Weekly Roundup November 25
Invert is focused on providing clients and subscribers up-to-date news on net-zero developments, carbon markets, and how many sectors are evolving to meet climate change goals and ESG requirements.
CEQ Launches Global Net-Zero Government Initiative, Announces 18 Countries Joining U.S. to Slash Emissions from Government Operations
The Net-Zero Government Initiative was launched by the US Council on Environmental Quality (CEQ) during COP27, inviting governments to achieve net-zero emissions from national operations by no later than 2050. A total of 18 countries have joined the initiative thus far, including Australia, Canada, the UK, and Japan, who will all work on developing a roadmap by COP28 that outlines their net-zero pathways, including interim targets for their commitments.
Invert Insights: Government action is continuing to play a leading role in the transition to a decarbonized world. Building on the earlier announced Federal Supplier Climate Risks and Resilience Rule, the expanded reach of this new initiative, led primarily by OECD countries, will support the development of new industries and sustainable technologies and drive the emissions reductions needed to achieve our climate goals.
The Canadian Government rolled out the Global Carbon Pricing Challenge at COP27, calling on all countries to adopt pollution pricing as a core component of their climate strategies. The challenge aims to expand the use of carbon pricing, which currently covers approximately 20% of global greenhouse gas emissions, to a collective goal of 60% of global emissions by 2030.
Invert Insights: Carbon pricing, or pricing pollution, is one of the most effective ways for capturing the external costs of greenhouse gas emissions and incentivizing climate action. Carbon pricing sends an economic signal to emitters to either change their behavior and reduce emissions, thereby avoiding the additional costs, or continue emitting and face increasing costs to do so.
New legislation passed in Switzerland that will now require Swiss companies and financial institutions to publicly disclose their climate-related risks, impacts of company activities on climate change, and their transition plans. The ‘Ordinance on Climate Disclosures’ will require companies with 500 or more employees to provide reporting based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, disclosure of greenhouse gas emissions, emissions reductions targets, and details on how the targets will be achieved. Enforcement of the new rule will come into effect in January 2024, with the first year of reporting in 2025.
Invert Insights: Switzerland joins the growing list of countries implementing mandatory climate reporting to address the growing recognition of climate risk and the need for consistent and transparent reporting. Companies who prepare themselves now for the future of mandated climate reporting can ensure they are equipped to identify, manage, and price their climate risks.