Corporations that commit to a race to zero should also advocate effective carbon pricing without which green technologies cannot become viable and dominant in most parts of the world. Unless market signals incorporate the full costs of carbon corporations cannot succeed with decarbonization. They would go bankrupt unless of course the goal setting is just a tactical move ! In the energy sector, for example, subsidies for fossil fuels are aboout $5 trillion per year according to IMF. Total investment in renewables is about $350 billion per year. Surprise, surprise, renewables account for only 5% of primary energy today despite a decade of cheerleading. This mismatch shows that policy frameworks are not aligned to support the transition and goal setting in the absence of effective carbon pricing is fighting windmills! Green steel and cement could already be competitive if the carbon price were $150 per ton. Cheerleading alone won’t help. We need effective carbon pricing !
S. Georg Kell : Chairman of the Board at Arabesque, Founding Director of the United Nations Global Compact.