The SBTi’s standard aims to clarify the target for net zero emissions, whilst the Common Ground Taxonomy indicates China-EU cooperation on sustainable finance issues.

By Paul A. Davies, Michael D. Green, and James Bee

Last month, the Science Based Targets initiative (SBTi) launched its Net Zero Standard, which aims to provide a globally recognised, science-based target for companies that wish to commit to net zero emissions, to ensure consistency in approach and avoid accusations of greenwashing.

Shortly after the SBTi announcement, the EU and China took a step towards further consolidation of ESG-related standards by agreeing to set out the extent to which their visions for defining green investments are aligned. The Common Ground Taxonomy-Climate Change Mitigation (CGT) builds on the EU Green Taxonomy and Chinese Green Bond Catalogue, and marks the culmination of two years’ work by the International Platform on Sustainable Finance (IPSF), a forum for dialogue between policymakers from numerous countries, with the aim of increasing the amount of private capital channelled into sustainable investments.