As artificial intelligence transforms the global economy, researchers need to explore scenarios to assess how it can help, rather than harm, the climate. As artificial intelligence transforms the global economy, researchers need to explore scenarios to assess how it can help, rather than harm, the climate.
This guidance was developed by a WRI working group focused on nature-based solutions and markets and represents the Institute’s latest collective thinking on the voluntary use of NBS carbon credits. It updates an earlier commentary on corporate financing of nature-based solutions, drawing on a working paper on the same topic.
EXECUTIVE SUMMARY
Net-zero commitments are starting to receive signatories, with USD 5.7 trillion and USD 37 trillion assets signed up to the Net Zero Asset Owners Alliance and Net Zero Asset Managers initiative, respectively.
Even optimistic targets show the world falling short of a 1.5°C scenario (see Exhibit 1). Scientific consensus suggests a 1.5°C pathway would require net-zero emissions by 2050, while 2°C pathways are closer to 2070-2080.
Absolute greenhouse gas (GHG) reduction (tracking a specified scenario) is aligned with meeting these goals, while relative GHG reduction (reduction to an underlying index) is better but not necessarily aligned.
The S&P PACT™ Indices (S&P Paris-Aligned & Climate Transition Indices) are designed to give investors confidence in following absolute decarbonization pathways.