Released in April 2022, Working Group III of the IPCC Sixth Assessment Report focuses on climate change mitigation. For information on ‘The Physical Science Basis’ and ‘Impacts, Adaptation, and Vulnerability, explore our previous articles in this series.

Where are we at currently?

Despite global targets to reduce emissions, limiting global warming to 2°C will require rapid acceleration of mitigation efforts after 2030. Since the previous Working Group III report in 2014, there has been a much-needed expansion of policies and laws addressing climate change mitigation. As a result, fewer emissions have been emitted than would have been, while investment in low GHG technologies and infrastructure has increased. However, problems with equal distribution and insufficient financing remain.

Industry system transformations to limit global warming

System transformations will need to take place to keep global warming within target levels. For example, transitioning to very low or zero-carbon energy sources, measures that encourage ‘green’ consumer choices, improving efficiency, reducing non-CO2 emissions, and deploying carbon dioxide removal (CDR) methods.

Key transitions in the energy sector include a substantial reduction in fossil fuel use, the deployment of low-emission energy sources, switching to alternative energy carriers, plus energy efficiency and conservation. It is emphasised that the continued installation of unabated fossil fuel infrastructure hinders progress by introducing additional future GHG emissions. Similarly, reaching net zero in the industrial sector is acknowledged as challenging, but achievable. Working Group III urges the need for coordinated action throughout value chains to promote all mitigation options.

***‘The continued installation of unabated fossil fuel infrastructure hinders progress by introducing additional future GHG emissions.’***

Urban areas present more mitigation opportunities. Cities can achieve net zero if emissions are reduced both within administrative boundaries and externally through supply chains. Effectively implemented policy packages and the removal of barriers to decarbonisation could mean that existing buildings, if retrofitted, and buildings yet to be built, can approach net zero GHG emissions by 2050. Agriculture, Forestry and Other Land Use (AFOLU) mitigation options can deliver large-scale GHG emissions reductions and enhanced removals, while at the same time reducing risk and providing co-benefits like conservation. However, this cannot fully compensate for delayed action in other sectors.

Looking forwards

Working Group III found that low GHG emissions technologies and programmes that encourage changes in consumer behaviour can reduce or limit transport emissions, while providing co-benefits, such as air quality improvements and reduced congestion. Climate change actions can also result in some trade-offs; however, it is reported that coordinated cross-sectoral policies and planning can maximise synergies and avoid or reduce trade-offs between mitigation and adaptation. The report notes a strong connection between sustainable development, vulnerability, and climate risks. As such, it is reported that accelerated and equitable climate action in mitigating, and adapting to, climate change impacts is critical to sustainable development.

**‘Low GHG emissions technologies and programmes that encourage changes in consumer behaviour can reduce or limit transport emissions, while providing co-benefits’**

Some mitigation options are reported to be feasible to deploy at scale in the near term and mitigation steps included within the wider development context be taken now to accelerate mitigation and transformation across systems. However, barriers to feasibility need to be reduced or removed, and enabling conditions strengthened. Also, current tracked financial flows fall short of those needed to achieve mitigation goals. However, scaling up mitigation financial flows can be supported by clear policy choices and signals from governments, plus the international community.

Impact on Businesses

Working Group III report that Global GDP will continue to grow with mitigation efforts to keep warming within target levels. It also predicts there will be added economic benefits from avoiding climate-related damages. The impact of climate risks on businesses is predicted to worsen as global temperatures rise. Adaptation is important, but not a solution; as Working Group II made clear, adaptation measures become less effective and more costly as climate change worsens. Climate mitigation on the other hand can slow the warming that is causing the issue in the first place. Fortunately, it is estimated that the global economic benefits of limiting warming to 2°C will exceed the cost of mitigation, albeit in the long term.

For businesses, mitigation measures might include switching to low carbon energy sources, reducing emissions, and supporting CO2 removal. Mitigation strategies have benefits for businesses too, such as lower future costs, staying ahead of tightening regulations, and reducing vulnerability to risks. The IPCC Sixth Report makes clear that the economic benefits of adaptation and mitigation are vast, and that to not act equates to self-sabotage.

How we can help

Orbis Advisory work across a broad range of sectors to develop and support ESG strategies to meet investor demands, prepare for upcoming legislative changes, and create tangible benefits both now and in the future. Please see our website to explore our full range of services. For any inquiries, send an email to info@orbisadvisory.com or fill out an online enquiry form.

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