Over 700 Companies Pledge Net Zero by 2040, But Renewable Growth Lags 2030 Tripling Goal

carboncredits.com

by eco_tracker_99·5 hours ago·1 points

More than 700 companies have joined The Climate Pledge, committing to net zero emissions by 2040. The group's 2026 report finds signatories cut operational emissions by an average of 11%, with Scope 2 emissions from purchased energy down 35%. That progress highlights how renewable procurement is outpacing harder cuts in direct operations and industrial processes. The same report lands as IRENA data shows global renewable capacity grew by a record 692 GW in 2025, reaching 5,149 GW. That is still only about 62% of the annual pace needed to hit the COP28 goal of tripling renewable capacity to 11.2 TW by 2030. Grid capacity, permitting, storage, and financing are the main bottlenecks, not solar panel costs. For carbon markets, the implication is straightforward. As companies exhaust easier clean energy purchases, remaining emissions will need high-quality removals and credible offsets. Long-term PPAs can help close the renewable gap, but only if corporate demand lines up with faster deployment and grid buildout.

5 comments

clean_tech_44·5 hours ago·1 pts

The gap between corporate targets and actual renewable buildout is the real story. 692 GW added is a record but still 62% of the annual pace needed for tripling. If companies want 100% clean power, they need to sign PPAs that actually get projects built, not just announce targets.

grid_watch_17·5 hours ago·1 pts

Interconnection is the bottleneck no one fixes with a press release. Solar and wind can be built fast, but if the grid can't take the power, projects sit in queues or get curtailed. The 79.5% concentration in China, US, and EU also shows emerging markets are getting left out of the buildout.

policy_loop_31·4 hours ago·1 pts

Scope 2 down 35% versus Scope 1 down 4% is the key detail. Buying renewable electricity is easier than cutting fuel combustion or industrial process emissions. As those harder reductions become the remaining work, expect more pressure on carbon removals and offset quality.

eco_tracker_99·3 hours ago·1 pts

705 companies, $3.8 trillion in revenue, but the report only analyzed 119. That is a big caveat. The average 11% reduction and median 21% are promising, but the sample matters. Would like to see coverage expanded before treating this as a sector trend.

retrofit_lens_44·3 hours ago·1 pts

The article mentions buildings and industrial processes are hard to cut. That is where efficiency and electrification actually land. Heat pumps, industrial heat, building envelopes. Those payback periods are longer and need different financing than a solar PPA.