Net Zero Regulation Stocktake
NET ZERO REGULATION STOCKTAKE: What does the road to Net zero look like?
Regulations related to the transition to net zero are already in place in a number of jurisdictions and are recommended by the United Nations to accelerate the transition to a low-carbon economy. There is, however, a gap in knowledge of the regulations that already exist or are in progress, as well as instruments that could be reformed to encompass net zero goals.
To fill this gap, between May and August 2023, Oxford Net Zero took stock of national-level climate regulations and policy instruments coming from G20 members. The 2023 Stocktake is a precursor to expanded, systematic tracking of net zero-related regulations. The forthcoming tracker will be an initiative by the Net Zero Regulation and Policy Hub at the University of Oxford.
Regulatory Domains
Types of instruments tracked so far:
1. Claims & Financial Product Standards
Advertising products, services, or corporate performance as “net zero” or similar is subject to specific criteria, including compliance with financial product standards.
2. Disclosure
Companies and financial institutions report on the risk of climate impacts and decarbonisation.
3. Procurement
Governments condition procurement to firms and products that meet well-defined net zero or decarbonisation standards.
4. Transition Plans
Regulators require firms to outline their pathways to net zero or decarbonisation.
Key results
Regulation aRE disseminated around the world
The majority (15 out of 20) of G20 members have implemented regulations in at least one of the tracked regulatory domains. Additionally. all of the countries that are yet to regulate have instruments under development, indicating ongoing efforts towards regulation.
This dynamic regulatory scenario emphasises the importance of continued monitoring, analysis, and collaboration to drive effective and comprehensive regulation towards achieving global decarbonization.
THE REGULATIONS ARE COMING FROM DEVELOPING AND DEVELOPED NATIONS
All in all, governments are developing climate regulations to support their decarbonization pathways. This is being done across the G20, by both developing and developed nations. While there is evident progress, comprehensive regulation has yet to be adopted, as no G20 member has regulated in all four of the covered domains so far.
G20 members account for 85% of the world’s economy. Moving the needle towards regulated net zero actions in these countries plays a pivotal role in driving the transition to a low-carbon economy worldwide.
VOLUNTARY STANDARDS ARE GAINING MOMENTUM IN NATIONAL REGULATIONS
Voluntary standards have been fundamental in creating and promoting best practices for net zero action but have limited reach. The data indicates that the shift from voluntary standards to their incorporation into mandatory national regulations is underway.
Over 160 mapped instruments make use of standards to support their text. Individual standards have been referenced (cited, used as a basis, encouraged or required) over 390 times, with the Task Force on Climate-Related Financial Disclosures (TCFD) being the most frequently cited. 24 out of the 77 mapped climate regulations either mandate compliance with a standard or align themselves to one.
sTOCKTAKE RESOURCES
DATASET – BETA VERSION
The bulk of data collection took place between May and June 2023 by Lucilla Dias and Adriana Elera, with some supplementary data reviews in July and August 2023. The dataset is in a beta version and is subject to change.
We appreciate your feedback! If you have information to complement the dataset or spot any misinterpretations, please get in touch with us at lucilla.dias@bsg.ox.ac.uk and kaya.axelsson@ouce.ox.ac.uk.
REPORT
Access the 2023 Stocktake Report for a detailed version of our findings.
CODEBOOK
Access the codebook for a definition of the mapped fields.
BRIEF
Please see our brief on early findings prepared for London Climate Week, 2023.
DISCOVER more RESEARCH
News and Events
Job opening: Postdoctoral Research Associate in Carbon Accounting
The School of Geography and the Environment and the Department of Earth Sciences are recruiting a Postdoctoral Research Associate (PDRA) in Carbon Accounting to work on the Net Zero Aviation project. This position involves researching carbon ... Read more
Young climate leaders funded by Oxford Net Zero and SSEE to attend COP29
The inaugural cohort of Global Youth Climate Training (GYCT) Programme bursary recipients will arrive in Baku, Azerbaijan in the coming days, ready to participate in their individual streams of work at COP29. The GYCT, a collaboration between ... Read more
Call for participants: “Unlocking the power of youth to develop equity in net-zero governance”
Oxford Net Zero's Engagement Team have an open call for youth aged 18-35 years old to participate in a new 8-month long research project to embed equity criteria into net-zero governance. There is perhaps no single demographic that will be ... Read more
Net Zero Stocktake 2024 launches at New York Climate Week
The Net Zero Tracker (NZT) has today launched its 2024 Net Zero Stocktake at Climate Week NYC. Oxford Net Zero Co-Investigator Professor Thomas Hale, who co-led the report, spoke on the panel at the event, which took place at the UN General ... Read more
Job opening – Data Lead: Net Zero Tracker (NOW CLOSED)
Please note that this opportunity is now closed. This is an exciting opportunity to be at the heart of the project providing crucial data for assessing net zero commitments around the world – https://www.zerotracker.net. The Net Zero ... Read more
Findings from Scope 3 workshops hosted by Oxford Net Zero and Grantham Institute at Imperial College London published
The Science Based Targets Initiative (SBTi) is the largest validator of corporate net-zero targets, representing nearly 40% of the global economy by market capitalisation, through assessment against its Corporate Net Zero Standard. In April ... Read more