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.

Partagez:

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.

Frontier Infrastructure Holdings has signed an offtake agreement with manager Wild Assets for up to 120 000 tonnes of BECCS credits, underscoring the voluntary market’s growing appetite for traceable, high-permanence carbon removals.
Global carbon capture and offset credit markets could exceed $1.35 trillion by 2050, driven by private investment, technological advances, and regulatory developments, according to analysis published by Wood Mackenzie.
The Australian carbon credit market is experiencing temporary price stabilization, while the emergence of new alternative financial instruments gradually attracts corporate attention, subtly altering the commercial and financial dynamics of the sector.
Norway has launched a major industrial project aimed at capturing, maritime transport, and geological storage of CO₂, mobilizing key energy players and significant public subsidies to ensure economic viability.
A €21mn European grant, managed by EIB Global, will fund Egyptian projects aimed at cutting industrial emissions and boosting recycling, while a related €135mn loan is expected to raise additional climate investments.
Stockholm Exergi begins construction of a CO₂ capture facility in Stockholm, integrated with the expansion of Northern Lights in Norway, reaching a total storage capacity of 5 million tonnes per year by 2028.
Global emissions coverage by carbon pricing systems reaches 28%, driven by expanding compliance markets, where demand nearly tripled within one year, according to a World Bank report.
Vietnam initiates a pilot carbon market targeting steel, cement, and thermal energy industries to prepare for nationwide regulation starting in 2029.
The U.S. Environmental Protection Agency (EPA) proposes granting Texas direct authority to issue carbon dioxide injection permits, potentially accelerating the commercial expansion of geological CO₂ storage projects.
Höegh Evi and Aker BP received Approval in Principle from DNV for a maritime carrier designed to transport liquefied CO₂ to offshore storage sites in Norway.
Norne and the Port of Aalborg begin construction of a 15 mn tonne per year CO2 terminal, supported by an EU grant.
The Lagos State government has launched a programme to deploy 80 million improved cookstoves, generating up to 1.2 billion tonnes of tradable carbon credits.
The US Department of Energy has cancelled 24 projects funded under the Biden administration, citing their lack of profitability and alignment with national energy priorities.
In the United States, the carbon black market faces unprecedented fluctuations in the first half of 2025, driven by declining industrial demand and persistent raw material volatility, casting doubts over the sector's future stability.
European and UK carbon markets paused this week as participants await clarity on future integration of both emissions trading systems.
A consortium led by European Energy has secured prequalification for a Danish carbon capture and storage project in Næstved, aiming to remove 150,000 tons of CO₂ per year under a national subsidy programme.
The joint project by Copenhagen Infrastructure Partners and Vestforbrænding is among ten initiatives selected by the Danish Energy Agency for public carbon capture and storage funding.
Canadian broker One Exchange partners with Stephen Avenue Marketing to create OX CO₂, a carbon trading platform combining digital technology and human expertise.
Russia has filed a complaint with the World Trade Organization (WTO) challenging the European Union's Carbon Border Adjustment Mechanism (CBAM), deeming it discriminatory and protectionist towards its strategic commodity exports.
BP recommends extending the UK emissions trading system through 2042 and calls for alignment with the European market while supporting the inclusion of carbon removals in the scheme.