1.5 degrees still possible?
Governments must act, but what does that mean for SMEs?
The world is failing to meet their goal for limiting climate change to 1.5 degrees as it was set in the paris agreement. If this is still realistic has been controversial since we are currently approaching a rise in temperature of 2.8 degrees by the end of the century.
So, do we still stand a chance?
Fact is, that technically it is still possible, though, a cut by nearly half of what we are heading towards seems very ambitious and almost unattainable considering the effort most governments put into fighting climate change nowadays. This years’ Emissions Gap Report by the UN Environment Programme addresses the transformation we must undergo if we do want to reach this goal and presents the three most important actions to be taken.
Avoid lock in
What this means is that we must stop investing in things that will cause more emissions and bind us to outdated polluting technologies for several years. Rather we should make decisions now to redirect investments towards green technologies and solutions that we will benefit from in the long run. For example, SMEs should therefore focus investment decisions on their impact in the long run instead of committing themselves to another 10 years of extensively heating a way too big factory.
Initiate zero-carbon technological advancements
The transition shouldn’t be too sudden. Carbon neutral technologies should be introduced gradually while slowly turning away from carbon centralized industries, giving the economy time to adjust to its needs. The same is true for SMEs as they should evolve over time to reduce emissions – no one will expect this to happen over night.
Sustain deep reductions
For companies or industries that are ahead in limiting their emissions and engaging in low emission technologies, this progress must be sustained and expanded further. This is not a temporary decision. Firms must be able to hold their level of sustainability because there is no turning back.
So clearly, limiting and preventing future emissions is the main objective here. And this is where carbon accounting plays an essential role to set measurable goals for the future.