Finalized emissions rules, new clean energy programmes and the G7's agreement

G7 agreement: committing to coal phase-out by 2035 for net zero goals

Energy ministers from the Group of Seven (G7) have committed to phasing out coal-fired power plants by 2035, a significant step towards achieving global net zero emissions. The agreement, announced during an April 2024 meeting in Turin, aligns with urgent climate action goals highlighted at the COP28 UN climate summit. The decision addresses the need to reduce reliance on coal, which provided 16% of the G7's electricity in 2023. Moving away from coal requires substantial investments in alternative energy sources like solar, wind and biofuels. This transition poses challenges and opportunities, particularly for coal-dependent economies such as Germany and Japan, which must undergo significant infrastructural transformations. For businesses, the G7's pledge serves as a catalyst to diversify energy sources and enhance efficiency, directing capital towards sustainable projects. This is positive leadership by advanced economies that has the potential to influence broader international efforts toward net zero goals.

The US EPA finalizes rules to limit emissions from coal and natural gas

The US Environmental Protection Agency (EPA) has recently finalized rules to limit GHG emissions from coal and natural gas power plants. Specifically, existing coal and new gas-fired power plants will need to cut CO2 emissions by 90% by 2032. Rules such as these are critical for decarbonizing the economy: the private sector faces pressure to reduce emissions, but without the public sector on board, progress will be limited. Climate policy is a key enabling factor for corporate transition plans, and firms must engage with policy to ensure their own targets are achievable. Businesses should focus on advocating for policies that are related to their own operations and decarbonization efforts. Globally, regulation is one of the most effective tools for driving climate action. By including advocacy in their transition plans, organizations can help ensure that governments pass, uphold and enforce climate legislation that enables and motivates change across all sectors.

Apple incorporates clean energy programme into supplier code of conduct

Since launching its Clean Energy Program in 2022, Apple has made significant progress in committing its suppliers to use 100% renewable energy for all Apple related product by 2030. In its latest Environmental Progress Report, Apple announced that over 320 strategic suppliers – accounting for 95% of Apple’s direct spend for materials, manufacturing and assembly – are now committed to the programme. To support its suppliers in this commitment, Apple has invested in supplier training through its Clean Energy Academy and Clean Energy Portal. To go beyond voluntary commitments, Apple has now incorporated the programme into its Supplier Code of Conduct. This addition to the Code of Conduct – which already included several emission-related requirements (see Verdantix Strategic Focus: Strategies For Reducing Purchased Product Emissions) – will expand the commitment to Apple’s entire direct manufacturing supply chain and contribute towards its target of being carbon neutral across the entire value chain by 2030. Apple’s substantial purchasing power, market influence and brand reputation allow it to be one of the early adopters of a blended strategy of ‘hard’ and ‘soft’ corporate governance toward supply chain emissions.

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