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Net-zero pledges have become commonplace among corporations, financial institutions and cities, but questions abound as to whether those companies and governments have real plans in place to achieve them. In many cases, corporations or local governments don’t yet know how they will achieve net-zero status by 2050.
The UAE is already proving a petro -state can transition toward netzero, says Luma Saqqaf, CEO of Ajyal Sustainability Consulting, but tough challenges remain. In March 2023, the UAE confirmed its netzero target as a domestic policy objective by signing the ‘ UAE Governments NetZero 2050 Charter ’.
C-aligned paths and policies compared with business as usual, as well as the risks and opportunities for different scenarios, according to Carney, also Co-chair for the Glasgow Finance Alliance for NetZero (GFANZ).
“The current lack of [standardisation] poses a significant cost to asset owners and limits their ability to incorporate these issues into investment decision-making,” says the UN-convened NetZero Asset Owner Alliance (NZAOA), a group of 74 institutional investors with US$10.6 trillion in assets. .
Governments are being called on to put some regulatory muscle behind corporatenet-zero pledges to ensure they don’t amount to mere greenwashing. . And there is too much money to be made to expect that the financial sector will voluntarily end its support for oil and gas companies. Photo by Collision Conf/Flickr.
This would better inform central banks, commercial banks and insurers and drive refined and more appropriate actions. While in some geographies there has been a backlash against environmental and social issues, we believe that such risks will continue to be tackled as they also constitute financial risks.
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