Industries Set Emission Targets Amid Accountability Concerns

As the globe ramps up the fight against climate change, industries worldwide are adopting emission intensity targets—reduction aims for greenhouse gas emissions per unit of output. The targets are now becoming an integral component of global climate action as they enable companies to minimize their impact on the environment while still fueling economic growth. But the process of cutting back emissions is complicated, and sometimes the efficacy of these targets comes under question based on poor follow-up measures in certain instances.

Emission intensity targets are quantitative standards industries set to reduce the rate of emissions relative to unit economic activity or production. They are crucial to making sure that economic growth within industries does not happen at the expense of the environment. Aiming for reduced emission intensity is an effort by companies to drive economic development away from environmental degradation, an imperative adjustment in the context of global climate change.

Progress in Key Sectors

A number of industries have made significant strides in both targeting and succeeding with emission intensity targets. One example is the Oil and Gas Climate Initiative (OGCI), a group of large oil and gas producers that aimed to reduce the carbon intensity of upstream oil and gas production. In 2020, the OGCI set a target to reduce emissions from 23 kg of greenhouse gases per barrel of oil or gas in 2017 to 17 kg by 2025. By 2023, the OGCI member companies had collectively reached an intensity of 17.9 kg per barrel, marking a 21% reduction since 2017. This progress demonstrates that large-scale industries can make meaningful strides in reducing their emissions if they set clear targets and take concerted action.

Likewise, the steel industry has made pledges to cut its emissions. Steel Dynamics, a top steel manufacturer in the United States, has set a goal to reduce emissions by more than 15% by 2030 for hot-rolled steel manufacturing. This is part of the overall initiatives within the steel industry to mitigate the environmental issues with steel manufacturing, which is one of the most emitting industries in the world. These measures are an indication of the industry's commitment to reducing its contribution to climate change.

The Science Based Targets Initiative (SBTi) Role

The Science Based Targets initiative (SBTi), an alliance of organizations such as CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), has played a central role in motivating companies to set emission reduction targets that are supported by climate science. The effort assists firms in setting targets that are aligned with the new science on climate and achieving the objective of keeping global temperature increase to well below 2°C above pre-industrial levels, with aiming to further reduce it to 1.5°C.

As of 2025, over 10,000 businesses are anticipated to have established or committed to establishing SBTi-approved science-based climate targets. This increasing business commitment is a sign of mounting awareness of the imperative for immediate action on climate change. By making their targets consistent with climate science, these businesses are ensuring that their efforts to reduce emissions are making a meaningful contribution to global climate objectives.

Regulatory Support: California's Leadership

Regulators and governments are also spearheading adoption of emission intensity targets. Within the United States, the California Air Resources Board (CARB) has taken the lead to draft rules helping drive emission cutting ambitions. The CARB issued guidance on finalized adjustments to the Low Carbon Fuel Standard, which is a regulation further reducing carbon levels in fuel transported in February 2025. This is one of the steps in California's overall approach to cutting greenhouse gas emissions throughout the economy in different sectors and making sure companies are helping to meet the state's climate objectives.

CARB's initiative to come up with climate policies sets the pace for other regions to emulate. Emissions regulations play a pivotal role in nudging industries towards actions on emissions as well as compelling them to answer for their impact on climate change. By framing a scenario conducive to or insisting on emission cutbacks, policymakers guide industries to adopt greener practices.

Accountability and Criticisms

Despite improvement by some industries, the implementation of emission intensity targets is not without problems. One of the significant criticisms lies in weak measures of accountability in certain instances. Some companies have been accused of setting targets in the absence of adequate monitoring or repercussions for missing targets. For instance, the investigations found that major polluters like Shell and Enbridge were given billions of dollars' worth of sustainability-linked loans with lenient conditions to meet environmental targets. This has sparked debate regarding the effectiveness of these financial products in actually delivering emission reductions and whether firms are being held accountable to meaningful targets.

Yet another has accused companies of keeping emissions under control in areas in their direct ownership or operation (Scope 1 and Scope 2 emissions), while ignoring emissions by customers or suppliers (Scope 3 emissions). Rio Tinto, one of the world's largest mining companies, has been under pressure to set greenhouse emission cuts among its customers that account for 95% of its total emissions. But the company contended that its shareholder agreements justified its approach to cutting emissions under its direct control, citing the challenges of cutting Scope 3 emissions.

Global Action and the Need for More Ambitious Policies

The uptake of emission intensity targets is highly variable by industry and geography. While some sectors have made good progress, others are behind, and more ambitious policies are needed to deliver real change. The European Union's "Fit for 55" package, for instance, aims to cut the EU's greenhouse gas emissions by 55% by 2030. This integrated approach to climate policy demonstrates the EU's leadership in the global shift to a low-carbon economy. Such ambitious policy structures are required to keep industries accountable and ensure that efforts towards emission reduction are on track.

Conclusion: The Path Forward

Intensity targets for emissions are key instruments for companies to help reach global climate objectives. Their success, though, hinges on the level of ambition in the targets, the quality of transparency in reporting companies' progress, and the strength of accountability mechanisms. Although industries have made good strides, the task of lowering emissions is quite a long way from coming to an end. In order to realize deep and long-term emission intensity reductions, firms need to keep innovating, cooperating, and being accountable for their footprint. With more robust policies, more precise targets, and greater transparency, sectors can contribute significantly to solving the climate crisis.