The IPCC has published the third part of its Sixth Assessment Report on Climate Change, focusing on mitigation. The report follows the second part of the report published in February this year which focused on impacts, adaptation and vulnerability.
The conclusions reached by IPCC’s Working Group III, who put together the report, outline the need to significantly reduce emissions by 2030 and the broad measures to do so. In particular, the report highlights the requirement for major transitions in the energy sector, which involves a substantial reduction in fossil fuel use, widespread electrification, improved energy efficiency and the use of alternative fuels.
The report does find that climate action is having a positive effect, but that the pace of change needs to accelerate, with the next few years critical. Specifically, the report states that limiting warming to around 1.5°C requires global greenhouse gas emissions to peak before 2025 at the latest, and be reduced by 43% by 2030.
In response, Stephanie Pfeifer, CEO, IIGCC, said: “Today’s IPCC report is a powerful reminder not just to investors, but governments, companies and civil society of the role they all must play in facilitating emissions reductions at scale if global warming is to be limited to 1.5°C. While the rallying cry is as loud and necessary as ever, the IPCC’s report does highlight that climate action is already delivering some positive results, noting that in many countries that there are policies, regulations and market instruments that are proving effective.”
“For investors, by highlighting the need to reduce emissions in industry, particularly those on the demand side in energy intensive sectors such as steel, cement and aviation, the IPCC report makes clear the fundamental and valuable role investors must play in helping companies in such sectors towards decarbonisation. As ever, and as set out by Climate Action 100+’s global sector strategies, this starts though effective and meaningful corporate engagement to ensure companies develop and implement credible net zero transition plans. This must be the absolute base for companies and investors globally.”
“The report is unequivocal in the need for scaling up climate solution technologies, including renewables. The investment gap between what is currently being allocated to such technologies and where it needs to be, must be cut rapidly; failure to do so threatens to undermine all mitigation efforts. While investors alone cannot solve this problem, working with policy makers, regulators, industry and more, they have the leading role in ensuring the current investment gap becomes a thing of the past.”