Search Climate Insights Directory

The document argues that ArcelorMittal's current climate strategy is inadequate to limit global warming to 1.5°C, citing a lack of absolute emission targets, a reliance on unproven carbon capture technologies, and a 'two-speed' approach that continues coal-based expansion in the Global South while deploying cleaner tech in Europe.

The NewClimate Institute argues that Germany's planned LNG terminal expansion exceeds necessary reserve buffers and threatens the country's climate targets. The report suggests that current floating terminals are sufficient for energy security, while further onshore expansion risks creating stranded assets and fossil fuel lock-ins. It criticizes the Federal Ministry for Economic Affairs and Climate Action (BMWK) and the Energy Economics Institute (EWI) for underestimating technical capacities in their analyses and for assumptions that conflict with the legally binding Climate Action Act.

The document addresses the 'dilemma' where financing the early retirement of coal plants increases a financial institution's portfolio emissions, potentially violating net-zero targets. It proposes four accounting alternatives: rebaselining, sectoral targets, 'bad portfolios', and Net Present Value (NPV) accounting. It also details various financing mechanisms such as Managed Transition Vehicles and repurposing plants, specifically in the context of JETPs in South Africa, Indonesia, and Vietnam.

Latin America possesses significant potential to lead in renewable energy, with over 319 GW of prospective utility-scale solar and wind capacity that could increase the region's current capacity by more than 460% by 2030. While Brazil, Chile, and Colombia are accelerating their buildouts and are on track to meet national targets, Mexico's progress has stalled due to policy shifts favoring state-owned fossil fuel entities. The report highlights the role of solar and wind in diversifying energy matrices to reduce reliance on drought-prone hydropower and the emerging economic opportunity of green hydrogen exports.

The document highlights a gap in corporate carbon accounting, noting that current practices focus more on the assignment of emissions than on the actual impact of climate actions. It advocates for consequential accounting to ensure that novel business models for emissions reduction deliver genuine progress toward 1.5°C goals.

The study finds that policy attention to Short-Lived Climate Pollutants (SLCPs) and air pollutants in NDCs increased significantly between pre- and post-2020 submissions, with a doubling of explicit references to these pollutants as priorities and a 45% increase in specific mitigation measures.

The report finds that GFANZ members, including major banks and asset managers, have provided hundreds of billions of dollars to companies expanding fossil fuel production. It argues that the alliance's sectoral guidelines and individual member policies are insufficient to prevent this expansion, often relying on flawed decarbonization targets that do not explicitly prohibit new fossil fuel supply. The document calls for the adoption of robust 'no-expansion' policies, alignment with UN Race to Zero criteria, and the implementation of meaningful accountability mechanisms to ensure financial flows are redirected toward clean energy.

The document proposes a 'portfolio-led approach' to assist financial institutions in implementing net-zero decarbonization targets. This approach utilizes a four-pillar framework to help banks identify where and how to support the real-economy transition across different sectors and geographies. It is designed to integrate into the three-stage process of strategy design, implementation, and reporting, and is compatible with existing frameworks such as the Glasgow Financial Alliance for Net-Zero (GFANZ) and the Net-Zero Banking Alliance (NZBA).

The Canadian Climate Institute highlights that while Canada's first Emissions Reduction Plan can meet 2030 obligations, success depends on the 2023 finalization of three key policies: an oil and gas emissions cap, the Clean Electricity Regulation, and carbon pricing improvements. The report emphasizes the need for a net-zero electricity grid by 2035, the implementation of the National Adaptation Strategy, and increased leadership from provincial, territorial, and Indigenous governments to mobilize green capital and reduce emissions.

The report finds that the fashion industry remains heavily dependent on synthetic fibres, with 25% of analyzed brands increasing their use over the last five years. It highlights a systemic lack of supply chain transparency, an over-reliance on recycled polyester from PET bottles as a 'false solution', and a failure to set absolute Scope 3 emissions targets. While many brands express support for the EU Textile Strategy's regulatory measures, the report argues there is a significant gap between these public stances and actual corporate action.

The report assesses the current state of climate target-setting among the world's largest financial institutions, arguing that portfolio-level net zero targets are insufficient for achieving 1.5°C. It highlights that 'universal owners'—large asset managers with global exposure—possess significant but underutilized leverage to influence the real economy. The document identifies three primary channels for influence: exclusion, divestment, and engagement, noting that current adoption of climate-relevant exclusion and divestment policies remains low among the top 50 asset managers and owners.

The analysis finds that a vast majority of non-state entities fail to meet the minimum criteria for net zero targets established by the UN HLEG. While the number of pledges from cities, regions, and companies has increased over the past year, many remain as mere aspirations without detailed transition plans, interim targets, or transparent reporting mechanisms. Specifically, only a minority of companies include full value chain emissions (Scope 3) in their targets, and over half of cities with net zero pledges lack any reporting mechanism to track progress.

One year after COP26, GFANZ has expanded to over 150 trillion USD in assets but faces criticism for uneven progress across its sectoral alliances and a weakened link to the Race to Zero campaign. The author contends that the alliance's reliance on voluntary carbon markets and vague targets—such as those from Vanguard and BMO Global Asset Manager—undermines its goals, urging leadership to 'name and shame' members who fail to align their portfolios with net zero emissions.

The report finds that the world's largest private companies significantly lag behind their publicly-listed counterparts in setting and implementing net zero targets, despite representing a substantial portion of the global economy.

The report finds that the world's largest private companies significantly lag behind their publicly-listed counterparts in setting net zero targets and publishing implementation plans. While 69% of the top 100 public companies have net zero targets, only 32% of the top 100 private companies do. Furthermore, only 13% of private companies with targets have published a plan to achieve them, compared to 73% of public companies. The analysis highlights a 'blind spot' in climate accountability, particularly in high-emitting sectors like fossil fuels, where none of the investigated private firms have pledged net zero. The authors warn of 'fossil-spinning,' where public companies divest carbon-intensive assets to less-regulated private firms, and call for mandatory climate disclosure for large private entities to ensure whole-economy decarbonisation.

The report identifies a 'carbon-pricing certainty gap' that inhibits private investment in Canada's industrial decarbonization. It proposes three primary recommendations: introducing carbon contracts for difference (CCfDs) to guarantee the carbon-price schedule, preventing carbon-credit oversupply through strengthened federal benchmarks and public registries, and offering policy-contingent loans via the Canada Infrastructure Bank. The authors suggest that a successful CCfD program could accelerate up to 40 Mt of emissions reductions by 2030 with limited contingent liabilities for the government.

The report finds that public financial institutions are lagging behind private counterparts in setting credible climate targets. While some Multilateral Development Banks (MDBs) show leadership, national and subnational development banks, as well as institutions in non-OECD countries, have very few Paris-aligned or net-zero commitments. Key barriers include a lack of government guidance and insufficient accountability mechanisms within global coalitions.

The methodology brief describes a framework for tracking public financial institutions' climate commitments, categorizing them into targets and pledges (such as Paris-aligned, net zero, and exclusion policies) and institutional strategies. It details a data collection process involving automated scraping of institutional websites, news articles, and the analysis of over 120 sustainability and annual reports for 70 entities representing USD 20.4 trillion in assets.

The document calls for the immediate phase-out of the U.S. federal coal leasing program, citing a 2021 study stating that 90% of global coal reserves must remain unextracted by 2050 to meet a 1.5°C climate target. It highlights two recent court victories: one re-imposing a moratorium on new coal leasing on federal lands until a comprehensive environmental analysis is completed, and another striking down resource management plans for the Powder River Basin. The author asserts that the Biden administration must now address the harm from existing leases, noting that as of 2021, the Bureau of Land Management administered 299 federal coal leases across approximately 458,600 acres.

The report highlights a disparity in G20 funding, with USD 470 billion committed to fossil fuels since 2020 compared to USD 424 billion for clean energy. While some G20 nations show strength in corporate access to renewables and policy frameworks, their overall renewable energy ambitions and net zero targets are described as lagging.