Defining net zero
Net zero implies reducing greenhouse gas emissions as close as possible to zero while ensuring that the emissions arising from human activity that cannot be reduced are absorbed from the atmosphere.
Reaching net zero globally will require sector-wide decarbonisation and the financing of carbon removals to ensure that unavoidable emissions are permanently stored and do not return to the atmosphere.
The need for net zero
According to the Intergovernmental Panel on Climate Change, emissions need to be reduced by 45% by 2030, and the world needs to reach Net Zero by 2050 if we are to limit warming to no more than 1.5°C relative to preindustrial levels.
Limiting warming to no more than 1.5°C relative to preindustrial levels is critical to mitigate the worst effects of climate change on people, biodiversity and our societies.
Implications for businesses
The most widely accepted definition of Net-zero for business is that of the Science-Based Targets Initiative (SBTi). According to the SBTi, corporations intending to reach net zero emissions must:
- Achieve a scale of value-chain emission reductions consistent with the depth of abatement achieved in pathways that limit warming to 1.5°C.
- Neutralise the impact of any source of residual emissions that remains unfeasible to be eliminated by permanently removing an equivalent amount of atmospheric carbon dioxide.
Therefore, science-based net-zero targets go beyond requiring a reduction of emissions in line with the requirements set by the Paris Agreement, as companies must take responsibility for the emissions that they cannot reduce.
Under this standard, companies will need to reduce the emissions arising in their operations and value chains by 90-95%. They will also be required to set near (2030) and long-term (2050) reduction targets.
Following the lead
Elopak, a Norwegian packaging company, is leading the way in setting Science-based net-zero targets. It has set both:
- Short-term targets: Elopak commits to reducing its absolute scope 1 & 2 emissions by 42% by 2030 and its scope 3 emissions by 25% within the same timeframe.
- Long-term targets: Elopak commits to reducing their absolute scope 1, 2 & 3 emissions by 90% by 2050.
To reach these targets, the company is focusing on sourcing renewable electricity and decarbonising its heat production.