As the climate crisis intensifies, the Net Zero Stocktake 2024 reveals a significant commitment gap among cities, states, and regions, slowing down the necessary global transition to a net zero economy.

The Net Zero Tracker‘s latest annual assessment highlights only a modest increase in the number of subnational governments—such as states, regions, and cities—setting net zero targets over the past year. While some leaders are focused on implementing these targets, many have yet to take meaningful steps towards a successful transition. Major companies without net zero targets pose growing financial risks, not just for themselves but for the broader economy and the planet.

Little improvement

“It’s been two years since the UN Secretary General called for zero tolerance on greenwashing in net zero pledges, but our findings show little improvement,” the researchers noted. “Less than 5% of all pledges from cities, regions, and companies meet our integrity standards, rising by just 1% since last year. However, there are some bright spots, demonstrating that ambitious and honest action is possible.”

The report provides key data on the current state of net zero targets:

• 26% (185 of 706) of states and regions in the tracker have net zero goals, covering a population of 2.2 billion, up from 497 million in December 2020.
• 23% (271 of 1,186) of major cities have set net zero targets, representing 793 million people, up from 640 million in December 2020. However, most of these cities are in high-income countries, with only 11% of cities in lower-income nations having set targets.

While many countries and corporations have aligned their net zero commitments with the Paris Agreement, the report finds gaps in implementation. 87% of global greenhouse gas emissions, 93% of global GDP, and 88% of the world’s population are now under the coverage of national-level net zero targets, and nearly 60% of publicly listed companies have also set targets, with that number reaching 67% when weighted by revenue.

Examples of progress in major-emitting nations include:

• In India, 14 of 20 regions with a net zero target aim to achieve their goals earlier than the national target of 2070.
• In the U.S., 18 states have set net zero targets, five of which are more ambitious than the federal 2050 goal.
• In Mexico, although there is no national net zero target, 11 of the 32 states have long-term climate goals, with three states committing to net zero.

Despite these advancements, the report emphasizes that more needs to be done. Cities, states, and regions must use their authority to enforce policies and create clear, actionable net zero plans. Progress has been slow, with only 5% of companies, 4% of cities, and 3% of regions meeting all criteria for target integrity.

However, the Race to Zero campaign, led by the UN Climate Change High-Level Champions, has played a crucial role in improving the robustness of net zero commitments. Entities participating in the campaign generally have higher levels of target integrity, and all cities meeting full robustness criteria are campaign members.

A concerning statistic from the report is that 40% of major non-state and subnational entities (1,700 of 3,870) are operating without any emissions reduction targets. This includes 495 companies, a decrease from 734 last year, with many of the companies without targets based in China.

Notably, some high-profile companies like BYD, Fox Corporation, Shimano, Hertz, Nintendo, and Berkshire Hathaway have yet to set any emissions reduction targets. Additionally, nearly half of the world’s 100 largest private companies have opted out of setting climate goals.