How the Private Sector Can Help Mitigate Climate Change
Companies can drive collaborative actions towards preserving nature and reducing climate impact.
This article is sponsored by Tetra Pak.
Without immediate action and emissions reductions across all sectors, limiting global warming to 1.5 degrees Celsius will be well beyond reach. According to a 2022 IPCC report, global greenhouse gas emissions need to stabilize before 2025 and be reduced by 43 percent by 2030, which is why urgent climate action from both the public and private sector is vital.
In recent years, multinational corporations have become more engaged, recognizing their duty to preserve nature and reduce their climate impact, whether it be because of societal pressure, their own initiative or financial risk.
The race to net zero is on. However, there is a lack of consensus on how to translate global reduction targets into company-specific actions. The voluntary carbon credit market is unregulated, but there are moves to introduce more credibility and prove its usefulness. For example, the International Emissions Trading Association (IETA) found that implementing an international carbon market under the Paris Agreement could lead to cost reductions of $250 billion per year in 2030 and therefore facilitate investment leading to carbon reductions of 50 percent.
Moving from discussion to implementation isn’t enough. A long-term, collaborative approach needs to be at the heart of all pledges, initiatives and agreements to meet climate targets. Two examples of this are the preservation of the world’s biodiversity and water resilience.