Using publicly disclosed GHG emissions reduction targets by companies in G7 economies as a proxy, a CDP’s analysis shows that current emissions reduction targets are leading to a 2.7°C decarbonization pathway — or 2.4°C if emissions from corporate supply chains, known as Scope 3 emissions are excluded. This ambition is well above the Paris Agreement’s goal to keep Earth’s temperature rise at or below 1.5°C, the upper temperature limit that is supposed to keep us on the safe side. It is important to note that + 1°C beyond Paris Agreement’s goal is likely to generate catastrophic impacts. To illustrate, the difference between 1.5°C and 2°C means 2.6 times more people are likely to be exposed to extreme and potentially dangerous heat events.
Based on these data highlighting a failure in containing GHG emissions, countries (especially in the Global South) have to prepare for worse. They need urgently to put more efforts (and money) on projects that cope with climate change effects especially in the water and agriculture sectors. Unfortunately, there is a structural imbalance in global climate finance that largely favors mitigation projects over adaptation projects.