G20 Climate Targets Show Acceleration in Reducing CO2, LSEG Says

Group 1 - Global efforts to reduce emissions are expected to accelerate significantly post-2030, according to an analysis by the London Stock Exchange Group (LSEG) [1] - LSEG's analysis indicates a potential additional reduction in greenhouse gas emissions of up to 18% over the next five years compared to existing 2030 targets [2] - Only 64 countries, accounting for about one-third of global emissions, submitted Nationally Determined Contributions (NDCs) by the September 30 deadline, raising concerns about the ambitious climate agenda at the upcoming COP30 summit [3] Group 2 - An inconclusive COP30 summit could derail the NDC process, while firm commitments from major actors could reinforce the Paris Agreement and the NDC mechanism [4] - The 2035 targets set by G20 economies, representing 71% of the group's emissions, indicate substantial new climate commitments, implying a reduction of 3.3 to 4.4 gigatons of carbon-dioxide equivalent compared to the 2030 NDCs [5] - Faster emissions reductions are primarily linked to progress in China and Turkey, while the European Union is still seeking consensus on its emissions plan [6] Group 3 - Progress on NDCs has significant implications for companies and investors, as they will face increased transition risks due to government efforts to accelerate the shift to a low-carbon economy, along with growing physical risks [7]