Net zero transition – the latest signals of change: June 2, 2023
We Mean Business Coalition
The latest net zero signals of change include a new high for G20 countries’ clean energy capacity and landmark EU legislature on CTAPs.
Energy
Wind and solar power now account for 13% of electricity generation in G20 countries, up from 5% in 2015 – according to Ember’s latest Global Electricity Review. Hydropower leader Brazil topped the clean energy generation charts, with 89% of its power coming from fossil-free sources in 2022. The share of coal-powered electricity in the G20’s mix dropped to 39%.
New research from the International Energy Agency (IEA) released yesterday found that renewable power capacity is set to increase by a record 33% this year. That’s good news for companies committed to procuring 100% renewable energy through RE100. Solar photovoltaics are forecast to lead the way, supported by a doubling in manufacturing capacity to 1,000 GW by 2024.
Staying with solar, Enel has announced plans to build a solar cell and panel manufacturing facility in Oklahoma, USA that would employ 1,000 people. The company will invest $1 billion in the project, which will have an annual production capacity of 3 GW, with construction scheduled for fall this year. The state’s Republican Governer Kevin Stitt called it “a huge win for Oklahoma.”
Net Zero Economy / Finance
Yesterday, the European Parliament voted for groundbreaking new rules that will make it mandatory for companies to create and implement climate transition action plans aligned with the goals of the Paris Agreement. The Corporate Sustainability Due Diligence Directive (CSDDD) will also require companies with more than 1,000 employees to tie directors’ compensation to performance in delivering the plans.
Meanwhile, finance professionals looking to align their greenhouse gas (GHG) reporting with new regulations can now turn to a dedicated guide published this week by the We Mean Business Coalition and the International Federation of Accountants (IFAC). “This guidance demonstrates that robust GHG reporting is not an onerous task, but rather one that can be incorporated, at minimal cost, into existing systems and processes,” explained our CEO María Mendiluce in BusinessGreen.
And 288 financial institutions representing over $29 trillion in assets are set to write to some of the world’s biggest companies to urge them to disclose their climate and environmental impact. Through its 2023 disclosure campaign, Coalition partner CDP and the investors will target high emitting companies yet to disclose through CDP’s platform, which opened for this year’s disclosure submissions in April.
Transport
Coalition partner Climate Group and the Electric Fleets Coalition of 28 leading UK businesses is calling for an ambitious zero-emission vehicle (ZEV) mandate in the country. The group, which includes BT, LeasePlan and Openreach has asked the government to set clear, ambitious sales targets for ZEVs ahead of the UK’s phase-out of new petrol and diesel cars and vans by 2035.
GM and Korea’s Posco Future have secured half of the financing for a $442 million (USD) EV battery component plant in Quebec, Canada. The project, which secured government funding after being first announced last year, is expected to create 200 jobs and to be in operation within two years.
While in Europe, electricity has displaced diesel as the top-selling power source for city buses across EU countries and the UK – marking the first time a zero-emission technology has become dominant in a road transport sector in Europe. Elsewhere, Saudi Arabia’s Neom Green Hydrogen Co. intends to supply hydrogen for buses and trucks domestically and for export from next year.
Land & Nature
Oatly has announced the launch of a global regenerative agriculture pilot to work with farmers to dramatically reduce greenhouse gas emissions. The company’s Future Agriculture Renovation Movement (FARM) aims to restore carbon, improve biodiversity, and support farm viability. The pilot initiative will test several different models of regenerative agriculture in Canada, Sweden, the USA, Finland, and the UK, and will scale globally if successful.
Tesco has confirmed it has surpassed its target to ensure 85% of its surplus food is redistributed to community groups and charities, in partnership with FareShare and Olio. The UK supermarket giant applies a food waste hierarchy that minimizes waste at source, redistributes edible food, and diverts additional surplus to be converted to pet or animal feed where possible. The remaining 12% is sent to energy recovery from anaerobic digestion or incineration, ensuring the company sends no food waste to landfill.
And B-Corp-certified Handsome Brook Farms is partnering with Green America’s Soil Carbon Initiative (SCI) to accelerate regenerative agriculture on hen farms across the USA. New measures to be implemented include tree and shrub establishment in pasture, cross-fencing to promote vegetative cover and more robust rotational grazing strategies.
Built Environment & Heavy Industry
In built environment news, smart building technology provider Honeywell and sustainable design and engineering company Arcadis have announced a collaboration to deliver services to enhance energy efficiency in commercial buildings across the globe. For building owners who have committed to reducing their carbon emissions, the partnership will provide a software suite to track progress.
NatWest plans to allocate more than £1 billion in lending to support UK manufacturers to develop new clean energy and low-carbon technologies. Eligible projects include schemes to improve the energy efficiency of buildings, new renewable energy projects and energy storage. Manufacturing accounts for more than 60% of direct industrial emissions in the UK.
Lastly, Taiwan Cement has indicated its plans to cut its emissions intensity through the use of renewables in its operations and by exploring carbon capture, storage and utilization technologies. The company’s chairman Nelson Chang, speaking at its annual shareholders’ meeting, also said the firm will scale up its energy storage and EV-charging business arms.
Company Commitments
Total number of companies committed to RE100: 407
Total number of companies committed to EP100: 125
Total number of companies committed to EV100: 129
Total number of companies committed to EV100+: 5
Total number of companies committed to SteelZero: 36
Total number of companies committed to ConcreteZero: 30
Total number of companies and SMEs committed to SBTi: 5,201 (2,425 committed, 2,776 approved)
Total number of SMEs committed to SME Climate Hub: 6,076
Total number of companies committed to The Climate Pledge: 400
** Please note that we have paused listing individual new commitments while we develop a new way to display them. We hope to share the new format with you soon. **
Webinars & Events
Ecosperity Week: June 6-8
Climate Group Asia Action Summit: June 8
Eurelectric Power Summit: June 20-21
Coalition Jobs
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