assurance, it said.“We also need governments to step up and regulate net zero pledges to address competitive issues and to provide certainty for investment decisions,” McKenna pointed out. A recent World Business Council on Sustainable Development report on leading companies shows that 90% percent of businesses say they are prepared to invest more if governments implement policies to address sector barriers.
As countries submit new Nationally Determined Contributions (NDCs) in 2025, more alignment with non-state actors is needed. By driving corporates to set rigorous net zero targets and plans, countries can boost the credibility of national climate goals.Echoing UN Secretary-General António Guterres, she said, “Every city, region, industry, financial institution, and company must also be part of the solution. They must present robust transition plans by COP30 next year in Brazil at the latest: Plans aligned with 1.5 degrees, and the recommendations of the UN High-Level Expert Group on Net Zero.”“Climate change is accelerating and the clean energy transition is inevitable. Business, investors, cities and regions have the tools to act decisively already and they should work with national governments to achieve the Paris Agreement goals. Every fraction of a degree matters and every ton of CO2 makes a difference. We must do the hard work now, or we will all face the consequences tomorrow,” she concluded.