The Business & Climate Monthly Newsletter (September 2024)

Our round up of this month's HOT NEWS on business, sustainability, carbon and climate over the last month

This September was marked by some key, but paradoxical movements for climate action. Positive developments this month include the United Nations adopting the transformative Pact for the Future, and Britain's mobilisation for COP29, including closing its last coal-fired power station. On the other hand, we've seen more examples of our impact on Earth: catastrophic disruption of planetary boundaries, devastating forest fires in the Amazon, and lethal floods in Central Europe. Meanwhile, data-hungry centres dishonestly report their emissions, and fossil fuel companies use "sportswashing" to further normalise their industry by brand association. Stay informed on this busy September...?

1. The United Nations Pact for the Future

The UN recently adopted the Pact for the Future, which includes initiatives like the Global Digital Compact and a Declaration on Future Generations. The pact is aimed at reinforcing the UN Sustainable Development Goals, while also supporting less economically-developed countries in achieving these goals. The pact also confirmed the need and the actions required to keep global temperature rise to 1.5°C above pre-industrial levels. However, with several countries including Russia and Iran opposed the pact openly, leading to concern about the support and commitment it will receive.?

2. Big Data centres concealing their emissions

Emissions from data centres owned by major tech firms like Google, Microsoft, and Amazon may be up to 662% higher than their official claims. Thanks to he use of Renewable Energy Certificates (RECs) companies can show they are buying renewable-energy-generated electricity, but they aren't necessarily using it. With the rapidly-growing AI energy demands, emission figures will only continue to grow, and whether this data will be reported accurately is the key question.?

3. Fossil fuel conglomerates and the dangers of sportswashing

Fossil fuel companies are spending $5.6 billion on active sports sponsorships to bolster their reputations through "sportswashing," associating with events in motorsports, football, and other popular sports. Companies like Saudi Aramco, Ineos, and Shell have been the biggest investors, despite criticism of their harmful environmental impacts. The tactic is being compared to the tobacco industry's previous methods of brand association with sports.

4. Extreme weather events?

Record-breaking wildfires burned across Brazil this month, fuelled by a combination of drought and human-driven deforestation. Experts are pointing to agricultural expansion and deforestation as major contributors, exacerbating an already severe fire season that threatens biodiversity and contributes to climate instability. The fires are also a warning of the delicate balance of the Amazon ecosystem.

?Meanwhile in Europe, Austria and Romania saw extreme flooding, resulting in at least 17 deaths, causing widespread displacement and damage. The floods, attributed to atmospheric pressures and climate change, highlight the increasing frequency of extreme weather events linked to global warming, further stressing the need for both adapted infrastructure, and climate action.

5. Catastrophic disruption to planetary boundaries

Moreover, scientists report that seven of nine planetary boundaries, which are critical to maintaining the Earth's stability, have likely been breached. Ocean acidification, climate change, and other factors threaten marine ecosystems and global sustainability. The research calls for urgent global cooperation to avoid further environmental degradation.

6. Climate Action in the UK

Over in the UK, the Labour government has secured 131 new clean energy projects, including solar, wind, and tidal energy, enough to power 11 million homes. This follows a significant increase in budget under Labour, marking a major step toward achieving net zero emissions by 2030. Amongst the most significant news from the UK was the closure of the UK’s last coal-fired power station.

Quote of the month

"We recognise that the planet’s health … is at such risk today that we in science must also now step up and step right out in to the uncomfortable zone and say that we are now committing ourselves to produce every year a scientific measuring of the entire health assessment – a risk assessment – across all the planetary boundaries... “This is much more than science, this is science for change.."

- Johan Rockstrom, Director, Potsdam Institute for Climate Impact Research (PIK) highlights the impact of human interference with planetary boundaries and the need for urgent action..?

Jargon busters

We're jargon busting to make sure climate impact is accessible and as simple as possible, one topic at a time.

What is the EU emissions trading system?

The EU Emissions Trading System or EU-ETS is a carbon market. What does this mean? It functions on the basis of a cap and trade system for energy intensive sectors (electricity and heat generation, industrial manufacturing, aviation and martime transport sectors). The cap is the amount of greenhouse gas (GHG) emissions which are in line keeping global warming below 1.5 °C below pre-industrial temperatures. This cap is expressed in "emission allowances", where 1 allowance gives the "right" to emit 1 tonne of carbon dioxide equivalent (CO2e). The cap decreases over time, and so do the number of allowances in the EU carbon market.?The EU ETS system functions so that companies can monitor and report their emissions and if they don't meet their requirements and targets, heavy fines are imposed.??

?What makes this a carbon "market" is that allowances are sold in auctions, companies receive some allowances for free, and can trade allowances among themselves. The price of these allowances is determined by the EU carbon market.? In the long term this means that as the cap decreases, companies should be aware that so will allowances, and the carbon price then effectively provides incentives for companies to reduce emissions.?

?This price also determines the revenue generated from the sale of allowances. Since 2013, the EU ETS has raised over EUR 175 billion. This revenue mainly flows to national budgets where it must be used to support renewable energy, low-carbon technologies, and overall towards reducing emissions. A share of the EU ETS revenue also goes towards low-carbon innovation via the EU Innovation Fund and to energy transition into the Modernisation Fund.?

?By 2023, the EU ETS has helped bring down emissions from European power and industry plants by approximately 47%, compared to 2005 levels. Read more here.?

ZeroBees News

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That's all for this month! Do let us know any feedback, topics you'd like us to cover or visit us at ZeroBees.com

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