popular articles

60% of companies aim for carbon neutrality, but efforts deemed insufficient

More than half the world's companies are committed to carbon neutrality, but experts condemn the lack of concrete action to achieve this goal, despite ambitious announcements.

Please share:

Nearly 60% of the world’s major listed companies have declared that they are aiming for carbon neutrality by 2050.
This trend is particularly marked in Asia, where Japanese, Chinese and South Korean multinationals have seen their number of commitments increase in recent years.
However, these announcements conceal a more complex reality: the majority of companies use offsetting mechanisms to compensate for their inability to effectively reduce their greenhouse gas emissions.
The report by the Net Zero Tracker consortium reveals that only 5% of companies surveyed meet all the carbon neutrality criteria defined by independent bodies such as the UN.
These criteria include precise emission reduction targets, consideration of greenhouse gases other than CO2, and limits on the use of carbon offsets.
In other words, companies’ current efforts to reduce their carbon footprint are still largely based on controversial practices.

Massive use of carbon offsets

The widespread use of carbon offsets, such as reforestation or the financing of green projects, is at the heart of the criticism.
Indeed, several independent studies question the real effectiveness of these mechanisms, which enable companies to present results on paper without actually reducing their emissions at source.
These offsets are sometimes perceived as a backdoor way of avoiding heavy investment in the direct decarbonization of their industrial processes.
Experts also condemn the poor quality of some of these initiatives.
Poorly supervised CO2 capture projects and unfulfilled promises of reforestation are fuelling mistrust of companies that rely heavily on offsets.
Energy sector players agree that, to achieve carbon neutrality, companies need to review their priorities by investing directly in emission-reduction technologies.

An urgent need for source reduction

According to analysts, priority should be given to reducing CO2 emissions by more than 90% before considering offsets.
However, the majority of companies concerned continue to favour temporary, low-cost solutions rather than committing to projects that will radically transform their activities.
The energy sector, in particular, is struggling to adopt the changes needed to reduce emissions at source.
Takeshi Kuramochi, analyst at the NewClimate Institute, points out that Asian companies, while growing in terms of commitments, still lack a coherent strategy to achieve real decarbonization.
This observation is shared by the Energy & Climate Intelligence Unit (ECIU) and the Data-Driven EnviroLab, who point to a global trend towards long-term objectives without detailed planning for intermediate steps.

Increased pressure on companies

Regulators, as well as investors, are beginning to exert increasing pressure on companies to account for their decarbonization actions.
Catherine McKenna, chair of the UN panel on “net zero” commitments, believes that these promises of carbon neutrality are only credible if they are accompanied by real transparency in emissions management.
To achieve this, companies need to integrate rigorous monitoring tools and short-term targets, while diversifying their investments in direct emissions reduction technologies.
According to McKenna, the global energy transition can only be achieved through the combined action of companies, governments and financial institutions.

Asian multinationals face up to their responsibilities

Asian companies, particularly those based in Japan, China and South Korea, are among the most active in announcing carbon neutrality.
However, according to Net Zero Tracker, many of these commitments remain vague, with unclear details of the concrete measures to be implemented.
The pressure on these companies is all the greater given that Asia is one of the biggest contributors to global CO2 emissions.
Initiatives such as Oxford Net Zero seek to encourage a more stringent and transparent approach to decarbonization.
These initiatives underline the importance of companies setting verifiable and measurable targets at every stage of the process, and not just announcing ambitions for 2050 without concrete plans for the next 5 or 10 years.
The report’s findings also show that the most advanced countries in this field remain concentrated in Europe, where regulators are imposing stricter requirements on companies.
This contrasts sharply with certain regions of Asia, where regulations remain less restrictive.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The outcome of Australia's elections could redefine national carbon market regulations, potentially triggering significant shifts in emissions reduction policies, directly impacting local carbon credit prices (ACCU).
According to the latest data from S&P Global Commodity Insights, voluntary carbon markets experienced a significant contraction, with renewable credit retirements dropping by 34% in March and issuances decreasing by half.
According to the latest data from S&P Global Commodity Insights, voluntary carbon markets experienced a significant contraction, with renewable credit retirements dropping by 34% in March and issuances decreasing by half.
Telecom operators and data centres recorded a rise in greenhouse gas emissions in 2023, diverging from the national decline reported during the same year.
Telecom operators and data centres recorded a rise in greenhouse gas emissions in 2023, diverging from the national decline reported during the same year.
Fidelis Infrastructure has entered a 15-year agreement with Microsoft to supply biomass-based carbon capture solutions in Baton Rouge, marking the world’s largest permanent carbon removal transaction to date.
Fidelis Infrastructure has entered a 15-year agreement with Microsoft to supply biomass-based carbon capture solutions in Baton Rouge, marking the world’s largest permanent carbon removal transaction to date.
The Danish government has granted Norne Thorning Storage an exploration licence to assess the Thorning geological structure for potential underground carbon dioxide storage by 2030.
Gevo and Future Energy Global have signed a multi-year agreement covering carbon credits from sustainable aviation fuels, supporting the construction of a new production facility in the United States.
Gevo and Future Energy Global have signed a multi-year agreement covering carbon credits from sustainable aviation fuels, supporting the construction of a new production facility in the United States.
In Brasilia, China and India urged BRICS members to resist carbon taxes and trade measures imposed without international consensus, calling for stronger existing multilateral frameworks.
In Brasilia, China and India urged BRICS members to resist carbon taxes and trade measures imposed without international consensus, calling for stronger existing multilateral frameworks.
Subsea7 has been awarded a major contract by Equinor for Phase 2 of the Northern Lights project, involving the installation of a CO2 pipeline offshore Norway, with operations scheduled for 2026 and 2027.
Subsea7 has been awarded a major contract by Equinor for Phase 2 of the Northern Lights project, involving the installation of a CO2 pipeline offshore Norway, with operations scheduled for 2026 and 2027.
Driven by investment in low-carbon technologies, the global decarbonisation market is expected to reach $4.7tn by 2033, according to Allied Market Research, with an average annual growth rate of 8.1%.
Norwegian joint venture Northern Lights, backed by Equinor, Shell and TotalEnergies, will invest NOK7.5bn to expand its CO2 storage infrastructure following a new industrial contract signed in Sweden.
Norwegian joint venture Northern Lights, backed by Equinor, Shell and TotalEnergies, will invest NOK7.5bn to expand its CO2 storage infrastructure following a new industrial contract signed in Sweden.
Japanese conglomerate Mitsubishi Corporation has entered into a strategic partnership with Alt Carbon to scale up carbon dioxide removal across South Asia through an emerging mineral-based technology.
Japanese conglomerate Mitsubishi Corporation has entered into a strategic partnership with Alt Carbon to scale up carbon dioxide removal across South Asia through an emerging mineral-based technology.
British and European carbon markets extended gains, boosted by geopolitical tensions and prospects of aligning emissions trading systems.
British and European carbon markets extended gains, boosted by geopolitical tensions and prospects of aligning emissions trading systems.
Carbon Mapper and Planet Labs PBC will provide satellite data to California in support of a public programme targeting emission reductions in high-intensity sectors.
A coalition of 30 companies and public organizations has launched an initiative to establish a standardized protocol for carbon credit data, aiming to improve transparency and accelerate the growth of carbon markets.
A coalition of 30 companies and public organizations has launched an initiative to establish a standardized protocol for carbon credit data, aiming to improve transparency and accelerate the growth of carbon markets.
Amid political uncertainty, CO2 capture players in the United States are shifting their messaging to safeguard the tax incentives crucial to their survival. The sector is now focusing on economic and strategic arguments to persuade the government.
Amid political uncertainty, CO2 capture players in the United States are shifting their messaging to safeguard the tax incentives crucial to their survival. The sector is now focusing on economic and strategic arguments to persuade the government.
8 Rivers Capital has entrusted Wood with the preliminary engineering and design phase of a carbon capture project in Wyoming. This project, carried out with PacifiCorp, aims to modernize an existing power plant by integrating a technology utilizing supercritical CO₂.
8 Rivers Capital has entrusted Wood with the preliminary engineering and design phase of a carbon capture project in Wyoming. This project, carried out with PacifiCorp, aims to modernize an existing power plant by integrating a technology utilizing supercritical CO₂.
Recent movements in Europe’s carbon market have generated keen interest among investors. The price has experienced a notable decline, fueling questions about the forces that could trigger a potential rebound. -
EU carbon permit prices declined at the end of February, influenced by market developments in gas and investor adjustments. Brussels' proposal concerning the CBAM has so far had little impact on market prices.
EU carbon permit prices declined at the end of February, influenced by market developments in gas and investor adjustments. Brussels' proposal concerning the CBAM has so far had little impact on market prices.
Baker Hughes and Frontier Infrastructure have announced a strategic partnership to accelerate the development of carbon storage and energy production projects in the United States, aimed at supporting the growing needs of data centres and industrial emitters.
Baker Hughes and Frontier Infrastructure have announced a strategic partnership to accelerate the development of carbon storage and energy production projects in the United States, aimed at supporting the growing needs of data centres and industrial emitters.
Perenco and its partners launch the first UK test for CO₂ injection into a depleted gas reservoir in the North Sea. This experimental phase aims to provide crucial data for the long-term geological storage of CO₂. ##
Perenco and its partners launch the first UK test for CO₂ injection into a depleted gas reservoir in the North Sea. This experimental phase aims to provide crucial data for the long-term geological storage of CO₂. ##
Lydian takes a strategic step forward by demonstrating a technology that uses captured CO2 and renewable electricity to produce sustainable aviation fuel, addressing both civil market demands and critical military needs.
A study published in Scientific Reports reveals new allometric equations dedicated to Colophospermum mopane. These models aim to better manage biomass and encourage decarbonization practices for economic players in the forestry sector.
A study published in Scientific Reports reveals new allometric equations dedicated to Colophospermum mopane. These models aim to better manage biomass and encourage decarbonization practices for economic players in the forestry sector.
Carbon dioxide removal strategies are expanding in India with new initiatives and a potential rise in demand in 2025. This article explores the major factors driving this trend and the technological perspectives.
Carbon dioxide removal strategies are expanding in India with new initiatives and a potential rise in demand in 2025. This article explores the major factors driving this trend and the technological perspectives.
A Norwegian shipowner has equipped an ethylene carrier with an onboard CO2 capture and storage system. The initiative could reduce its greenhouse gas emissions by 70%.
A Norwegian shipowner has equipped an ethylene carrier with an onboard CO2 capture and storage system. The initiative could reduce its greenhouse gas emissions by 70%.

Advertising