Defining and scaling climate solutions: a framework for a sustainable future

"Climate solution" might sound like another appealing marketing term designed to attract attention. Instead, it’s a critical driver of transformation. To phase out fossil-dependent systems climate solutions must scale exponentially. Focusing on climate solutions will not only advance progress toward net zero emissions but also ensures a transition that promotes economic resilience.?

To increase the focus on climate solutions, Exponential Roadmap Initiative, in collaboration with Oxford Net Zero, has developed a framework for defining climate solutions at the product, service, and company levels. This framework provides clear and actionable criteria, enabling customers, investors, and governments to direct resources to the right solutions while ensuring that "climate solutions" remains robust and resistant to greenwashing claims.

So why do we need climate solutions?

To meet the Carbon Law—halving global emissions by 2030, halving again by 2040, and reaching net zero by 2050—we must accelerate the scaling of low carbon solutions that replace carbon intensive ones.?

While many of the required technologies already exist, inadequate standards, uncertainties around financing and misaligned policies stand in the way of deployment at scale. The Climate Solutions Framework provides science-based criteria for defining and qualifying these solutions. This helps ensure robust usage of the “climate solutions” label while encouraging and rewarding the growth of innovations that drive the systemic shift to a clean economy. It also supports financial institutions in rapidly shifting investments away from carbon-intensive and towards low carbon products.

Supporting Climate Solutions Through Exemptions

Another reason for defining and identifying these products, services and companies is to provide them with exemptions from aspects of existing frameworks. Current accountability frameworks? for company pledges, progress reporting, and emissions reductions (e.g., GHG accounting, 1.5°C-aligned targets) often fail to account for the fact that climate solutions companies must be allowed to grow. If scaling a particular company or product can lead to an overall reduction in societal emissions, these entities should be supported, even if their short-term emissions increase. This altruistic perspective underscores the need for climate solutions to be treated differently under accountability frameworks. For startups, this recognition can attract critical funding. For established companies, it drives the transformation of product portfolios.

What defines a climate solution?

A climate solution is defined as a product or service that contributes to global emissions reductions by producing significantly fewer emissions than current market options.

To qualify as a climate solution, a product or service must meet one of the two following criteria:

1. Have a carbon footprint at least 50% lower than the relevant market-weighted average for the products/services being replaced.
2. Fulfil a credible intensity threshold for a net-zero world, as set out in a robust taxonomy or other science-based framework.

Climate solutions must also avoid harm to water resources, biodiversity, and ecosystems and not contribute to extending the life of fossil fuel technologies.

As mainstream services and products improve, the climate solutions thresholds will evolve dynamically, ensuring continuous improvement. For example, an electric vehicle that qualified? as a climate solution today may need to be made from near-zero? steel within a decade to maintain its qualification.?

Climate Solutions Companies

Companies qualify as climate solutions companies by meeting three criteria:

1. At least 90% of revenue is derived from climate solutions.
2. Public interim and net-zero targets covering all emissions (scopes 1, 2, and 3) and a transition plan.
3. Demonstrated commitment to transforming its sector.

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Exponential Roadmap Initiative uses the Climate Solutions Framework to identify which companies qualify as climate solutions companies.

Does your company offer solutions that meet these criteria? Find out how your offerings could qualify and learn how to transform your portfolio by downloading our open-access Climate Solutions Framework today!