Climate change superstar Mark Carney set off a media flurry in a video interview with Bloomberg Live on February 10, in which he claimed that Brookfield Asset Management is a “net zero” company because its renewables investments offset emissions from its other holdings. Carney reflects a new trend of corporate aspirational statements, for example: Jeff Bezos’ corporate network The Climate Pledge claimed in February that 53 companies across 18 industries have committed to working toward net-zero carbon in their worldwide businesses, most by 2050. Recent high profile examples include Royal Dutch Shell , Canada’s TD Bank and Bank of Montreal, and FedEx , which on March 5 announced its goal to be carbon-neutral by 2040 as well as an initial investment of $2 billion to start electrifying its delivery fleet and $100 million to fund a new research centre for carbon capture at Yale University.
Will these corporate goals help to reach the Paris Agreement target? Many recent articles are skeptical, labelling them “sham”, “greenwash”, and “deception” which seeks to protect the status quo. Some examples:
“The climate crisis can’t be solved by carbon accounting tricks” (The Guardian, March 3) which offers a concise explanation of why “Disaster looms if big finance is allowed to game the carbon offsetting markets to achieve ‘net zero’ emissions.”
“Global oil companies have committed to ‘net zero’ emissions. It’s a sham” by Tzeporah Berman and Nathan Taft (The Guardian, March 3) – which instead advocates for an international Fossil Fuel Non-Proliferation Treaty.
“Call the Fossil Fuel Industry’s Net-Zero Bluff” by Kate Aronoff in New Republic. She writes: “This isn’t the old denialism oil companies funded decades ago. … Instead of casting doubt on whether the climate is changing, this new messaging strategy casts doubt on the obvious answer to what should be done about it: i.e., rapidly scaling down production….. For now, it’s one part creative accounting and many parts a P.R. strategy of waving around shiny objects like biofuels, hydrogen, and carbon capture and storage.”
“Can the market save the planet? FedEx is the latest brand-name firm to say it’s trying” in the Washington Post , which quotes Yale Professor Paul Sabin, warning that “carbon capture research also should not become an excuse for doubling down on fossil fuel consumption, or delaying urgently needed policies to move away from fossil fuel consumption, including the electrification of transportation.”
Chasing Carbon Unicorns: The Deception of Carbon Markets and Net Zero – a hard-hitting report by Friends of the Earth International which argues that net zero pledges are “a new addition to the strategy basket of these actors who are fighting hard to maintain the status quo.” The report names these actors, led by the financial community’s new Taskforce on Scaling Voluntary Carbon Markets (TSVCM) – established by Mark Carney and the led by the CEO of the Standard Chartered Bank, with a goal to develop standards for “credible offsets” . FOE International also names a
group of Oxford academics which is supporting the TSVCM work by developing the Oxford Principles for Net Zero Aligned Carbon Offsetting , and conservation agencies which have endorsed the work: Conservation International (CI), Environmental Defense Fund (EDF), The Nature Conservancy (TNC), and World Wildlife Fund (WWF).
Chasing Carbon Unicorns concludes:
“Net zero” is a smokescreen, a conveniently invented concept that is both dangerous and problematic because of how effectively it hides inaction. We have to unpack “net zero” strategies and pledges to see which are real and which are fake. Fake zero strategies rely on offsets, rather than real emission reductions. Real zero strategies require emissions to really go to zero, or as close to zero as possible.”