Achieving Net-Zero Carbon Emissions: Investment and Policy Considerations

There are a number of drivers pushing businesses and governments to adopt policies and technologies that will help reduce or eliminate carbon emissions. These include the business considerations for going net-zero, and the investment and policy considerations for reducing carbon emissions, which we’ll review here.

Achieving carbon emission reduction targets will require significant investments in low-carbon technologies and infrastructure, but these investments should yield reduced environmental damage, improved public health and increased energy security.

Why Carbon Emission Reduction is Critical

There are a number of reasons why investing in reducing carbon emissions makes economic sense. Climate change is costing the world economy billions of dollars each year in damages from extreme weather events, crop failures and other impacts.  Reducing greenhouse gas emissions will also improve public health by reducing air pollution, which is linked to a range of health problems including respiratory illnesses, heart disease and cancer. Transitioning to a low-carbon economy will also increase energy security by reducing our dependence on imported fossil fuels.

Obstacles Preventing Carbon Reduction

Despite the benefits, there are still some challenges to making the investment case for net zero carbon emissions. Many of the benefits, such as avoiding damage from climate change, are difficult to quantify in monetary terms. The upfront costs of investing in low-carbon technologies can be high, while the savings from reduced fuel consumption may not be realized for years or even decades into the future.

How Policies Can Impact Carbon Emissions

A growing number of countries around the world have adopted policies aimed at reducing greenhouse gas emissions, and this is highly likely to continue in the future. As countries adopt more ambitious targets for emission reductions, businesses and investors will need to find ways to meet these targets.

There are many reasons to create and support policies that will lead to net zero carbon emissions:

• There are many co-benefits of policies that would lead to net zero carbon emissions, such as improved air quality and public health.
• Acting on climate change would send a strong signal to the international community that the United States is committed to addressing this global problem.
• Many of the solutions to climate change are also good for the economy, such as investing in renewable energy and energy efficiency.
• Net zero carbon emissions would help to avoid the worst impacts of climate change.
• Taking action on climate change would create jobs in many sectors of the economy, including manufacturing, construction and agriculture.
• Policies that lead to net zero carbon emissions would have other benefits as well, such as reducing dependence on foreign oil and improving national security.

Investors are increasingly looking to put their money into companies and projects that are committed to reducing their environmental impact. As more investors become aware of the risks associated with climate change, they are likely to put even more pressure on companies to adopt low-carbon policies and technologies. Contact EnTech Solutions to help you meet your clean energy goals.