The UN sets minimum criteria for decarbonization and avoiding ‘greenwashing’

The high-level expert group on net-zero emission commitments of non-state entities (companies, financial institutions, cities and regions) has presented on Tuesday a report to the Secretary General of the United Nations in which it establishes minimum criteria to ensure that the decarbonization commitments presented are true and thus avoid ecological laundering, Also known as ‘greenwashing’.

The presentation took place at the XXVII Conference of the Parties to the UN Framework Convention on Climate Change that faces its third day in Sharm-El Sheikh (Egypt). The report addresses eco-bleaching and questions “unsound” net-zero emissions pledges that threaten to undermine efforts for global to reduce greenhouse gas emissions in order to reach the goal of limiting the planet’s temperature by the end of the century to 1.5°C.

Catherine McKenna, chair of the UN expert group, said the proposal provides a “crucial roadmap for the integrity of carbon neutrality commitments by non-state entities and in support of a global and equitable transition to a sustainable future.”

The report has been prepared over seven months by 17 experts appointed by the UN Secretary General, Antonio Guterres, and includes ten practical recommendations to bring integrity, transparency and accountability to the commitments made on carbon neutrality through the provision of clear rules and criteria.

“It’s about reducing real emissions without cheating. Our roadmap provides clear rules and criteria to be followed when developing carbon neutrality commitments. Today, the planet cannot afford any more delays, excuses or ecological bleaching,” he said.

The recommendations are based on credible initiatives such as Race to Zero or The Science Based Targets Initiative and call on non-state entities to commit to immediately reducing absolute emissions throughout their value chain with science-based short-, medium- and long-term objectives.

In addition, it states that transition plans must be detailed and show immediate emissions reductions, while capital investments must be aligned with these objectives and with the trajectory of net zero emissions of the non-state entity.

To avoid distortion (or manipulation) in climate accounting and other actions designed to circumvent actual emissions reductions outright, non-state entities should publish progress made annually. In that regard, the recommendations insist that both the transition plans and the annual progress report, the information of which should be comparable with that of their counterparts, should be verified by an independent expert.

The expert group’s report sets new red lines to prevent greenwashing, with recommendations such as that non-state entities cannot declare themselves “net zero” while they continue to build or invest in fossil fuels. Similarly, deforestation and other environmentally destructive activities are considered unacceptable.

Likewise, on buying cheap credit, which often lacks integrity, rather than directly reducing their own emissions throughout their value chain. High-quality credits should only be used to balance residual emissions once a non-state entity meets its short- and medium-term objectives.

Focus on reducing your emissions intensity rather than your absolute emissions or treat only a portion of your emissions instead of taking into account all your emissions generated along your value chain.

The proposals go through exercising on governments and authorities to distort their climate policies or their ambition, either directly or through industry, commercial associations or other bodies.

Instead, they must align their lobbying policies, as well as their business strategies and internal governance, in line with the climate commitments adopted, which requires aligning capital investments with net-zero targets and linking their executives’ compensation to the results obtained and verified from their climate action.

The report also recommends considering mandatory minimum criteria, i.e. moving from voluntary initiatives to establishing a mandatory framework regulating carbon neutrality for large companies and financial institutions. Thus, he advises starting with the largest corporate issuers, who should be required to verify their commitments and their progress reports, which, in turn, should be required annually.

The climate change scientist and member of the group of experts Bill Hare, has explained that no one can deny the need to reduce emissions immediately and drastically.

“If industry, financial institutions, cities and regions really live up to their promises on net-zero emissions, they will adopt these recommendations.”

For her part, the counselor of the National Securities Market Commission (CNMV) and rapporteur of the EU Platform on sustainable finance, Helena Viñes-Fiestas, believes that companies and financial institutions, cities and regions that adopt these recommendations will be those that will lead the energy transition and contribute to its acceleration. “Only then will we ensure that we all do our bit to reduce emissions and that all these voluntary pledges to achieve carbon neutrality are useful,” he said.

Finally, the Third Vice-President and Minister for the Ecological Transition and Demographic Challenge, Teresa Ribera, has shown Spain’s full commitment to accelerating the transition towards renewable energies, capable of protecting citizens from the current crises, such as energy and food security that devastate our economies.

“To achieve this, it requires robust, reliable and transparent planning. I encourage all those who have committed to net-zero emissions targets to adopt the recommendations so that we can demonstrate the integrity and seriousness of their promises. I congratulate the group of experts for having mapped out the path that must be followed equitably to achieve climate neutrality,” he said.

Source: Valencia Plaza