Why is Net Zero so Important?

Following the signing of the Paris Agreement in 2015, over 200 countries have committed to net-zero emission targets. The UK has pledged to reduce emissions to net zero by 2050, and China has committed to achieving the same target by 2060. The European Union has committed to the European Green Deal, aiming to make Europe the first climate-neutral continent by 2050. The US, on the other hand, has shown an inconsistent and problematic approach to net zero since 2016.  

The IPCC emphasises that to avoid the worst impacts of climate change, we must limit global warming to well below 2°C above pre-industrial levels, and pursue efforts to limit warming to 1.5°C. To achieve this, global emissions must reach net zero by 2050. The IPCC defines net zero as the balance between greenhouse gases emitted into the atmosphere and those removed over a specified period. Achieving net zero requires deep decarbonisation, both in the near term and the long term.

Many companies worldwide have committed to net-zero targets as customers, investors, staff, and stakeholders increasingly focus on sustainability. Many countries have committed to net-zero targets due to their eligibility to report on their progress in reducing corporate emissions in line with financial reporting standards, such as the International Sustainability Standards Board (ISSB). Organisations recognise the importance of reducing emissions for long-term viability and ethical business practices.  

Inaction is not an option, as failing to meet these commitments can result in regulatory penalties, financial losses, and reputational damage. Proactively addressing sustainability goals is essential for maintaining a competitive edge and meeting global standards.

Embracing Nature to Achieve Net Zero: the power of agriculture

Nature-based solutions harness the power of nature to address environmental challenges, and regenerative agriculture is one of the most impactful forms. By using practices that restore and maintain soil health, reduce the use of chemical fertilisers, and enhance biodiversity, regenerative agriculture can help businesses significantly reduce their carbon footprint.

At its core, regenerative agriculture reverses land degradation, thereby restoring the land's ability to capture and store carbon. Techniques such as agroforestry, rotational grazing, and cover cropping not only increase soil organic matter but also sequester carbon from the atmosphere and store it in the ground. In fact, soil restoration is one of the most promising ways to sequester carbon, with estimates suggesting it could capture up to 5.5 gigatons of CO2 annually by 2030¹—comparable to the emissions from the entire global transportation sector or the mitigation potential of wind energy.

The Impact on FLAG Sectors and Emissions Reductions

One of the biggest challenges in achieving net zero is reducing emissions from the FLAG sectors (Forestry, Land, and Agriculture), which are responsible for nearly 25% of global emissions². SBTi recognises the challenges of decarbonising this sector and asks eligible companies to set targets to reduce their FLAG emissions by 72% by 2050. FLAG targets include actions to both mitigate carbon from FLAG activities and increase carbon removals. Regenerative agriculture bridges the gap to lower emissions in these sectors while enhancing carbon sequestration, improving land resilience, and improving water management. For businesses operating within or with the FLAG sectors, regenerative practices offer a strategic opportunity to meet emissions reduction targets.

By adopting regenerative agriculture practices, these businesses can significantly reduce their environmental impact. They can help reverse soil degradation, minimise water usage, and reduce harmful chemical inputs. The result? A more sustainable operation that aligns with global climate targets.

Business Benefits Beyond Emissions

While the environmental advantages of regenerative agriculture are clear, the financial and reputational benefits for businesses are equally compelling. Companies that support and invest in nature-based solutions, such as regenerative agriculture, can unlock a range of benefits that extend beyond emissions reductions.

First, regenerative practices provide a meaningful way for businesses to meet their science-based targets (SBTi) for carbon emissions. As companies seek credible ways to rebalance their emissions, regenerative agriculture presents a high-impact solution, whether through direct carbon sequestration in the soil or by supporting large-scale projects. These efforts contribute to an organisation’s sustainability goals and help it gain a competitive edge in the market.

Moreover, businesses championing sustainable practices, such as regenerative agriculture, are increasingly becoming leaders in climate action. In a world where consumers and investors demand transparency and immediate action, supporting nature-based solutions boosts brand reputation, fostering trust and loyalty among customers, employees, and stakeholders.  

Beyond reputation, regenerative agriculture offers a clear financial incentive. Climate change is driving the need for sustainable practices, and businesses that adopt these solutions early are better equipped to navigate future challenges. From accessing green finance and government incentives to gaining opportunities in carbon markets, regenerative agriculture can pay dividends in environmental and financial terms.

In a nutshell…

The journey to net zero can present some challenges, but nature has the tools we need to achieve it. Regenerative agriculture offers businesses a robust and scalable approach to reducing emissions, restoring ecosystems, and establishing more sustainable operations. By embracing nature-based solutions, organisations don’t just take action—they lead by example. So, the real question isn’t whether nature can help us reach net zero. It’s how quickly we can harness its power to create sustainable development for all. Click here to learn more about how OCW can help your organisation achieve net zero.  

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¹ Source: Coalition of Action 4 Soil Health https://www.coalitionforsoilhealth.org/soilresolution#:~:text=The%20projected%20mitigation%20potential%20in,mitigation%20potential%20of%20wind%20energy

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² Source: IPCC Special Report on Climate Change and Land (2019)https://www.ipcc.ch/srccl/

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