Poorest nations should not be left behind in race to net-zero emissions

OVER the past year, the term "net zero" has become a buzzword, as has ESG (environmental, social and governance) for investments. Net zero refers to commitments by countries and corporates to balance greenhouse gas emissions (GHG) against GHG removed from the atmosphere. A net-zero state is achieved when GHG emitted is no more than the amount removed.

Net zero is seen as imperative if the world is to rein in the rise of global temperatures to no more than 1.5 degrees Centigrade. The end-target is net zero by 2050, with an interim goal of 50 per cent reduction in emissions by 2030. More than 125 countries have so far committed to net zero by 2050, including China and the US. As for corporates, an estimated 20 per cent of the world's 2000 largest public companies, representing sales of over US$14 trillion, have committed to net zero.

All that sounds good, but as always, the devil is in the details. The Energy & Climate Intelligence Unit notes - in a quantitative analysis of net-zero commitments by countries and companies - that the commitments "vary hugely in their quality". Only 20 per cent of existing targets meet a minimum set of robustness criteria, and there is also little clarity around offsetting.