Carbon news roundup for August 2024
New CSRD FAQs released, fossil fuel imports reduced, and SBTi targets Oil & Gas sector.
Our monthly carbon news roundup summarizes the latest updates in sustainability legislation, net-zero news, and decarbonization success stories – and explains what they mean for your business.
SBTi Enters drafting phase for oil and gas standard, following extensive research and stakeholder input
The Science Based Targets initiative (SBTi) has launched a comprehensive project to guide the oil and gas (O&G) industry towards significant emissions reductions. This move addresses the sector’s substantial contribution to global CO2 and methane emissions, which account for 85% of CO2 emissions worldwide.
The SBTi’s Oil and Gas Standard development project aims to create science-based methodologies for target-setting, helping O&G companies align with the 1.5 °C Paris Agreement goal. The initiative emphasizes that “the sector must radically transform” to avoid catastrophic climate breakdown.
SBTi’s efforts focus on reducing emissions from fossil fuel production, cutting fossil fuel consumption, and encouraging financial institutions to transition away from fossil fuel activities.
What does this mean for my business?
If your business operates within or interacts with the O&G sector, you should anticipate more stringent emissions reduction targets and increased pressure to align with science-based climate goals. This may require reassessing your current practices and investing in decarbonization strategies.
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European Commission Releases FAQs on Corporate Sustainability Reporting Directive
The European Commission has published a set of Frequently Asked Questions (FAQs) to support companies and auditors in implementing the EU’s Corporate Sustainability Reporting Directive (CSRD). Released on August 7, 2024, these FAQs aim to clarify regulatory requirements, reduce administrative burdens, and ensure compliance with the new sustainability reporting standards.
The comprehensive FAQs cover a wide range of topics related to sustainability reporting requirements, including assurance of sustainability reporting and specific guidelines for various entities such as financial institutions, SMEs, and pension funds. They also address technical aspects like language requirements, reporting formatting, and exemption rules.
Notably, the FAQs provide clarity on the connection between the CSRD and the Sustainable Finance Disclosure Regulation (SFRD), offering practical guidance for companies to meet the evolving disclosure requirements effectively.
What does this mean for my business?
If your company falls under the CSRD’s scope, these FAQs provide valuable insights to help you navigate the new reporting landscape. You should review these guidelines to ensure your sustainability reporting practices align with the latest EU standards and to identify any areas where you may need to adjust your approach to compliance.
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EU Reveals 18% gas reduction and 46% renewable energy in REPowerEU success story
The European Union has made substantial strides in reshaping its energy landscape, dramatically reducing its reliance on Russian fossil fuels. Gas imports from Russia have plummeted from 45% in 2021 to just 15% in 2024, marking a significant shift in the EU’s energy sourcing strategy.
This transformation is largely attributed to the REPower EU plan, which has catalyzed unprecedented growth in renewable energy. In a historic milestone, Europe now generates more electricity from wind and solar combined than from gas.
To support these ambitious energy transitions, the European Commission has mobilized nearly €300 billion. This massive investment underscores the EU’s commitment to achieving a more sustainable, secure, and independent energy future.
What does this mean for my business?
This energy transition presents a dual opportunity for businesses. Firstly, the reduced dependence on volatile fossil fuel markets could lead to more stable and potentially lower energy costs. Secondly, the boom in renewable energy development opens up significant opportunities for companies involved in green technologies such as solar and wind power. Additionally, European companies now have enhanced potential to reduce their scope 2 emissions, aligning with increasingly stringent sustainability requirements.
That’s it for August 2024! Stay tuned for next month’s roundup.
