Six Climate Innovations That Paved the Way to Net Zero in 2022

The destruction brought about by climate change in the past year was often so severe that it was difficult to comprehend. In Pakistan, catastrophic summer flooding resulted in thousands of deaths, the displacement of millions, and losses of more than $40 billion. In Nigeria, autumn floods caused hundreds of fatalities and displaced over one million people. Droughts in Europe, China, and the United States caused rivers to dry up and hindered the flow of trade on major waterways such as the Mississippi and the Rhine.

Despite the extremes of the climate crisis, the human response was not consistent. Coal consumption, the most polluting fossil fuel, increased in 2022. Nations such as the UK and China appeared to be retreating from their climate commitments. However, there were still positive developments that were overshadowed by the more dramatic events. It is easy to overlook the progress made towards a lower-carbon world that occurred between the more widely reported disasters.

As the year 2022 progressed, a path of optimism for the climate was revealed. Policy advancements have the potential to make a significant impact in the fight against rising temperatures. Here is a selection of six positive developments from a remarkable year, as many countries elected governments with a focus on climate change and implemented new initiatives to reduce greenhouse gas emissions.

In August, the Biden administration and a slim Democratic majority in Congress were able to pass the Inflation Reduction Act, which is the most ambitious climate legislation the US has ever seen. This law is supported by $374 billion in climate spending, and is expected to reduce greenhouse gas emissions by 4 billion tons. It will also make it easier to implement renewable energy, develop green technologies, and provide subsidies for electric cars, heat pumps, and other products. This is a major step forward in the fight against climate change, and a sign that Washington is not as gridlocked as it may have seemed.

The European Union has taken a major step towards fulfilling its commitment to reduce emissions by 55% by 2030 (in comparison to 1990 levels). The 27 member states have come to an agreement to implement the Carbon Border Adjustment Mechanism, a levy on certain imports that is intended to protect industries within the EU that are subject to the region's increasingly stringent regulations on greenhouse gas emissions. Once the mechanism is in place, imported goods from countries without similar restrictions will be subject to additional costs.

In 2022, the EU carbon market will be significantly altered to include road transport, shipping, and heating. This expansion of the policy will require companies, from energy producers to steelmakers, to reduce their pollution at a faster rate. The agreement provided assurance to businesses and investors, causing European carbon prices to reach a yearly peak.

As the year 2022 was coming to a close, negotiators at the COP15 United Nations Biodiversity Conference in Montreal achieved a remarkable victory. A pledge was made by 195 nations to protect and restore at least 30% of the Earth's land and water by 2030. Additionally, wealthier countries agreed to provide an estimated $30 billion annually to poorer nations by 2030, with a portion of the money going to a new biodiversity fund.

One month after a momentous decision at a UN-sponsored conference, another major breakthrough was achieved. At COP27 in Sharm El-Sheikh, Egypt, delegates reached a last-minute agreement to establish a fund to compensate developing countries that have been adversely affected by climate change. This fund had been a long-standing demand of nations that have had the least contribution to global warming.

In 2022, Just Energy Transition Partnerships (JETP) became a more popular form of climate funding. This mechanism is designed to assist developing countries that rely heavily on coal to transition away from the most damaging fossil fuel without leaving workers and communities behind. South Africa's $8.5 billion JETP, declared in 2021, served as a model for these agreements. Furthermore, agreements made in 2022 are expected to generate $20 billion for Indonesia and $15.5 billion for Vietnam.

Voters made significant changes in the leadership of several important countries. In Brazil, Luiz Inacio Lula da Silva was elected president after pledging to end the deforestation of the Amazon. Additionally, pro-climate parties had a successful outcome in Australia's elections.

In November, President Joe Biden and Chinese leader Xi Jinping held a meeting to restore the relationship that had been disrupted due to a diplomatic dispute concerning Taiwan. The two largest economies and emitters of greenhouse gases have been essential in solidifying past climate successes such as the 2015 Paris Agreement. China's Ministry of Foreign Affairs declared that it was in the best interest of both countries to work together to address climate change.

It has taken some time for the world to recognize the potential harm of methane, a potent greenhouse gas. However, since the COP26 in Glasgow, many countries have agreed to a global commitment to reduce methane emissions, which can originate from oil and gas wells, coal seams, landfills, and livestock. In the lead-up to COP27 in Egypt, more nations, such as Australia, have joined the pledge, bringing the total number of countries to over 150. In the US, the Biden administration has implemented stricter regulations that require energy companies to take more steps to prevent methane leaks.