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The Pharmaceutical industry is responsible for 4.4% of global emissions.


The pharmaceutical sector, faced with rising stakeholder expectations and tightening regulations, is accelerating efforts to reduce its environmental impact. Several major players in the industry have committed to achieving Net Zero emissions as part of their corporate sustainability strategy. These leader are blazing the trail by implementing policies and undertaking initiatives, including the purchase of carbon credits, to accomplish this ambitious objective.

The pharmaceutical industry’s carbon footprint

The pharmaceutical sector is a significant contributor to global emissions. If it were a country, its carbon footprint would rank 9th in the world. Energy-intensive manufacturing processes, extensive distribution networks, and greenhouse gas-emitting propellants in inhalers drive up the industry’s climate impacts. Experts urge pharmaceutical companies to act, as unmitigated warming could strain global health systems and hinder access to vital medications.

While daunting, the mission is not impossible. Industries like tech and retail are demonstrating that reaching Net Zero is achievable. These commitments raise the bar for pharmaceutical companies to take equally bold climate action.

Major industry players are stepping up. AstraZeneca, Novartis, and Takeda have set ambitious Net Zero targets while investing in renewable energy, green chemistry innovation, and carbon removal. Their efforts are having ripple effects as peers follow suit. With collaboration and persistence, the pharmaceutical industry can curb its emissions in line with climate science.

AstraZeneca’s U$1bn of climate commitments

With over $26 billion in annual revenue, AstraZeneca is one of the world’s largest pharmaceutical companies. It manufactures blockbuster treatments ranging from diabetes to oncology medications.

In 2020, AstraZeneca announced its Ambition Zero Carbon strategy, aiming to achieve carbon neutrality across its entire value chain by 2030. This bold pledge puts AstraZeneca at the vanguard of climate action in pharma.

To meet its goal, AstraZeneca is transitioning to 100% renewable electricity at its sites by 2025. It is also optimizing manufacturing to curb emissions while partnering with suppliers to reduce their carbon footprints. AstraZeneca also plans to eliminate fossil fuel vehicles from its fleet by 2030.

Beyond its operations, AstraZeneca is developing a portfolio of over $1 billion in green investments. These include carbon removal and storage solutions expected to offset about 2.5 million tonnes of CO2 annually by 2025.

AstraZeneca’s commitment is spurring the industry to accelerate sustainability initiatives. Being the pioneer in the pharmaceutical industry to establish a bold net-zero objective that encompasses its entire value chain, AstraZeneca is setting a remarkable example that its competitors will have to strive to emulate.

Novartis to use 100% renewable energy by end of 2023

Headquartered in Switzerland, Novartis is a leading global medicines company with over $48 billion in 2021 revenue. Its therapeutic areas span eye care, immunology, and cardiovascular treatments.

In 2021, Novartis announced its aim to achieve carbon neutrality across Scopes 1, 2, and 3 by 2040. Scope 1 and 2 cover direct emissions from Novartis’ operations, while Scope 3 includes indirect emissions across its supply chain.

Novartis’ environmental policies are publicly available on the internet. The company has made meeting its Net Zero ambition a top priority, with a strong and focused approach in four crucial areas: sourcing renewable electricity, enhancing energy efficiency, promoting innovative green chemistry, and investing in carbon removal offsets.

Novartis is already sourcing 80% of its electricity from renewables. It is also optimizing production processes, deploying automation, and modifying fleet vehicles to curb emissions. The company is on track to source 100% of its power from renewables by the end of 2023.

Additionally, Novartis is pioneering molecular design techniques to develop medicines with lower environmental impacts. The company is actively investing in projects that focus on nature-based carbon removal, such as collaborating with Carbon Direct to expand the implementation of carbon forestry offsets.

By working toward Net Zero science-based targets, Novartis is positioning itself as a leader in green pharmaceutical manufacturing. Its multipronged approach can serve as a model for other companies.

Takeda Pharmaceuticals shows the way for Asia

Japan’s largest pharmaceutical company, Takeda Pharmaceutical generates over $30 billion in annual revenue from medicines treating conditions from cancer to rare diseases.

In 2021, Takeda announced its commitment to achieving Net Zero greenhouse gas emissions by 2040. It is working to reduce and offset its entire carbon footprint, including Scope 3 emissions from its supply chain.

Takeda is achieving its goal by increasing renewable electricity usage, improving energy efficiency at its sites, electrifying its vehicle fleet, and reducing emissions from business travel. It aims to cut Scopes 1 and 2 emissions 46% by 2030.

Takeda also collaborates with pharmaceutical industry partners and suppliers to curb emissions across its value chain under the Pharmaceutical Supply Chain Initiative. And it plans to utilize carbon removal offsets for hard-to-abate emissions.

Takeda’s pledge to achieve Net Zero marks a groundbreaking moment for the pharmaceutical industry in Asia and beyond, as they lead the charge towards comprehensive decarbonization. It’s 2040 target and interim science-based milestones demonstrate meaningful leadership.

Pharma’s challenges in reaching Net Zero

Despite strong commitments from sustainability front-runners, achieving net-zero emissions poses complex challenges for pharmaceutical companies. Many production processes inherently rely on fossil fuels as heat sources and for transporting materials. Companies need major capital investments to transition these operations to clean energy alternatives.

Pharmaceutical distribution and long, complex supply chains also make emissions reductions difficult. Cold chain storage and last-mile delivery result in substantial greenhouse gas outputs. Meanwhile, developing green chemistry solutions requires years of research and development, along with new manufacturing infrastructure. These costs can be prohibitive.

Overcoming Challenges

While obstacles exist, experts emphasize they can be solved through collaboration, innovation, and policy action.

Companies can join forces and share their knowledge and resources through initiatives like the Pharmaceutical Supply Chain Initiative. This collaboration enables them to expand their renewable energy procurement, boost their efficiency, and make strides in green chemistry.

Governments can help by offering incentives for clean technology investments and funding research into pharmaceutical process improvements.

International cooperation can accelerate decarbonization of global supply chains. And standardized offset methodologies will ensure carbon removal credits have integrity.

Ultimately, reaching Net Zero will depend on persistence, investment, and cross-industry partnership. But the health and environmental benefits make it imperative for pharmaceutical companies to see it through.

Opportunities from Net Zero efforts

Pursuing Net Zero targets also opens up opportunities for pharmaceutical companies to add business value, beyond environmental benefits. Optimizing processes for energy efficiency provides cost savings from reduced power consumption and heating needs. Streamlining supply chains also cuts costs over the long term.

First movers on Net Zero goals can boost their reputations with consumers and investors, who increasingly prioritize sustainability. These companies may have better talent recruitment and retention.

Developing and marketing lower carbon medicines can become a competitive advantage. Doctors and health systems are paying more attention to the climate footprint of drugs.

AstraZeneca’s partnerships have the potential to unlock opportunities for companies to venture into the burgeoning green investment markets. Through these collaborations, businesses can not only contribute to the sustainability of our planet but also reap financial benefits by investing in carbon removal and renewable energy projects.

Finally, building climate resilience helps ensure business continuity as the physical impacts of climate change accelerate.

Government policy propels climate action

Governments are ramping up policies aimed at decarbonizing pharmaceutical value chains through incentives and requirements.

The Inflation Reduction Act of 2022 in the United States presents an extraordinary opportunity, providing over $60 billion in incentives dedicated to fostering energy efficiency, electrification, and groundbreaking advancements in green chemistry. This can offset costs for companies pursuing these strategies.

The EU’s pharmaceutical strategy aims to make drug manufacturing and distribution more sustainable by implementing green product design and procurement requirements. This will help reduce emissions.

India released a roadmap in 2022 pushing pharmaceutical companies to adopt renewable energy and assess Scope 3 climate impacts. It aims to help India meet its national climate targets.

Such policies encourage pharmaceutical companies to take ownership of their emissions and are likely to expand as more governments declare net-zero commitments.

The Road Ahead

While the 2030s and 2040s may seem like distant milestones, reaching Net Zero requires immediate action across pharmaceutical supply chains. Industry leaders have provided a blueprint – including renewable energy procurement, distribution optimization, green chemistry, and carbon removal.

New technologies and nature-based solutions are expanding decarbonization opportunities. With collective willpower, strategic investment, and transparent reporting, Net Zero is within the pharmaceutical industry’s reach. All stakeholders must maintain pressure and hold firms accountable for their pledges for a sustainable future.

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Net zero needs nature: a carbon credit guide

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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.

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Deforestation in Malawi: causes and solutions

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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?

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What Is Climate Change? Causes, Effects & Solutions (2026)

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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)

Climate change infographic showing causes, effects, and solutions

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.

Make climate change your business, learn more about Terrapass carbon offsetsWhile 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.

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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)

Try the Terrapass Flight Carbon Calculator

Traveling by plane? Use the Terrapass Flight Carbon Calculator to estimate your flight emissions and support verified offset projects.

See How Terrapass Can Help Your Business

Companies facing growing pressure to cut emissions, whether from regulation, investors, or customers, can explore Terrapass’s business carbon offset programs to start addressing their footprint today.

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.

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