The latest edition of our Sustainable Views newsletter
Dear reader,
Transport is a net zero headache. As we reported yesterday, transport is the sector where there is the biggest policy gap between the UK’s net zero plans and reality, according to an analysis by Green Alliance. Today, non-profit Transport and Environment describes transport as the “problem child” of Europe’s climate efforts — since 2007, the sector has decarbonised three times slower than the rest of the economy.
By 2030, transport will make up nearly half of Europe’s greenhouse gas, says T&E. Petrol and diesel cars are the biggest source of these emissions, but aviation emissions continue to grow and decarbonising ships remains complicated. Changing this dynamic will require ambitious policies, says the non-profit, advocating a halt to expanding airport and motorway capacity, changes to tax laws for company cars, and binding electric vehicle sales targets for companies with large vehicle fleets. It will also require investment, in particular to boost greener alternatives for shipping and aviation fuels.
The problem is also that transport has become highly politicised. People may not want wind turbines in their backyard, but ultimately the majority don’t care where their power comes from as long as the lights stay on. However, people care deeply about how they get around. Efforts to reduce car use, increase cycle lanes and slow the speed of traffic in cities are often met with opposition, whipped up by certain politicians using the fossil fuel-powered car as the ultimate symbol of modern freedom, not to be taken away whatever the costs.
And the costs of allowing transport emissions to increase are huge, as the World Meteorological Organization spelt out in its latest “State of the global climate” report published on Tuesday. “The climate crisis is the defining challenge that humanity faces,” said the body’s secretary-general, Celeste Saulo. “[In 2023], heatwaves, floods, droughts, wildfires and intense tropical cyclones wreaked havoc on every continent and caused huge socioeconomic losses.”
In California today, (which incidentally is also struggling with increasing transport emissions, notably from passenger vehicles), the state senate will hear a controversial bill introduced by senator Monique Limón aimed at regulating the selling and marketing of carbon offsets. Alex has all the details about how the bill could have wider ramifications for the voluntary carbon market, potentially threatening legal trouble for participants even beyond the state. While some are firmly opposed to the bill, describing it as overly prescriptive, others welcome the move to try to help enforce the accuracy of carbon offset credits.
While questions are frequently posed about the integrity of some credits in the VCM, a survey of business leaders by the We Mean Business Coalition, data firm Intercontinental Exchange, and consultancy Bain & Company, concludes net zero standard-setting bodies such as the Science Based Targets initiative should recognise carbon credits as a viable route to net zero.
The passive funds of five of the biggest asset managers in the US and Europe are also in the news for potential greenwashing. Campaign group Reclaim Finance is accusing BlackRock, Legal & General Investment Management, Amundi, DWS and UBS Asset Management of making sustainability claims about portfolios heavily invested in funds exposed to companies developing new fossil fuel projects, such as Shell and ExxonMobil.
Finally, clean energy innovation is partly behind a surge in applications to the European Patent Office, and a UK government-commissioned report on financing natural flood management shows measures should be taken to encourage more investment from the private sector.
Until tomorrow,
Philippa
Philippa Nuttall is the editor of Sustainable Views