The global transition to a low-carbon economy is entering a ‘more mature, complex and economically driven phase’, a new report from the Taskforce on Net Zero Policy, published at COP31, has suggested.
According to the report, Policy Matters: Charting a Path to Net Zero, which was produced in association with the University of Oxford, climate ambition has risen across almost all G20 countries since 2023, however policy implementation has been ‘uneven’.
‘Reaffirm commitments’
“This is a moment to reaffirm commitments and accelerate action, not give in to disillusionment,” commented Sanda Ojiambo, assistant secretary-general, CEO and executive director of the United Nations Global Compact.
“The transition has never been linear, and periods of uncertainty should not distract from the progress that has already been made or the direction of travel ahead.”
As the report notes, growth in policy stringency has slowed, and even ‘partially reversed’ in some instances, amid geopolitical uncertainty, competitiveness issues, and implementation challenges.
This, the report suggests, means that the transition is entering a ‘different phase’, where climate policy is integrated into economic policy, and governments are developing regulatory measures that respond to competitiveness, energy independence, financial stability and resilience.
The result is a transition that is increasingly embedded in economic decision-making, but also ‘more fragmented and disorderly’, the report notes.
“Across business, finance and government, there is growing recognition that sustainability is integral to business strategy and supports resilience, competitiveness and long-term growth,” Ojiambo added. “Credible transition plans turn commitments into practical solutions, investment and measurable progress in support of the Paris Agreement.
“Policy plays a decisive role: transparency, policy certainty and collaboration across sectors can accelerate the transition to a just, resilient, net zero future. Sustained leadership, shared accountability and collective action are essential to keeping the transition on track.”
Relevant information
Noting that more than 40 jurisdictions worldwide have adopted or are adopting the International Sustainability Standards Board’s (ISSB’s) climate-related disclosure standards, the report calls for a shift from transparency to information that helps investors and regulators better assess companies’ environmental commitments and transition plans.
The report also calls on policymakers and regulators to strengthen supervision and enforcement, improve coordination between disclosure, transition planning and prudential policies, and increase international cooperation.
“Climate policy is increasingly economic policy,” added Helena Vines Fiestas, co-chair of the Taskforce on Net Zero Policy. “Countries may be approaching the transition through different combinations of regulation, industrial strategy, energy security and financial policy, but they are responding to the same underlying pressures.
“The next phase must therefore be about delivery. Disclosure and target-setting have established important foundations, but transparency alone will not reallocate capital or reduce emissions. Policy must now connect reported information with credible transition plans, investment decisions, supervision and accountability.” Read more here.
