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The Patchy Road Towards Net-Zero

The Patchy Road Towards Net-Zero

https://islamicmarkets.com/articles/the-patchy-road-towards-net-zero
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It is more complex than it first appears to tell whether a financial institution is aligned with a long-term emissions trajectory consistent with Net Zero. Financed emissions are important, but using institution-level data (where available) as a target without considering the economy as a whole could lead to ‘paper decarbonisation’ that results in the broader economy falling out of alignment unless targets are set considering the full-economy view.

Last month, Finance Watch published a report questioning whether reaching Net Zero goals was possible by just focusing on financed emissions. Their critique centered around the use of Net Zero to justify new fossil fuel investment, with the seeming contradiction between those goals and scen...