ESG

ESG Policy & Strategy

Global Warming Threshold Crossed Again: National Targets Set for 2035, Carbon Budget at 4 Years

In August 2026, the global average temperature was 1.65℃ higher than pre-industrial levels, exceeding the monthly average 1.5℃ threshold for the first time since November 2025. Fossil fuel CO₂ emissions in 2025 reached a record high of approximately 38.1 billion tons, leaving a remaining 1.5℃ carbon budget with a 50% probability of about 170 billion tons, equivalent to roughly four years at current emission rates. Latest UNFCCC analyses indicate that implementing new NDCs will reduce 2035 emissions by approximately 12% compared to 2019, falling short of the roughly 60% reduction required for the 1.5℃ pathway. South Korea is pursuing a 2035 reduction target of 53 to 61%, a 2030 target of 100 GW in renewable energy expansion, and a 50% increase in paid allocation for power sector emission allowances. While SBTi participation and clean energy investments are growing, global financial alliances are winding down or restructuring, placing companies in an environment where they must simultaneously manage regulations, power supply, and carbon costs.