Purpose of Review
Companies increasingly set science-based targets (SBTs) for reducing greenhouse gas emissions. We review literature on SBTs to understand their potential for aligning corporate emissions with the temperature goal of the Paris Agreement.
Recent Findings
SBT adoption by larger, more visible companies in high-income countries has accelerated. These companies tend to have a good prior reputation for managing climate impacts and most appear on track for meeting their scope 1 and 2 SBTs. More research is needed to distinguish between substantive and symbolic target-setting and understand how companies plan to achieve established SBTs. There is no consensus on whether current target-setting methods appropriately allocate emissions to individual companies or how much freedom companies should have in setting SBTs. Current emission accounting practices, target-setting methods, SBT governance, and insufficient transparency may allow companies to report some emission reductions that are not real and may result in insufficient collective emission reductions. Lower rates of SBT diffusion in low- and middle-income countries, in certain emission-intensive sectors, and by small- and medium-sized enterprises pose potential barriers for mainstreaming SBTs. While voluntary SBTs cannot substitute for more ambitious climate policy, it is unclear whether they delay or encourage policy needed for Paris alignment.
Summary
We find evidence that SBT adoption corresponds to increased climate action. However, there is a need for further research from a diversity of approaches to better understand how SBTs may facilitate or hinder a just transition to low-carbon societies.
This paper contributes to academic and policy debates about climate leadership by illustrating an approach to examining national emission reduction targets focusing on Denmark. Widely recognized as a climate leader, Denmark is cherished for both its historical track record and its current climate targets. With a target of 70% emissions reduction by 2030 compared to 1990 stipulated in national law, central actors in Danish policymaking claim that domestic climate policy is aligned with the Paris temperature goals and present Denmark as a ‘green frontrunner.’ We examine the pledges and targets enshrined in the Danish Climate Act in reference to a 1.5 °C global greenhouse gas budget using five different approaches to burden sharing. For all five approaches, we find that the Danish climate target is inadequate given the 1.5 °C goal. Moreover, when only looking at equity approaches for distributive climate justice globally, the Danish target appears drastically insufficient. Denmark is, in this sense, not a green frontrunner but rather an indebted culprit, challenging the dominant narrative in Danish climate policy. Our results thus call into question the premise of the claim of Danish climate leadership, which works to legitimize existing policy and obscure the many dimensions of climate change.
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