Strategic Intelligence: The State of Global Carbon

Strategic Intelligence: The State of Global Carbon

Summary

Global carbon emissions have been growing since the Industrial Revolution. Despite net-zero commitments such as the Paris Climate Agreement, the world is not on track to meet its emissions-reduction targets. The burning of fossil fuels for heat, energy, and transportation makes up the bulk of carbon emissions. New sources of emissions, such as data centers, are adding to the problem. Without swift intervention and a commitment to no new long-term oil and gas projects, emissions will continue to grow, ultimately leading to a collapse of marine and terrestrial ecosystems.

Key Highlights

• Regulators worldwide are trying to keep countries and companies accountable for carbon emissions. Global reporting standards like the International Sustainability Standards Board (ISSB) and Corporate Sustainability Reporting Directive (CSRD) require companies to disclose environmental data, including carbon emissions. The EU is at the forefront of introducing environmental regulations; however, constant rollbacks have stalled emissions-reduction efforts.
• Carbon markets can involve carbon credits, offsets, carbon taxes, and emissions trading systems (ETSs). Governments worldwide are introducing ETSs and carbon taxes that involve cap-and-trade policies. Carbon taxes encourage emissions reductions and favor those companies that lower their emissions. Carbon credits have faced public antipathy, but companies will rely on high-quality offsets to meet net-zero targets.

Scope

• This report analyzes the current state of the global carbon market. It includes data on global carbon emissions and looks at approaches to carbon regulation. It identifies technologies that can be used to reduce and remove carbon emissions and provides a regional breakdown of approaches to emissions reduction.

Reasons to Buy

• Carbon dioxide emissions from human activities like burning fossil fuels and land use have been increasing since the Industrial Revolution. Estimates suggest that global carbon dioxide emissions in 2022 were more than 182 times higher than in 1850. This is the main contributor to climate change, which is negatively impacting the environment, people, and businesses. This report examines the issues surrounding carbon emissions and evaluates strategies to address them.