An intro into the Journey towards Climate Neutrality

*image by JEREMY BISHOP

Europe wants to become climate-neutral by 2050!

So far so good, but why?

In order to counteract climate change and environmental pollution and limit global warming to 1.5 degrees, we must strive for global climate neutrality. This target has already been set in the EU Green Deal and has also been legally enshrined in the European Climate Law.

The 1.5 degree target was set in 2015 as part of the Paris Climate Agreement and acknowledged by almost all countries. The agreement is aimed at combating global climate change and minimising its negative effects, such as heavy rainfall, flooding and droughts. Climate neutrality plays an important role here.

What does climate neutrality actually mean?

The European Union describes climate neutrality as the state in which greenhouse gas emissions are reduced to zero as far as possible and the absorption of these from the atmosphere is offset by carbon sinks.

Carbon sinks are natural ​“reservoirs” that store carbon dioxide temporarily or permanently. The most important natural carbon sinks include forests, oceans and moors. Furthermore, switching to renewable energy sources, improving energy efficiency and introducing sustainable land use practices can help to reduce emissions.

Why do we need climate neutrality?

The Earth’s climate is warming rapidly due to the build-up of greenhouse gases in the atmosphere, primarily CO² from the burning of fossil fuels, deforestation and other human activities. This warming leads to a range of harmful impacts, including rising temperatures, more frequent and severe extreme weather events, rising sea levels, loss of biodiversity and disruption of ecosystems.

By achieving climate neutrality, we can significantly reduce our contribution to global warming and its associated impacts.

Furthermore, climate neutrality offers numerous benefits that go beyond climate change mitigation. Switching to clean energy sources and sustainable practices can improve air quality, reduce dependence on fossil fuels, create new economic opportunities and improve overall health and well-being. By investing in renewable energy, energy efficiency and ecosystem restoration, we can build a more resilient and equitable society that is better equipped to meet the challenges of climate change.

Who or what needs to become climate neutral?

To achieve the climate protection goals and limit the global temperature rise to 1.5 degrees, various players and sectors must become climate-neutral and reduce their own carbon footprint. This includes:

1. Governments and state organisations: National governments, regional authorities and state organisations must take action, such as increasing existing carbon prices and pricing other sources of emissions, to reduce their emissions and become carbon neutral. They play an important role in developing and implementing policies, laws and incentives that promote the transition to a low-carbon economy.
2. Business and industry: Businesses and industries are significant sources of greenhouse gas emissions and must contribute to climate action by reducing their emissions, optimising resource use and pursuing climate-neutral business models. This includes using clean technologies, increasing energy efficiency, promoting sustainable production and supply chain practices and investing in renewable energy and low-emission solutions.
3. Cities and municipalities: Cities and municipalities are responsible for a significant proportion of global greenhouse gas emissions and can help reduce their emissions through measures such as improved public transport, energy-efficient building refurbishment, promotion of cycle paths and green spaces and the expansion of renewable energies.
4. Individual citizens: Every individual can play their part in climate protection by reducing their energy consumption, switching to sustainable mobility and consumption habits, using renewable energy, reducing and recycling waste and advocating for environmentally friendly policies.

What does climate neutrality mean for the fashion industry?

The fashion industry is responsible for a significant proportion of global greenhouse gas emissions, primarily through the use of fossil fuels in the production, transport and end-of-life disposal of clothing.

It is estimated that the fashion industry is responsible for around 8 – 10 per cent of global CO² emissions worldwide, which is more than the contribution of international aviation and shipping combined. According to the European Environment Agency, the purchase of textiles in the EU generated approximately 270 kilograms of CO2 emissions per person in 2020. This means that the textile products consumed in the EU caused total greenhouse gas emissions of 121 million tonnes.

To compensate for these emissions, companies are opting for offsetting by promoting global climate protection projects and launching supposedly climate-neutral certified products on the market.

However, this form of offsetting is not the absolute solution! It is important to note that offsetting CO² by promoting climate protection projects is not a substitute for reducing emissions. The priority should always be to reduce emissions along the entire value chain as much as possible before deciding in favour of offsetting.

Transparency also plays an important role here. In the context of climate neutrality, companies can make climate-neutral claims to communicate their efforts to reduce or offset greenhouse gas emissions.

However, the new EU directive – the Green Claims Directive – must be taken into account.

The Green Claims Directive protects consumers from misleading claims about the environmental performance of products or services.

By complying with the directive, companies can gain the trust of consumers and strengthen their credibility with regard to their climate reduction efforts. It stipulates that environmental claims must be truthful, clear, understandable and verifiable. Companies must ensure that their climate-neutral claims are not misleading and that they have appropriate evidence or certification to support their claims.

This means that a product or service cannot be labelled as climate-neutral without very specific evidence to back-up the claim.

In addition to offsetting CO² emissions through climate projects, companies can also opt for insetting, which stands for CO² reduction in your own supply chain. This is an absolute advantage if you want to take Scope 3 into account and improve the resilience and quality of your supply chain. Insetting is not only focused on tree planting projects but also on changes to common processes and actions, for example, to increase the recyclability of products.

Insetting therefore pursues a comprehensive approach that includes the entire ecosystem, society and local economic structures. To successfully implement insetting projects, a long-term commitment is required and should be included into a comprehensive climate strategy.

The EU Commission has set a new milestone on the road to climate neutrality by 2050. It recommends reducing greenhouse gas emissions to 90% of 1990 level by 2040. Necessary measures such as the decarbonisation of industry, a reduction in emissions by at least 55% by 2030 and the expansion of domestic production capacities are now being discussed with the European Parliament and the member states. The implementation of this milestone could be an important step towards achieving the climate target in 2050.