The Path to Net Zero
Transcript of The Path to Net Zero
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17th February 2021
The Path to Net ZeroThe role of Business in delivering UK Net Zero
Session chair: Rebecca Heaton (Climate Change Committee)
Presentations: Mike Thompson (Climate Change Committee secretariat)
Vivian Scott (Climate Change Committee secretariat)
Panellists: Tera Allas (McKinsey and Company)
Julie Baddeley (Chapter Zero)
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Agenda
1. Our recommended path to Net Zero
2. The role of business in delivering UK Net Zero
3. Panel comment
4. Q&A
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“a decisive transition”
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Our recommended pathThe recommended sixth carbon budget and 2030 NDC
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Emissions reductions on the path to Net Zero
Sectoral contributions
Source: CCC Analysis
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What changes will we see on the Balanced Pathway2019
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What changes will we see on the Balanced Pathway2025
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What changes will we see on the Balanced Pathway2030
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What changes will we see on the Balanced Pathway2035
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What changes will we see on the Balanced Pathway2050
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“a major nationwide investment programme”
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Investing for Net Zero
Major investment programme, delivering offsetting operating cost savings
Source: CCC analysis.
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Delivering Net Zero
Role of behavioural and societal change in meeting the Sixth Carbon Budget
Source: CCC Analysis
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Policies must provide a clear direction to millions of
people and businesses in the UK, shifting incentives to
favour low-carbon options and tackling barriers to
action.
The Policy Challenge
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The role of Business
“Actions by businesses in partnership with Government will be key to the successful delivery of the UK’s Net Zero target and the many important
nearer-term steps across all sectors underpinning the transition.”
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The role of Business in delivering the UK’s Net Zero
Ambition
This briefing provides UK businesses with the principles and
information they will need for the Net Zero transition:
1. Context for private sector Net Zero action.
2. Aligning corporate strategies with the UK’s path to Net
Zero – five principles.
3. Sectoral requirements of the Sixth Carbon Budget and
suggested actions for business.
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Intersection of Policy and Private Sector Action
The role of Government to provide requisite
conditions:
• Providing long-term visibility and certainty
• Breaking down market barriers as they evolve
• Creating a level playing field within the UK and
outside
• Encouraging investment in low-carbon options
• Supporting fairness and spreading the costs and
impact of the transition
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With the right frameworks and supporting policies,
the private sector has an essential role to play in
the Net Zero transition:
• Decarbonising operations
• Fostering innovation
• Leveraging procurement
• Manufacturing and production
• Nudging employees and customers to make
Net Zero decisions
• Building support for bold policy
• Setting international leadership
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Key Net Zero transition principles for business
1. Do the basics well – measure, disclose, target, act and adjust:
• Regular emissions measurement across scopes 1-3, public disclosure, setting and achieving phased emissions reductions.
• Disclose climate risk through Taskforce for Climate-related Financial Disclosure (TCFD) and measure, target and adjust for climate risk adaptation as well as mitigation.
2. Adopt the highest possible ambition:
• Strive for the earliest date to reach Net Zero emissions.
• If at all possible well ahead of the UK-wide 2050 target.
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Sixth Carbon Budget recommendations reflect principals relevant to business.
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Key Net Zero transition principles for business
3. Address all emissions including scope 3 – and go beyond:
• Consider and reduce all emissions across Scopes 1, 2 and 3.
• Look to go beyond scope 1-3 through actions that can impact wider systemic changes.
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Source: Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
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Key Net Zero transition principles for business
4. Ensure climate change is addressed at the highest levels of leadership:
• Make climate change a Board and CEO level responsibility.
• Ensure sufficient climate change knowledge and expertise at Board level.
• Update executive incentive schemes to incorporate climate targets.
• Disclose transition and physical risks associated with both mitigation and adaptation.
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Key Net Zero transition principles for business
5. Minimise the use of offsets:
• Reserve offsets for use only where no alternative available.
• Aim to progressively phase out offsets.
• Ensure offsets achieve additionally and support sustainable development.
• Transition to best available new approaches and standards.
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Sixth Carbon Budget aligned suggested offsets usage
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Sixth Carbon Budget sector requirements and
suggested actions
• Surface Transport• Buildings• Manufacturing and
construction• Electricity generation• Fuel supply• Agriculture and land use• Aviation• Shipping• Waste• F-gases• Greenhouse gas removals
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Sixth Carbon Budget briefings
www.theccc.org.uk/publication/sixth-carbon-budget/
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www.theccc.org.uk
@theCCCuk
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