NET ZERO IN THE ECONOMY
Wind turbine in Entlebuch
Photo: Adobe Stock
Net zero means transforming our society in such a way that hardly any greenhouse gases are emitted – either directly (in our own country/company) or indirectly (abroad/outside the company). To achieve this, technologies and production methods in all sectors of the economy must become more efficient. In addition, fossil fuels must be replaced by renewable energies and alternative fuels. Residual emissions that are difficult to avoid must be offset by removing CO₂ from the atmosphere using various methods (carbon dioxide removal, CDR).
The structural change required to achieve this demands high levels of investment and poses a major economic challenge – but at the same time it represents an opportunity for innovative companies to take a leading market position and avoid future costs resulting from climate-related damage.
WHAT ARE THE BASIC PRINCIPLES FOR ACHIEVING NET-ZERO TARGETS?
- Energy transition: All economic sectors use CO₂-neutral or low-emission renewable energy such as wind and solar energy, hydropower and geothermal energy in the long term.
- The efficiency of infrastructure such as buildings and machinery is continuously improved – for example, through the electrification of processes and economical electricity consumption.
- Products are designed to be sustainable throughout their entire life cycle so that they can be produced and operated with low emissions and recycled as much as possible (‘eco-design’).
- Electric mobility and alternative fuels are used in freight and passenger transport.
- Detailed emission reduction targets (reduction pathways) for all economic sectors and industries are defined and implemented.
NECESSARY SOCIAL AND POLITICAL MEASURES
- Renewable energies and stricter emission standards for plants, machinery and vehicles are promoted.
- Subsidies encourage investment in structural change and innovative technologies (e.g., Swiss Climate and Innovation Act, KlG).
- CO₂ taxes and emissions trading make fossil fuels more expensive and accelerate the switch to renewable energies.
ADDITIONAL BENEFITS FOR SOCIETY
- Opportunities for innovation and sustainable economic growth open up, helping to assure the future.
- Companies that invest in sustainable technologies early on can better position themselves in the market and attract new customers.
- New business models (e.g., sharing economy, CO₂ capture) create new ‘green jobs’.
HOW CAN YOU CONTRIBUTE?
- Purchase climate-friendly products and support companies that promote net zero.
- Invest in companies that are reducing their emissions and encourage your pension fund to do the same.
- Get involved in the change: promote dialogue between politics, research and society, and vote in a climate-friendly way.
GLOBAL GREENHOUSE GAS EMISSIONS BY ECONOMIC SECTOR
There is a significant imbalance between the amount of greenhouse gases emitted by the global economy (left) and the amount absorbed by nature (right). As a result, greenhouse gases accumulate in the atmosphere (centre). We therefore need to reduce emissions (left), strengthen nature and use technology to remove more CO₂ from the atmosphere (right).
data: IPCC AR6, WGIII (2022; modif.)
UNITED NATIONS (UN) SUSTAINABLE DEVELOPMENT GOALS (SDG)
The 17 goals set by the UN in 2016 cover a wide range of topics, from poverty reduction and sustainable economy to climate action.
Photo: United Nations
EUROPEAN GREEN DEAL
The EU Climate Law sets out to make Europe the first climate-neutral continent by 2050. This is to be achieved through sustainable growth, resource conservation and support for the economy and society in overcoming the challenges.
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CLIMATE AND INNOVATION ACT (KlG)
On 18 June 2023, Swiss voters approved the Federal Act on Climate Protection Targets, Innovation and Strengthening Energy Security. It includes sector-specific reduction targets, the net-zero target and financial support for innovative companies and private households.
Photo: Streetlife (modif.)
SCIENCE BASED TARGETS INITIATIVE (SBTi)
SBTi is an organisation for corporate climate protection. Participating companies set emission reduction targets (reduction pathways), whose strategy is reviewed and certified according to strict criteria.
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GREENHOUSE GAS PROTOCOL (GHG PROTOCOL)
The GHG Protocol establishes comprehensive, global standards for measuring and managing greenhouse gas emissions in business and public administration. It allows emissions to be calculated along value chains in order to identify processes and products that are particularly harmful to the climate.
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