Companies around the world are accelerating their climate commitments at a record pace. The Science Based Targets initiative (SBTi) reports that corporates and other companies with both near-term and long-term net-zero targets jumped 227% in just 18 months.
Firms setting near-term only goals also grew by almost 97% in the same period. This fast growth shows a big change in how companies see climate responsibility. This is especially true for high-emission sectors like Industrials, Consumer Discretionary, and Materials.
The data shows that climate ambition is no longer a niche initiative. Companies are adding climate targets to their main business strategies. This change affects investors, supply chains, and whole industries.
Why Are Companies Choosing Science-Based Targets?
Science-based targets allow businesses to align with the Paris Agreement’s 1.5°C pathway, ensuring that emissions cuts follow the latest climate science. These targets give companies a credible plan to reduce emissions while addressing long-term risks.
The SBTi estimates that following science-based pathways could save $1.5 trillion in climate costs by 2030. The financial case is clear: strong climate plans save money. These goals help reduce risk, improve efficiency, and help companies adapt to a low-carbon economy.
Investor and customer expectations also play a critical role. Companies with validated targets are increasingly viewed as more reliable by the market.
In fact, businesses with SBTi-validated goals represented 39% of global market capitalization in 2023, and this share rose to 41% by 2024. These firms also outperformed the broader economy, growing market value by 16% compared to 11% for global GDP.
This net-zero or climate commitment alignment boosts corporate reputation. Brands with real emission-reduction goals stand out. Consumers and investors want proof of progress, so this gives companies an edge.
David Kennedy, SBTi’s Chief Executive Officer, stated:
“Building climate action into commercial strategy helps maintain competitiveness now and in the future and allows companies to capitalise on opportunities in the low-carbon economy.”
The report further reveals that more companies are now setting net-zero targets, showing a clear rise in ambition. In 2023, only 17% of corporates with validated science-based targets had committed to net-zero. By the end of 2024, that share had nearly doubled to 33%.
The trend continued into 2025. By mid-year, over 1,400 companies had announced net-zero targets, making up 38% of all corporates with science-based targets.
The 2027 Update: Raising the Bar
The SBTi will introduce updated standards in 2027 that will set tougher rules for how companies design and report their targets. The revisions aim to prevent greenwashing and ensure climate action stays in line with evolving science.
The changes will affect three main areas:
- Data quality: Companies must provide more robust proof of how they measure and report emissions.
- Scope of targets: Almost all targets already include Scope 3 emissions, which often account for over 70% of a company’s carbon footprint. The 2027 standards will ensure this remains mandatory and more consistent.
- Target reviews: Firms will be required to revisit and update their goals every five years, ensuring they remain scientifically valid.
The new framework will also require companies to publicly show whether their targets are active, updated, or withdrawn. This transparency will create stronger accountability and make it easier to compare progress across industries.
Asia’s Green Acceleration: China Takes the Lead
One of the most striking findings from the SBTi’s latest report is the surge of climate commitments in Asia. The region saw a 134% increase in the number of companies with validated targets, outpacing global averages.
China is leading this momentum. In just 18 months, the number of Chinese companies with science-based targets grew from 137 to 450, marking a 228% increase. Much of this growth comes from industries central to the global supply chain, such as manufacturing, construction, and raw materials.
Other Asian economies are also moving quickly. Government pressure, export requirements, and investor expectations are driving firms to adopt science-based goals.
Big companies are urging their suppliers to do the same. This creates a ripple effect in local and global supply chains.
This trend suggests that Asia will play a central role in shaping the global low-carbon transition. As one of the world’s largest manufacturing hubs, actions taken here have a direct influence on global emissions.
Scope 3 in Focus: Tackling the Hardest Emissions
The growth in science-based targets is already making a measurable difference. Companies with validated targets must report and act on Scope 1, 2, and 3 emissions. These emissions include direct fuel use, as well as activities from suppliers and customers.
Since Scope 3 emissions are typically 11 times greater than direct emissions, this comprehensive approach drives meaningful reductions across value chains.
Currently, 96% of validated companies include Scope 3 in their plans. This ensures emissions are reduced not only at company headquarters but also across the entire production and distribution network.
As standards tighten, companies will have to further strengthen reporting, focus on harder-to-cut emissions, and increase transparency. These improvements will accelerate global decarbonization while also improving operational efficiency. Better emissions data helps businesses reduce waste, save energy, and boost long-term resilience.
Wall Street Meets Climate Action: Investor Shifts
The rise in corporate climate and net-zero ambition is also reshaping financial markets. Companies with clear, science-based climate targets are seen as less risky. This makes them more appealing to investors who care about Environmental, Social, and Governance (ESG) factors.
This trend is also fueling demand in the carbon markets. As companies work to cut emissions, many still face unavoidable Scope 3 emissions. To manage these, they increasingly turn to high-quality carbon credits.
The World Bank says the voluntary carbon market might reach $50 billion by 2030. This growth will partly come from companies following SBTi standards.
Regions moving quickly—such as China and other Asian countries—are likely to see economic benefits, including more jobs in green technology and clean energy industries.
On the other hand, slow-moving regions or sectors may lose competitiveness. Global buyers and investors prefer partners that align with climate goals.
Looking Ahead: The Path to Net Zero
The 227% rise in near-term and net-zero target adoption shows that companies are no longer delaying climate action. Key sectors such as industrials and materials, responsible for a large share of global emissions, are now leading the transition.
As the 2027 update approaches, expectations will rise even higher. Companies must keep data clear, track all value-chain emissions, and update their goals often. Those that succeed will not only contribute to global climate goals but also position themselves as leaders in the low-carbon economy.
The path forward is clear: corporations that act decisively today will shape business strategies, capital flows, and supply chains in the years ahead. In doing so, these corporates are not just helping reduce emissions — they are building the foundation for a sustainable, net-zero global economy.
The post Corporate Climate Pledges Surge 227% as SBTi Net Zero Standards Tighten appeared first on Carbon Credits.
Net zero is often described as a balancing act: cut what you can, account for the rest, and reach zero on the ledger. That framing is useful, but it leaves something out. It treats every tonne of carbon as interchangeable and every route to zero as equally sound, while the science tells a more specific story.
Malawi has lost a striking share of its forests over the past three decades. Woodlands that once covered well over a third of the country now cover less than a quarter, and the pressure on what remains is increasing. Behind those figures sit two practical questions: what is driving the loss, and what reverses it?
Climate change is real, and the evidence is everywhere, from rising sea levels to extreme weather events. While changes in Earth’s climate have occurred naturally over millennia, human activities are now the dominant force behind the current warming trend. Understanding what climate change is, what causes it, and what we can do to stop it is essential for safeguarding our planet and future generations.
Key takeaways
- Human activities, especially burning fossil fuels, are now the dominant driver of climate change, not natural cycles like solar activity.
- Livestock accounts for an estimated 51% of annual global greenhouse gas emissions, while deforestation is the second-largest contributor.
- 2023-2025 was the first three-year period on record to average more than 1.5°C above pre-industrial temperatures.
- Global fossil fuel CO2 emissions hit a record 38.1 billion tonnes in 2025, with no sign yet of a peak.
- Nearly 30% of plant and animal species could be at risk of extinction if global temperatures keep rising.
- Solutions like renewable energy, energy efficiency, carbon offsets, and reduced deforestation can meaningfully slow climate change today.
Climate Change in 2026: The Latest Data
The data keeps confirming the same trend: warming is accelerating, not leveling off. Here’s where things stand as of 2026, based on the most recent findings from NOAA, Copernicus, NASA, and the Global Carbon Project.
2026 climate data snapshot
- Global temperatures: 2025 was the third-warmest year on record, behind 2024 and 2023. The past 11 years (2015–2025) are the 11 warmest ever measured, and 2023–2025 marked the first three-year period to average above 1.5°C over pre-industrial levels.
- CO2 levels: Atmospheric CO2 hit a record monthly high of 430.5 ppm at Mauna Loa in May 2025. Global fossil fuel emissions reached a record 38.1 billion tonnes in 2025, and researchers now say the remaining carbon budget to keep warming under 1.5°C will likely be exhausted before 2030 at current emission rates.
- Extreme weather costs: The U.S. recorded 23 separate billion-dollar weather disasters in 2025, the third-highest annual total on record, costing an estimated $115 billion. The January 2025 Los Angeles wildfires alone caused $61.2 billion in damage, making them the costliest wildfire event in U.S. history.
- Sea level rise: Global mean sea level rose just 0.08 cm in 2025, slowed temporarily by La Niña rainfall patterns, but the long-term rate of sea level rise has more than doubled since 1993, and oceans are up roughly 10 cm (about 4 inches) since satellite records began.
None of this changes the underlying picture: the causes, effects, and solutions below remain the same, they’re just playing out faster and at greater cost each year.
What Is Climate Change?
You’ve likely heard the terms “climate change” and “global warming” used interchangeably. However, they have distinct meanings. Global warming refers specifically to the increase in the planet’s average surface temperature, largely due to greenhouse gas emissions. Climate change, on the other hand, encompasses a broader range of long-term changes in temperature, precipitation, wind patterns, and other aspects of the Earth’s climate system.
Climate change has always been part of Earth’s history, driven by natural interactions between five key systems:
- Atmosphere (air)
- Biosphere (living things)
- Cryosphere (ice and permafrost)
- Hydrosphere (water bodies)
- Lithosphere (Earth’s crust and upper mantle)
Today, the rapid pace and scale of climate change are primarily driven by human activities.
Climate Change (infographic)
What Are the Causes of Climate Change?
Greenhouse Gases
Greenhouse gases (GHGs) trap heat in the Earth’s atmosphere. While some GHGs occur naturally, human activities have sharply increased their concentrations. Major contributors include:
- Carbon dioxide (CO2) – Released by burning fossil fuels, deforestation, and land-use changes.
- Methane (CH4) – Emitted from livestock, landfills, and oil and gas production.
- Nitrous oxide (N2O) – Produced by agricultural activities and fossil fuel combustion.
- Chlorofluorocarbons (CFCs) – Man-made chemicals used in refrigeration and aerosols.
CO2 is the most significant and long-lasting of these gases, making it the primary driver of global warming.
While some of these greenhouse gases, such as water vapor, are naturally occurring, others, such as CFCs, are synthetic. CO2 is released into the atmosphere from both natural and human-made causes and is one of the leading contributors to climate change. CO2 has been increasing at an alarming rate and has the potential to stay in the earth’s atmosphere for thousands of years unless it gets absorbed by the ocean, land, trees, and other sources. As CO2 production has steadily risen, though, the earth’s natural resources to absorb it have also been diminished. This is already occurring in many ways as the earth’s resources are disappearing from things like deforestation. Some studies even predict that plants and soil will be able to absorb less CO2 as the earth continues to warm, possibly accelerating climate change even further.
Solar Activity
Solar activity, as mentioned above, does play a role in the earth’s climate. While the sun does go through natural cycles, increasing and decreasing the amount of energy that it emits to the earth, it is unlikely that solar activity is a major contributor to global warming or climate change. Since scientists began to measure the sun’s energy hitting our atmosphere, there has not been a measurable upward trend.
Agriculture
There are many significant ways in which agriculture impacts climate change. From deforestation in places like the Amazon to the transportation and livestock that it takes to support agricultural efforts around the world, agriculture is responsible for a significant portion of the world’s greenhouse gas emissions. However, agriculture is also an area that is making tremendous strides to become more sustainable. As productivity increases, less carbon is being emitted to produce more food. Agriculture also has the potential to act as a carbon sink, and could eventually absorb nearly the same amount of CO2 it emits.
Deforestation
Deforestation and climate change often go hand in hand. Not only does climate change increase deforestation by way of wildfires and other extreme weather, but deforestation is also a major contributor to global warming. According to the Earth Day Network, deforestation is the second leading contributor to global greenhouse gasses. Many people and organizations fighting against climate change point to reducing deforestation as one of, if not the most, important issues that must be addressed to slow or prevent climate change.
Human Activity
According to the Environmental Protection Agency, the most significant contributor to climate change in the United States is the burning of fossil fuels for electricity, heat, and transportation. Of these factors, transportation in the form of cars, trucks, ships, trains, and planes emits the largest percentage of CO2, speeding up global warming and remaining a significant cause of climate change.
Livestock
While interconnected to many of the agricultural and deforestation issues we have already touched on, livestock in the form of cattle, sheep, pigs, and poultry play a significant role in climate change. According to one study, “Livestock and Climate Change,” livestock around the world is responsible for 51% of annual global greenhouse gas emissions.
What Are the Immediate Effects of Climate Change?
From melting glaciers to more extreme weather patterns, people everywhere are beginning to take notice of the real impacts of climate change. While some nations around the world are taking action with initiatives such as the Paris Climate Agreement, others are continuing business as usual, pumping millions of tons of carbon into the atmosphere year after year. As the 2026 data above shows, climate change continues to cause extreme weather as well as safety and economic challenges on a global scale, and the costs are climbing every year.
Extreme Weather
Changes to weather are perhaps the most noticeable effect of climate change for the average person, largely because of the financial impact severe weather events can have. In 2025 alone, the U.S. recorded 23 separate billion-dollar weather disasters totaling $115 billion in damages, continuing a run of the three highest years on record (2023, 2024, and 2025). Extreme weather influenced by climate change includes:
- Stronger storms & hurricanes
- Heatwaves
- Wildfires
- More flooding
- Heavier droughts
Safety & Economic Challenges
In 2014 the U.S. Department of Defense released a report that stated climate change posed a severe and immediate threat to national security. According to former Secretary of Defense, Chuck Hagel, rising global temperatures, shifting precipitation patterns, climbing sea levels, and more extreme weather events intensify the challenges of global instability, hunger, poverty, and conflict.
Climate change is also likely to cause continued economic challenges in many parts of the world. Some estimates have the U.S. already spending around $240 billion annually due to human-caused climate change, and the 2025 U.S. billion-dollar disaster total of $115 billion shows those costs remain elevated year after year. Putting an exact number on the real costs of climate change is difficult, though, once you consider the staggering costs of losing natural resources like clean air and water.
What Is the Long-Term Impact of Climate Change?
The long-term impact of climate change could be absolutely devastating to the planet and everyone and everything living on it. If the world continues on its current trajectory, and 2025’s record fossil fuel emissions suggest it is, then we will likely continue to see increasing effects on everyday life.
Health
There are many ways in which climate change could impact people’s health. Depending on age, location, and economic status, climate change is already affecting the health of many and has the potential to impact millions more. According to the Center for Disease Control and Prevention, climate change-related health risks may include:
- Heat-related illness
- Injuries and fatalities from severe weather
- Asthma & cardiovascular disease from air pollution
- Respiratory problems from increased allergens
- Diseases from poor water quality
- Water & food supply insecurities
Negative Impact on Ecosystems
Ecosystems are interconnected webs of living organisms that help support all kinds of plant and biological life. Climate change is already changing seasonal weather patterns and disrupting food distribution for plants and animals throughout the world, potentially causing mass extinction events. Some studies estimate that nearly 30% of plant and animal species are at risk of extinction if global temperatures continue to rise.
Water & Food Resources
Climate change could have a significant impact on food and water supplies. Severe weather and increased temperatures will continue to limit crop productivity and increase the demand for water. With food demand expected to increase by nearly 70% by 2050, the problem will likely only get worse.
Sea Levels Rising
Rising sea levels could have far-reaching effects on coastal cities and habitats. Increasing ocean temperatures and melting ice sheets have steadily contributed to the rise of sea levels on a global scale. Global sea level has risen roughly 10 cm (about 4 inches) since satellite records began in 1993, and the National Oceanic and Atmospheric Administration estimates sea levels will rise by at least 8 inches by 2100, potentially causing increased flooding and a decrease in ocean and wetland habitats.
Shrinking Ice Sheets
While contributing to rising sea levels, shrinking ice sheets present their own set of unique problems, including increased global temperatures and greenhouse gas emissions. Climate change has driven summer melt of the ice sheets covering Greenland and Antarctica to increase by nearly 30% since 1979.
Ocean Acidification
The ocean is one of the main ways in which CO2 gets absorbed. While at first glance that may sound like a net positive, the increasingly human-caused CO2 is pushing the world’s oceans to their limits and causing increased acidity. As pH levels in the ocean decrease, shellfish have difficulty reproducing, and much of the ocean’s food cycle becomes disrupted.
What Are the Solutions for Climate Change?
While the effects of climate change can seem bleak, there is still hope. By taking immediate action to curb climate change, we may never see the worst consequences. Likewise, as the world adopts cleaner, more sustainable energy solutions, there may be millions of new jobs created and billions of dollars of economic benefits. Below are some practical ways you can battle climate change, including:
- Switching to renewable energy (solar, wind, hydro)
- Purchasing Renewable Energy Certificates (RECs) for your home
- Using energy-efficient appliances and insulating buildings
- Offsetting your carbon emissions through verified programs
- Adopting plant-based diets and reducing meat consumption
- Minimizing food waste and single-use plastics
- Protecting and restoring forests and wetlands
- Supporting clean transportation options (EVs, public transit, biking)
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Why Climate Change Matters to Everyone
Climate change isn’t just an environmental problem. It’s an everything problem. It touches every aspect of our lives:
- Jobs and the economy: Clean energy sectors are rapidly expanding and could create millions of new jobs worldwide.
- National security: Climate change exacerbates global instability, resource conflicts, and forced migration.
- Public health: Clean air, safe drinking water, and stable food systems are all at risk.
- Justice and equity: Low-income communities and developing nations are often hit hardest despite contributing the least to global emissions.
- Future generations: The choices we make today will shape the legacy we leave behind.
By investing in climate solutions now, we not only avoid catastrophe but also unlock opportunities for innovation, resilience, and shared prosperity.
FAQ: Climate Change
What is climate change?
Climate change refers to long-term shifts in temperature, precipitation, wind patterns, and other aspects of Earth’s climate system, largely driven today by human greenhouse gas emissions.
What is the difference between climate change and global warming?
Global warming specifically means the rise in the planet’s average surface temperature. Climate change is the broader term, covering the shifts in weather patterns, sea levels, and ecosystems that result from it.
What causes climate change?
The main driver is greenhouse gas emissions, especially carbon dioxide from burning fossil fuels, along with deforestation, agriculture, and livestock. Natural factors like solar activity play a much smaller role.
What are the effects of climate change?
Effects include more extreme weather, rising sea levels, shrinking ice sheets, ocean acidification, threats to food and water supplies, and growing risks to public health.
Is climate change getting worse in 2026?
The trend lines are still moving the wrong way. 2025 was the third-warmest year on record, global fossil fuel emissions hit a new record of 38.1 billion tonnes, and 2023–2025 was the first three-year period to average above 1.5°C over pre-industrial levels.
Can climate change be reversed?
It’s generally described as something we can slow and adapt to rather than fully reverse in the near term. Cutting emissions, protecting forests, and shifting to renewable energy can still prevent the worst outcomes.
What can I do to help stop climate change?
Individual actions add up: switching to renewable energy, using energy-efficient appliances, offsetting your carbon emissions, reducing meat consumption, and supporting clean transportation all make a difference.
Brought to you by Terrapass, your trusted partner in carbon offsets and climate education.
Sources:
- Rose, Brian E. “ATM 623: Climate Modeling.” Lecture04 – Climate System Components, atmos.albany.edu.
- “AAAS Reaffirms Statements on Climate Change and Integrity.” American Association for the Advancement of Science, aaas.org.
- “The Causes of Climate Change.” NASA, 6 Sept. 2019, climate.nasa.gov/causes.
- “The Carbon Cycle.” NASA, earthobservatory.nasa.gov/features/CarbonCycle/page5.php.
- Green, Julia K., et al. “Large Influence of Soil Moisture on Long-Term Terrestrial Carbon Uptake.” Nature, vol. 565, no. 7740, 2019, pp. 476–479, nature.com.
- “Is the Sun Causing Global Warming?” NASA, climate.nasa.gov.
- “Agriculture and Greenhouse Gas Emissions.” American Farm Bureau Federation, fb.org.
- “Deforestation and Climate Change.” Earth Day Network, earthday.org/campaigns/reforestation/deforestation-climate-change/.
- “REDD: Protecting Climate, Forests and Livelihoods.” International Institute for Environment and Development, 24 Jan. 2018, iied.org.
- “Sources of Greenhouse Gas Emissions.” EPA, 13 Sept. 2019, epa.gov.
- Goodland, Robert and Anhang, Jeff. “Livestock and Climate Change.” worldwatch.org.
- “Extreme Weather and Climate Change.” Center for Climate and Energy Solutions, 14 Aug. 2019, c2es.org.
- “DoD Releases 2014 Climate Change Adaptation Roadmap.” U.S. Department of Defense, defense.gov.
- “The Economic Case for Climate Action in the United States.” FEUUS, feu-us.org.
- “Climate Change and Public Health.” Centers for Disease Control and Prevention, cdc.gov.
- “Climate Impacts on Ecosystems.” EPA, 22 Dec. 2016, epa.gov.
- Kijne, Jacob W. “Hugh Turral, Jacob Burke and Jean-Marc Faurès: Climate Change, Water and Food Security.” fao.org.
- “Quick Facts on Ice Sheets.” National Snow and Ice Data Center, nsidc.org.
- “Copernicus: 2025 was the third hottest year on record.” Copernicus Climate Change Service, climate.copernicus.eu.
- “Assessing the Global Temperature and Precipitation Analysis in 2025.” NOAA NCEI, ncei.noaa.gov.
- “Fossil Fuel CO2 Emissions Hit Record High in 2025.” Global Carbon Project, globalcarbonbudget.org.
- “2025 in Review: U.S. Billion-Dollar Disasters.” Climate Central, climatecentral.org.
- “NASA Analysis Shows La Niña Limited Sea Level Rise in 2025.” NASA/JPL, jpl.nasa.gov.
The post What Is Climate Change? Causes, Effects & Solutions (2026) appeared first on Terrapass.
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