The defence sector’s journey to net zero
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With businesses focusing on their sustainability agendas in order to meet the UK’s 2050 net zero target, the defence sector is setting out on its journey to net zero within a complex and unpredictable landscape. Accounting for 50% of the UK Government’s emissions and 5.5% of all global emissions, defence at both state and industry levels must not only adapt, but directly address its climate strategies. There’s a balance to be struck, which lies between successfully embracing the green energy transition, and remaining prepared for the geopolitical shifts which this transition might forecast.
This year’s COP28 in the UAE saw delegates come together in their largest numbers to date, with a view to harnessing a critical moment in global transformative climate action. The backdrop to the Dubai conference however was one of growing geopolitical tensions, mirroring the tricky balance that the defence sector is facing in its own race to net zero.
By its very nature, defence is tasked to protect and operate on a vast scale and under the most sensitive of conditions. Climate change now presents a significant challenge to these objectives and its agents, and the sector must avoid the risks of inaction and land one step ahead of global threats in a sustainable way.
Progress on decarbonisation: organisations leading the way
The UK Ministry of Defence (MoD) has committed to its own 2050 net zero ambitions, broken down into three stages:
- Setting the foundations (2021-2025) - Work with suppliers to identify ways to reduce emissions through the equipment used and contractual conditions set by the MoD, and carbon targets run through yearly Defence Plans and disaggregated across MoD organisations.
- Minimising and fitting for the future (2026-2035) - Reduce emissions significantly, enhance future operational capability and build resilience into a sustainable supply chain by using the next Defence/Spending Review to secure emerging technologies.
- Harnessing the future (2036-2050) – Defence must harness novel technologies to build resilience and further reduce emissions, whilst delivering to the UN Sustainable Development Goals and answering the call for cleaner, efficient technology for both the commercial and civilian sector.
Industry leaders BAE Systems (BAE) have similarly identified sustainability as fundamental to their business performance, with the ambition “to serve, supply and protect those who serve and protect us”. BAE’s net zero roadmap seeks to deliver on decarb0nised operations and net zero emissions by 2030, and a net zero value chain by 2050 by:
- investing in renewable power;
- optimising energy efficiency across operations and manufacturing;
- switching to low-carbon alternative fuels; and
- reducing overall energy use.
By creating the following four key pillars through which to embed their core work, BAE have further demonstrated a commitment to environmental impact management, accountability and transparency, and robust ethics and governance:
- Addressing climate risks;
- Ideas, innovation and technology;
- Creating opportunity for people and communities; and
- Success through partnering.
Success through partnering is achieving positive results already, such as The Royal Navy adopting photo-voltaic roofing and battery storage in conjunction with BAE. This has resulted in its Portsmouth Naval Base reducing its carbon emissions from over 100,000 tonnes/year to roughly 35,000 tonnes/year and it remains on track to reach net zero at this base by 2040.
Legal progress
The legal landscape is expected to take a clearer shape over the coming decade as we enter into the operational phase of global net zero targets. Legal developments in the defence sector are largely more visible at the EU and global level and are being focused on more closely in light of this year’s COP28.
The European Parliament’s annual COP resolution has called for the closure of the military emissions gap and would position the bloc as a leader in decarbonisation if fully implemented. The resolution “stresses that all sectors must contribute to the reduction of emissions, including the defence sector, while maintaining operational effectiveness, and that the development of decarbonisation technologies and strategies in the defence sector should be accelerated”.
Further changes in legal reporting requirements are also being called for. The Greens-European Free Alliance notes that military emissions reporting to the United Nations Framework Convention on Climate Change (UNFCCC) is currently voluntary, and is calling for the EU to be active in changing this to a mandatory regime, in order to fully implement the Climate Change and Defence Roadmap in the EU.
Mandatory reporting processes are expected to encourage nations beyond the EU to endorse a similarly stringent regime in helping the defence sector to reach net zero. However, it remains to be seen what the UK’s position is on such requirements, and whether a unified approach on a global scale can be reached in Dubai.
The path ahead
As all eyes were on the UAE’s record setting COP28, the defence sector was at the forefront of many discussions, as both public and private sector organisations are grappling with geopolitical tensions across many parts of the world. The sector’s focus must inevitably prioritise its role to defend and protect, however the higher echelons within the industry have acknowledged the threat that climate change poses.
By its very nature as a carbon emitter, the defence sector must respond to calls for change and make sure to develop its capabilities in a robust yet energy efficient way. Results in the sector remain to be seen, and we at Bird & Bird will inform our clients of any changes that follows in COP28’s footsteps and advise on any action that businesses may be required to take.
