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Download the South Pole report 'How should the private sector step up climate action?' now to read more about how the private sector can and should play a key role in accelerating global decarbonisation efforts.
A position paper prepared by South Pole
In the void created by government inaction on climate change, urgent leadership and action by the private sector is imperative to keep global warming from overshooting the 1.5°C climate target of the Paris Agreement.
The private sector should play a key role in accelerating global decarbonisation through setting science-based targets to reduce emissions within their operations and value chains, and compensating for their residual emissions through buying carbon credits. This compensation is critical in catalysing faster climate action: it puts a price on carbon, it attracts funding to eligible and deserving projects, it allows companies to do something (rather than nothing) on their way to net zero, and in the meantime it develops and supports solutions that will dramatically reduce emissions today.
We need to stop fighting over the question of whether internal carbon reduction or compensation is better. If we want to stand any chance to get to net zero by 2050, it is not 'either, or', but 'both, and'.
No, not when companies are setting science-based targets and roadmaps to decarbonise their operations and value chains, and use carbon credits to compensate for residual emissions on their way to net zero.
Using the voluntary carbon markets to funnel financing to projects around the world that lower GHG emissions, certified under the highest quality carbon standards, ensures that these carbon credits drive faster climate action. It is an efficient, cost-effective and transparent way to catalyse global decarbonisation. It is also just one among many tools in the climate toolbox: it is an effective strategy and a robust solution that allows companies to act today, while more climate-friendly technologies are being developed to help them decarbonise as well.
Download the South Pole report 'How should the private sector step up climate action?' now to read more about how the private sector can and should play a key role in accelerating global decarbonisation efforts.