Looking Back at 2024, and Moving Forward: A Year End Reflection

Circular EconomyGovernmentCorporateFashionAIEnergy

Dec 31

31 Dec 2024

As the year draws to a close, we take a moment to review the significant sustainability developments of 2024 and anticipate what lies ahead. 2024 has been marked by persistent global geopolitical tensions, an increasing number of companies retracting their climate commitments, and a troubling rise in misinformation spanning climate issues and broader ideologies. These factors have further deepened societal divisions, presenting significant challenges to collective progress.

Despite the relentless stream of negative headlines, there are numerous reasons to remain hopeful. We have witnessed exemplary actions across various sectors: governments have enacted new (albeit sometimes unpopular) regulations, companies have upheld their sustainability pledges and continuously pursued innovative solutions, and individuals—from employees within large corporations to independent entrepreneurs—have been diligently working to ensure that consumers have access to more sustainable products. These efforts demonstrate a resilient commitment to fostering a healthier and more sustainable future.

We extend our heartfelt gratitude to all the ‘champions’ who have tirelessly persevered in the pursuit of a healthy planet and society. Their unwavering dedication inspires us every day. Below, we highlight some of the positive developments from this year and outline some of our highlights at Net Positive Labs.

Multilateral Coordination Faces Challenges, but Localized Regulations Gain Momentum

While global attempts to synchronize climate (and single use packaging) policies encounter substantial obstacles, localized initiatives are stepping forward as influential catalysts for sustainability.

A Contentious Future for COPs.

COP29, hosted in Baku—a fossil fuel economy—has sparked debate regarding the future effectiveness of these conferences. The event produced mixed outcomes. On one hand, developed nations committed to escalating their financial support for climate adaptation and mitigation in developing countries, pledging $300 billion annually by 2035. This marks a significant rise from the previous $100 billion target. However, this commitment still falls short of the substantial funding requested by developing nations. On the positive side, COP29 saw the completion of a framework for a global carbon market under Article 6 of the Paris Agreement, alongside the establishment of a UN oversight body. These developments represent crucial advancements in international climate policy, potentially enhancing the effectiveness and transparency of carbon credit trading on a global scale.

UK adoption of the Extended Producer Responsibility (EPR) for packaging.

The United Kingdom’s implementation of Extended Producer Responsibility (EPR) for packaging signifies a major step toward holding producers accountable for their waste outputs. This policy mandates that supermarkets and other businesses rapidly adapt their operations, potentially setting a global standard for sustainable practices. By requiring producers to manage the lifecycle of their packaging, the EPR framework is expected to drive innovation in waste reduction and the design of eco-friendly packaging solutions. It is encouraging to observe the UK aligning with other European nations, notably France, in advancing such progressive sustainability policies.

EU overhaul of the Sustainable Finance Disclosure Regulation (SFDR).

The European Union’s comprehensive revision of the Sustainable Finance Disclosure Regulation (SFDR) aims to make Environmental, Social, and Governance (ESG) categories more actionable and transparent. This overhaul underscores the necessity for regulatory frameworks to remain dynamic, continuously evolving to generate meaningful environmental and social impacts. By clarifying ESG criteria, the updated SFDR facilitates more precise and effective sustainability reporting. To navigate the ever-changing landscape of sustainable finance, it is imperative to maintain agility and dedication to refining these regulatory tools, ensuring they effectively steer investments toward more sustainable and responsible practices.

EU’s Battle Against Greenwashing

Governments worldwide are intensifying their efforts to combat greenwashing, ensuring that companies’ sustainability claims are both credible and substantiated. The European Union has taken a leadership role in this initiative by introducing stricter regulations aimed at standardizing green claims and enhancing corporate sustainability reporting. These enhanced regulations provide tangible data, offering companies valuable insights into where they can make meaningful improvements and seize new opportunities for sustainable development. By fostering greater transparency and accountability, the EU’s initiatives are paving the way for more genuine and effective sustainability practices across industries.

Global Adoption of Commissioned Renewable Energy Projects

Renewables.

In a notable shift, a significant majority of newly commissioned renewable energy projects at various locations globally, particularly in solar and wind, have become more cost-effective than their fossil fuel counterparts. This is bolstered by a record 81% of renewable additions in 2023 proving cheaper than fossil fuels, making a strong economic argument for renewables despite ongoing cost inflation pressures.

In the first half of 2024, renewables like wind and solar outpaced fossil fuels in EU electricity generation. Notable achievements include Spain generating over 50% of its electricity from wind and solar in May 2024, Poland sourcing one-third of its electricity from renewables for the first time, and Hungary setting records for solar production. Portugal has also revised its target to achieve 80% renewable energy by 2026, advancing its goal from 2030, reflecting a strong commitment to a sustainable energy future.

The shift also highlights broader strategic considerations. Commentators emphasize the importance of linking market advancements to governmental policies, such as subsidies and investments, crucial for maintaining the financial viability of renewable projects. Additionally, the strategic positioning of major players like China in controlling critical raw materials, such as lithium essential for batteries, underlines the geopolitical stakes in the global renewable shift.

To reduce dependency on such materials, Europe, Latin America, and other regions could (collectively) adopt strategies including diversifying supply sources, advancing recycling and circular economy practices, investing in alternative materials research like sodium-ion batteries, creating strategic reserves, fostering regional cooperation, supporting domestic industries, and implementing supportive policies. These approaches, demanding substantial investment and collaboration, would bolster their resilience in a sustainably powered global economy.

These regional and local regulations are not only bridging the gaps left by international negotiations but also fostering innovation and demonstrating tangible environmental improvements. By tailoring strategies to specific community needs and leveraging local expertise, these efforts are setting valuable precedents for broader adoption and inspiring similar actions worldwide.

Proactive actions and renewed commitments within the private sector

In recent years, numerous companies have quietly retracted their previous climate and sustainability pledges. However, amidst these challenges, we are witnessing commendable progress from various organizations that, despite the inherent difficulties and initial costs of transformation, remain dedicated to finding sustainable solutions.

Responding to the burgeoning demand for data centers, major technology giants—including Google, Meta, Microsoft, and Salesforce—have collaborated to launch The Symbiosis Coalition. Announced in May 2024, this initiative is focused on advancing nature-based carbon removal efforts. The coalition has committed to contracting up to 20 million tons of high-quality nature-based carbon removal credits by 2030, underscoring a significant collective endeavor to mitigate climate impact through innovative and sustainable practices.

In a similar vein, the Kering Group has made a remarkable pledge to achieve net-positive status by 2030. This commitment highlights that even sectors with substantial resource demands can set and attain ambitious goals for environmental regeneration. Kering’s renewed pledge serves as a clarion call to other corporations, encouraging them to push the boundaries of sustainable practices despite the backdrop of numerous, albeit quiet, withdrawals from earlier commitments.

Net Positive Labs had the privilege of partnering with a consortium of leading business groups in Saudi Arabia, uniting their resources, expertise, and assets to launch ventures dedicated to providing access to more sustainable and affordable consumer goods (more information below). This collaboration exemplifies the unwavering commitment and determination of organizational leaders to advance innovative solutions and drive meaningful progress in sustainability.

Nevertheless, despite these public declarations and initiatives, many companies are struggling to meet their energy reduction and sustainability targets. This discrepancy underscores the critical importance of monitoring actual outcomes rather than solely focusing on initial commitments, which often receive widespread acclaim and positive feedback. Ensuring that promises translate into tangible results is essential for fostering genuine progress towards a sustainable future.

Net Positive Labs’ Commitment to Contributing to Solutions

2024 has been a remarkable period for Net Positive Labs, marked by strategic collaborations with innovative companies and government organizations across various sectors. Our collective efforts have been instrumental in developing and implementing sustainable solutions that address some of today’s most pressing environmental challenges.

Carbon Markets

While the voluntary carbon market has experienced notable volatility in 2024, there are promising signs of its maturation. As a relatively new arena, the voluntary carbon market naturally faces and overcomes challenges, a vital process for refining and strengthening its foundational framework.

We are excited to play a pivotal role in establishing trusted, transparent, and data-driven carbon markets through our ongoing collaboration with cambium.earth. Cambium uses technology, forestry experience, regional knowledge, and a long-term commitment to combine, where it makes sense, forest development with other traditional economic activities such as livestock farming or timber production with the goal of having a tangible impact on global carbon capture objectives by designing sustainable ecosystems focused on reforestation and the generation of carbon credits.

Cambium’s Website

Circular Models in Saudi Arabia

Saudi Arabia has undergone a profound transformation in recent years, guided by the ambitious Saudi Vision 2030. Sustainability is a key pillar of this vision, as the country aspires to become a leader in multiple sectors by integrating sustainable practices. Our team has had the privilege of partnering with government organizations and local business leaders to introduce and implement circular models within the Kingdom.

We proudly launched Mustadam, our first circular venture, in collaboration with esteemed partners. Mustadam aims to prevent premature furniture disposal by providing individuals with access to high-quality, sustainable, and affordable options. This initiative not only supports waste reduction but also promotes the longevity and reuse of valuable resources, aligning with Saudi Arabia’s sustainability goals.

Mustadam’s website

Fashion

Fashion’s Mixed Progress The fashion industry saw both triumphs and setbacks. Regulatory measures like the EU’s waste management initiatives are promising, yet systemic issues such as supply chain scandals remind us how far we have to go. A versatile solution that can contribute positively to fashion waste, but also many other forms of waste, is our latest venture Cyclo.today, which has a circularity index of 97%, repurposing waste materials, and reducing CO2 emissions from furniture production by up to 50%.

Cyclo’s website.

Agriculture

This year marked a significant milestone for regenerative agriculture, with Indigo Ag’s programs successfully sequestering 1 million tons of CO2. This achievement highlights the potential of innovative farming techniques to tackle climate challenges and bolster local economies. At Net Positive Labs, we are committed to promoting sustainable practices within the agricultural sector. Stay tuned for more updates as we continue to explore and support pioneering initiatives. We are working with companies like CarbonIQ Technologies that present fascinating developments in this field, showcasing the dynamic nature of sustainable agriculture.

Construction

In 2024, the global construction industry advanced significantly towards sustainability, marked by a 30% increase in projects certified under green building standards such as LEED and BREEAM. This surge reflects a heightened industry commitment to reducing environmental impact through the use of sustainable materials and energy-efficient technologies. Notably, the implementation of recycled building materials rose by 25%, and energy efficiency in new constructions improved by 40%, helping to decrease the overall carbon footprint of the sector. Part of our activities focuses on promoting innovative solutions that ensure sustainable development and environmental stewardship in the built environment. We have exciting news to share coming into the new year that is closely linked to this.

Artificial Intelligence, a Catalyst for Sustainable Change

Whilst we continue to work on our projects, it is important to discuss the role of AI in the global transition to net positive value chains. The rapid advancements in AI technology have brought about a significant increase in energy consumption, underscoring the delicate balance between technological progress and environmental sustainability. Google's recent experiences exemplify this challenge. According to its 2024 Environmental Report, the company's greenhouse gas emissions have surged nearly 50% since 2019, primarily due to the energy demands of AI and data centers. Despite achieving improvements in data center energy efficiency, Google's overall electricity consumption has grown by 17% in the past year alone, highlighting the substantial environmental impact of expanding AI operations.

Despite its substantial energy footprint, AI's potential extends significantly into various sectors. It is particularly transformative in agriculture, where precision farming techniques optimize resource use, such as water and fertilizer, thereby enhancing sustainability. Yet, AI’s transformative potential reaches well beyond agriculture into sectors like logistics, manufacturing, healthcare, and urban planning, where it plays a crucial role in enhancing efficiency and sustainability.

In logistics, AI optimizes routing and load management, significantly reducing fuel consumption and minimizing carbon emissions. Advanced algorithms predict delivery routes and times, streamlining operations, and cutting down on unnecessary mileage, which not only saves energy but also reduces wear and tear on vehicles.

In manufacturing, AI contributes to substantial energy and waste reduction by refining production processes. Smart manufacturing systems use AI to monitor and adjust operations in real time, ensuring optimal energy use and significantly lowering the rate of defective products. This precision reduces waste material and energy consumption, which are crucial for sustainable practices.

Healthcare also benefits from AI, particularly in resource allocation and management. AI systems can predict patient inflows and optimize energy use in hospitals and clinics, besides reducing medical waste through better inventory management of medicines and supplies.

In urban planning, AI aids in designing more efficient city layouts that reduce energy usage through optimized traffic flows and enhanced public transport systems. Smart city technologies driven by AI improve waste management by predicting garbage collection routes and schedules, thus minimizing the operational footprint of public services.

Each of these sectors should leverage AI not just as a tool for innovation, but as a critical component in the push towards more sustainable and energy-efficient practices. These applications of AI demonstrate its capability to change industries for the better by making them more efficient and environmentally friendly. This dual role of AI as both a challenge and a solution in the environmental sector illustrates the complex dynamics at play as we navigate the path towards sustainable technological advancement.

Our Commitment to building a Net Positive World

A recent McKinsey study reaffirms what many have observed: younger consumers, particularly Gen Z and Millennials, are increasingly prioritizing sustainable consumption. However, the availability of sustainable options remains limited, and premium prices often make them unaffordable for many.

At Net Positive Labs, we are steadfast in our commitment to developing sustainable solutions, irrespective of the slowly evolving policy landscape. Both consumers and businesses demand more sustainable alternatives. While some perceive these options as costly, we view this as an opportunity to create economically viable solutions tailored to a growing and discerning market segment.

We actively collaborate with businesses, governments, family offices, and tech entrepreneurs to develop sustainable options. Our approach integrates a sharp business acumen with a dedication to sustainability, ensuring our solutions not only resonate with consumers but also align with broader stakeholder values. This mission goes beyond following trends—it is about actively shaping a future that embodies our collective ideals. Learn more about our impactful projects and our contributions by visiting our website.

We advocate for increased collaboration, innovation, and proactive action. Together, we believe we can drive transformative change across industries and pave the way for a truly sustainable future.

Let us maintain our collective momentum and spirits as we move forward.

Wishing everyone a net positive 2025.

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