Submission to UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities

Reclaim Finance argues that net-zero commitments must be aligned with a 1.5°C temperature goal, requiring an immediate cessation of investment in new oil, coal, and gas projects. The submission emphasizes that at least 90% of reductions should be achieved by stopping emissions at the source, with carbon removals reserved only for residual emissions. It calls for absolute interim targets—specifically a 50% reduction in CO2 by 2030—and transparent transition plans that include meaningful sanctions for non-compliance. The document also warns against the use of fossil gas as a transition fuel and the practice of selling high-emitting assets to avoid decarbonization targets.

• To align with the Paris Agreement and a 1.5°C temperature goal, net-zero pathways must involve no new oil and gas field development and no new exploration. This requires a global reduction in oil and gas production and consumption of 30% by 2030, averaging a 3% annual decrease.
• Net-zero commitments should prioritize rapid emission reductions over the short and medium terms, with at least 90% of reductions achieved by stopping emissions at the source. Carbon removals and offsets should not be used to meet interim targets and should only be used for long-term carbon negativity or residual emissions that have no viable non-carbon alternatives.
• Under the principle of common but differentiated responsibilities (CBDR), financial institutions operating primarily in the global north should adopt more ambitious targets than the global average, including interim CO2 reductions of more than 50% by 2030.
• Credible transition plans for financial institutions must include an immediate end to coal sector support, a stop to all fossil fuel expansion, and a phase-down of oil and gas support. These plans should avoid framing fossil gas as a 'transition fuel' due to its high climate impact and potential for carbon lock-in.
• Financial institutions must ensure that decarbonization is achieved through the actual shutdown of high-carbon infrastructure rather than the sale of assets to owners without net-zero commitments. The document notes that between 2017 and 2021, 155 transactions worth over $86 billion involved oil and gas companies with net-zero commitments selling assets to companies without such commitments.
• For financial institutions, reaching net zero requires reducing Scope 3 emissions from lending, investing, underwriting, insurance, and advisory activities to zero, using absolute metrics rather than intensity metrics to ensure real-world reductions.
• Verification of transition plans is currently insufficient; a Reclaim Finance analysis found that of 47 coal companies required to present transition plans to their financiers, only three produced credible plans. Consequently, GFANZ and Race to Zero must implement transparent compliance mechanisms that include delisting for non-compliant members.

APA

Reclaim Finance (2022). Submission to UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities. https://reclaimfinance.org/site/wp-content/uploads/2022/08/RF-Submission-to-HLEG-on-NZ-Criteria-Aug-2022.pdf

Chicago

Reclaim Finance. Submission to UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities. 2022. https://reclaimfinance.org/site/wp-content/uploads/2022/08/RF-Submission-to-HLEG-on-NZ-Criteria-Aug-2022.pdf.

Wikipedia

{{cite press release |author=Reclaim Finance |title=Submission to UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities |date=26 August 2022 |url=https://reclaimfinance.org/site/wp-content/uploads/2022/08/RF-Submission-to-HLEG-on-NZ-Criteria-Aug-2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{reclaimfinance2022submission, author = {{Reclaim Finance}}, title = {{Submission to UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities}}, publisher = {Reclaim Finance}, year = {2022}, month = aug, url = {https://reclaimfinance.org/site/wp-content/uploads/2022/08/RF-Submission-to-HLEG-on-NZ-Criteria-Aug-2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }