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As global leaders gather at COP29 in Baku, an Oxford University study, created through pro-bono collaborations with 48 top law firms worldwide, offers what it calls “the most detailed view yet of how key economic rules are aligning—or not—to climate goals.”
Even as the incoming Trump Administration in the U.S. signals potential rollbacks on climate policies, the worldwide shift toward binding net zero mandates persists. Since 2023, 21 jurisdictions, from the EU to China and South Africa, have rolled out new regulations, setting the stage for far-reaching corporate compliance obligations.
In the EU, for example, companies are now legally required to develop actionable plans detailing their path to net zero. Brazil has introduced regulations mandating that public companies and financial institutions disclose their carbon emissions and the climate risks they face. Similar rules are emerging in California, China, Turkey, and the UK, where government contractors bidding on projects over £5 million must demonstrate net zero commitments.
This report is pivotal as the world grapples with an "implementation gap" between climate promises and measurable outcomes. While net-zero pledges continue to surge—a 23% increase among companies in the past year alone—global emissions have yet to follow suit, continuing their upward trend. As nations prepare to submit updated pledges under the Paris Agreement, the focus is shifting toward embedding these high-level targets in tangible, enforceable policies.
Meanwhile, the specter of a second Trump Administration looms, promising to dismantle U.S. climate regulations. This potential reversal underscores the importance of state-level and global policies to ensure steady progress toward net-zero despite domestic shifts in the U.S. political landscape.
“Nations and companies have made ambitious pledges, but pledges alone won’t prevent catastrophic climate change,” says co-lead for the new survey Professor Thomas Hale of Oxford’s Blavatnik School of Government. “We need legally enforced rules – imposed by governments on themselves and on companies operating in their jurisdictions. The good news is there’s been huge recent growth in such rules. Next, we need to close gaps.”
“To close gaps in climate policy, we need to be able to see and understand them,” says co-lead Dr. Thom Wetzer, Associate Professor at Oxford’s Faculty of Law and Oxford’s Smith School. “Our open-access Climate Policy Monitor will allow everyone to evaluate the ambition, comprehensiveness, and stringency of climate regulations as they evolve over time.”
Set to launch on November 13, Oxford's new Climate Policy Monitor will serve as a dynamic public tool, rigorously evaluating climate regulations across 250+ data points in three core areas:
1. Climate-related disclosure: Companies and financial institutions must publicly disclose their climate risks, emissions, and mitigation policies.
2. Transition planning: Mandates that companies outline specific steps for aligning with climate goals.
3. Public procurement: Directives aligning government spending—which constitutes roughly 10-15% of national GDP and spans sectors from vehicle fleets to infrastructure projects—with climate objectives.
Supporting the work of the UN Taskforce on Net Zero Policy, launched at COP28, the Climate Policy Monitor’s insights will feed into a major report presented in Baku, amplifying efforts to sync policy tools with climate targets. Catherine McKenna, former Canadian Environment Minister and head of the UN's Net Zero Integrity task force emphasizes: “Voluntary efforts are important but only get us so far. By weaving net zero into the rules that shape the economy, policymakers can level the playing field and drive not just pledges but big cuts in emissions.”
The Climate Policy Monitor highlights a surge in regulatory efforts among major economies but also reveals significant gaps.
On disclosure, 17 jurisdictions now require companies to report their full value chain emissions—often referred to as ‘Scope 3’ emissions. Additionally, countries like China, Japan, Turkey, Australia, and the U.S. have introduced regulations that hold companies accountable for their global environmental impact, setting compliance requirements for international suppliers.
Transition planning rules designed to counter ‘greenwashing’ are also rising. These mandates ask companies to specify actionable steps for reaching their climate targets. However, enforcement remains limited; only about 20% of these regulations require companies to follow through on their plans.
Government procurement aligned with climate goals has also made substantial progress. Since 2023, 17 jurisdictions have adopted new standards for climate-conscious spending, collectively covering $9.7 trillion in procurement. However, the lack of standardized approaches for implementing these rules raises questions about their true impact.
The Monitor’s extensive, open-access data—available at climatepolicymonitor.ox.ac.uk—pinpoints specific areas where regulatory frameworks could be strengthened to foster a fair, supportive environment for achieving net zero. Plans are in place to expand the Monitor’s scope to additional sectors and regions in the coming year.
Helena Viñes Fiestas, Commissioner of the Spanish Financial Markets Authority and co-chair of the UN Taskforce on Net Zero Policy said: “The urgent need for a meaningful and systemic response to climate change has never been more evident. Clear and ambitious net zero rules are essential to unlock the investments required for the transition and help regulators reduce risk. While early progress is encouraging, it is insufficient to limit global warming to 1.5 degrees. We must act decisively and swiftly to capitalise on economic opportunities, mitigate risks, and drive the world toward a net zero future.”
Professor Thomas Hale of Oxford University’s Blavatnik School of Government, co-lead for the Monitor, said: “There’s been huge growth in rules around net zero in just the last year, not just in Europe but in jurisdictions like South Africa, Turkey, and California. While the incoming Trump administration may try to roll back federal policies, firms operating around the world will be looking at their growing global regulatory obligations.”
Dr. Thom Wetzer, Associate Professor of Law and Finance and Director of the University of Oxford’s Sustainable Law Programme co-lead for the Monitor, said: “Net zero targets are becoming embedded in the global economic architecture. Following a groundswell of voluntary net-zero targets by companies, regulators are increasingly introducing mandatory rules underpinned by widely endorsed standards. Globally operating businesses will have to navigate that reality, even as the Trump administration may attempt to reverse US climate policy.”
Amanda Carpenter, Director of The Legal Charter 1.5, said: “The Monitor data is of great consequence to the legal sector. Lawyers both hold a crucial position of influence with clients and will also be present in key decision-making and legislative processes that shape the transition to net zero. We are delighted that the One Million Hours initiative could facilitate the pro bono work to support the Climate Policy Monitor.”
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