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What is the carbon budget?

In lots of climate literature and discussion you&#8217;ll see reference to the carbon budget. But what actually is it? And, what does it have to do with you? In this article, we&#8217;ll unpack the concept of the carbon budget, discuss why it’s important, and explain how this budget has the ability to affect your daily life.

Budgeting is a handy tool used by many, to ensure we are on track and can sustain our livelihoods. Whether or not you use a budget, their overall premise remains the same &#8211; an accurate budget can be used for projections to help us make decisions about our present and future behaviour based on what we know about our current situation. 
Just like individuals, the earth’s system has its own carbon budget &#8211; a budget that gives us insight into the atmosphere’s threshold for carbon emissions over a period of time.
Exceeding this threshold would result in global temperatures <a href="https://climateactiontracker.org/global/cat-thermometer/" target="_blank" rel="noopener">increasing to dangerous levels</a>. This budget therefore enables us to change action to ensure that we meet favourable projected scenarios and effectively remain within this budget to sustain ourselves. Although the carbon budget applies globally, not all countries and industries are adhering to it &#8211; some don’t like the idea of budgeting at all, and <a href="https://wedocs.unep.org/bitstream/handle/20.500.11822/37004/EGR21_ZNZ.pdf" target="_blank" rel="noopener">others are not really taking it seriously</a>. 
Almost every country in the world has ratified the <a href="https://ecologi.com/articles/climate-emergency/2-minute-brief-what-is-the-paris-agreement" target="_blank" rel="noopener">Paris Agreement</a>, which compels governments to set nationally-determined targets targeted at limiting global warming to well below 2°C, or as close to 1.5°C as possible, compared to pre-industrial levels. These targets were established by the <a href="https://unfccc.int/" target="_blank" rel="noopener">United Nations Framework Convention on Climate Change</a> on the basis of projections of future climate impacts associated with different amounts of global warming. These projections inform the threshold of the volume of greenhouse gases (measured in carbon dioxide equivalent) which can be emitted into the atmosphere &#8211; or in other words, our carbon budget.  
The <a href="https://www.ipcc.ch/sr15/" target="_blank" rel="noopener">IPCC’s Special Report on Global Warming of 1.5 °C</a> (2018), which specifically deals with impacts of 1.5°C warming versus other scenarios, gives a clear warning message that the less warming we have, the less we are exposed to the unpredictable and severe impacts of climate change. To achieve this aim, the Report found that greenhouse gas (GHG) emissions would have to halve by 2030 and drop to net zero by 2050. It’s an ambitious aim, considering the amount of current emissions in the atmosphere and our reliance on fossil fuels, but it is certainly possible. It requires governments, industries, and households to collectively and continually reduce emissions and ultimately change behaviour.  
One of the mechanisms which has started working to give effect to the findings of the Special Report is the <a href="https://sciencebasedtargets.org/" target="_blank" rel="noopener">Science-Based Targets Initiative</a> (SBTi). The SBTi helps businesses align their behaviour with a 1.5ºC future by providing clearly-defined pathways for companies to reduce their GHG emissions. Pathway targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement. The SBTi is one of the leading initiatives that enables the private sector to ensure a reduction of their GHG emissions and to set a net-zero target in line with a 1.5°C future.

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What does the carbon budget mean for individuals?

Carbon budgets continue to be a popular approach to frame the challenge of keeping global warming to ‘acceptable’ levels because it gives us <a href="http://tool.globalcalculator.org/" target="_blank" rel="noopener">something tangible to visualise and work with</a>. We need the climate budget to inform our decision-making and behaviour at a governmental, industry, and household level &#8211; otherwise we have no concept of what informs our actions to reduce emissions. 
The carbon budget also has the ability to demonstrate the effect of inaction, as it utilises climate projections to determine future scenarios. The idea of what a 2ºC or 3°C  temperature increase would look like <a href="https://interactive.carbonbrief.org/impacts-climate-change-one-point-five-degrees-two-degrees/" target="_blank" rel="noopener">paints a dismal picture</a>, and in many ways, keeps us on track to avoid projected disaster scenarios. <a href="https://www.ipcc.ch/report/sixth-assessment-report-working-group-3/" target="_blank" rel="noopener">The IPCC Working Group 3’s contribution to the Sixth Assessment Report</a>, published in April 2022, states that there is still time to limit the global temperature increase below 1.5°C. However, scientists warn that the <a href="https://www.gov.uk/government/news/window-for-climate-action-closing-fast" target="_blank" rel="noopener">window of opportunity is rapidly closing</a> and the situation is getting more urgent. At the launch of the Report, UN Secretary-General António Guterres said it was a “file of shame, cataloguing the empty pledges that put us firmly on track towards an unlivable world”. According to the <a href="https://www.unep.org/resources/emissions-gap-report-2021" target="_blank" rel="noopener">Emissions Gap Report 2021</a>, which provides an overview of the difference between where GHG emissions are predicted to be in 2030 and where they should be to avert the worst impacts of climate change, the emissions gap still remains large. Compared to previous unconditional NDCs, collective new pledges for 2030 reduce projected emissions by only 7.5% &#8211; whereas a 30% reduction is needed for 2°C (and 55% reduction for 1.5°C). As a whole, <a href="https://wedocs.unep.org/bitstream/handle/20.500.11822/36991/EGR21_ESEN.pdf" target="_blank" rel="noopener">countries are falling short of meeting their new or updated NDCs</a> and announced pledges with current policies.
However, the carbon budget shouldn’t induce fear, it should inspire behaviour change. There is a misconception that if we exceed our carbon budget, we are unequivocally doomed. Imagery and advertising of a ‘climate apocalypse’ with a countdown clock springs to mind &#8211; let’s be clear that exceeding our carbon budget does not directly translate to the end of the world. However, the world it would result in would be increasingly unlivable as time goes on as warmer temperatures will bring worse impacts that threaten lives, livelihoods, and economies.

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Should the world’s carbon budget affect everyday decisions?

Absolutely. 
The carbon budget can be interpreted as a broad framework under which a huge amount of climate-related decisions are made. We make decisions every day that ultimately have an effect on our climate, whether we are aware of them or not. At a global level, countries who are signatories to the Paris Agreement have an obligation to limit their carbon emissions, and can do so by setting their own carbon budgets to ensure they remain on track with their commitments. 
These global carbon budgets can be further divided into national emissions budgets where countries set their own climate mitigation goals, such as the UK, who are <a href="https://www.gov.uk/guidance/carbon-budgets" target="_blank" rel="noopener">the first country to set their own legally binding carbon budget. </a>Governments are urged to go beyond their current Paris Agreement commitments, which if left unchanged, would result in an expected<a href="https://www.unep.org/interactive/emissions-gap-report/2019/" target="_blank" rel="noopener"> temperature rise to 3.2°C this century.</a> Collective decision-making will impact the speed at which we will approach the carbon budget’s threshold, which is why ensuring that future decisions, <a href="https://www.theguardian.com/environment/ng-interactive/2022/may/11/fossil-fuel-carbon-bombs-climate-breakdown-oil-gas#Code-red" target="_blank" rel="noopener">specifically in the energy sector</a>, are made with the carbon budget in mind is absolutely key.

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While the idea of sticking within the parameters of our carbon budget might feel like a complicated ask at the household and individual level, it’s ironically anything but complicated. The best thing you can do to ensure we stay within our carbon budget is actually quite simple &#8211; limit your greenhouse gas emissions as much as possible in your daily life. 
Support businesses that align with the goal of a decarbonised future. It may seem like an indirect link but where and how you use your money has a tremendous impact on emission reductions. Some simple ways to ensure your money is put to good use on a daily basis includes <a href="https://ecologi.com/articles/blog/environmental-activism-your-first-steps" target="_blank" rel="noopener">investing your money in ethical pension funds and banking with organisations</a> that ensure your money is not supporting the fossil-fuel industry. 
The solutions to the climate crisis already exist, it’s just about ensuring that our actions align with our intentions. Every fraction of a degree that our Earth’s temperature increases matters, so it’s no surprise that the small actions we take each day really add up. You can be part of the solution through a variety of ways; like <a href="https://ourworldindata.org/food-waste-emissions" target="_blank" rel="noopener">reducing food waste</a>, introducing <a href="https://www.bbc.com/news/science-environment-49238749" target="_blank" rel="noopener">plant-based alternatives</a> into your diet, being more <a href="https://ecologi.com/articles/blog/3-steps-to-creating-an-energy-efficient-home" target="_blank" rel="noopener">mindful of energy efficiency</a> in your home, and opting for public transport as much as possible. Once you’ve reduced your <a href="https://ecologi.com/articles/product/carbon-footprinting-at-ecologi" target="_blank" rel="noopener">carbon footprint</a> to as low as possible, it’s appropriate to offset remaining emissions. Ecologi offers a variety of <a href="https://ecologi.com/projects" target="_blank" rel="noopener">reforestation and verified carbon offsetting projects</a> to enable you to take climate action, while supporting natural ecosystems and local communities through tree planting initiatives. 
While it’s imperative that we embed emission reduction activities into our daily lives, government buy-in on the road to decarbonisation is key. Collective action is a powerful thing, and <a href="https://ecologi.com/articles/blog/environmental-activism-your-first-steps" target="_blank" rel="noopener">environmental activism</a> in the climate space is one of the means in which we can ensure that our governments are paving the way for a sustainable future that does not exceed the carbon budget. <a href="https://ecologi.com/articles/blog/activism-how-the-drops-inside-the-ocean-are-breaking-down-the-dam" target="_blank" rel="noopener">Advocate</a> for the future that is important to you and support political parties who share your vision of a decarbonised future. 
<a href="https://ecologi.com/plan" target="_blank" rel="noopener">Sign up today to take real climate action with Ecologi</a>.

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Hopescrolling: The good news timeline

It’s not all bad. While there’s a lot of negative news about the climate, let’s not forget the good stuff. Find climate wins, reasons to be hopeful and plenty of positivity in our good news timeline.

The good news timeline

Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

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Ecologi acquires Net Zero Now

In a landmark move set to reshape corporate climate action, we’re excited to announce that Ecologi, the UK&#8217;s most trusted climate action platform, has acquired <a href="https://netzeronow.org/" target="_blank" rel="noopener">Net Zero Now</a>, the sector-specific carbon measurement and reduction platform for businesses.
The combined entity operating under the Ecologi brand will create a single solution for industry climate leadership towards net zero. The integration combines sector-specific carbon measurement and reduction with world class verified climate projects that supports businesses wherever they are on their net zero journey.

<h2>The game-changing impact of this acquisition</h2>
The strategic acquisition solves two fundamental challenges in corporate climate action: businesses have been forced to choose between fragmented solutions and generic ‘one size fits all’ approaches that ignore crucial sector-specific needs. By combining Net Zero Now&#8217;s sector-specific protocol expertise with Ecologi&#8217;s platform funding top-tier climate projects, we&#8217;re creating a tailored and complete solution helping businesses lead their industries towards net zero.

Reduce emissions.
<ul>
<li style="font-weight: 400;" aria-level="1">Measure Scope 1, 2 &amp; 3 emissions with sector-specific industry GHG protocols</li>
<li style="font-weight: 400;" aria-level="1">Set short term and long term reduction target emissions aligned to SBTi</li>
<li style="font-weight: 400;" aria-level="1">Tailored reduction plans for sector-specific emissions pathways</li>
</ul>
Restore our planet.
<ul>
<li style="font-weight: 400;" aria-level="1">Compensate for unavoidable emissions as you reduce them through 
funding verified, high-quality carbon avoidance and removal credits</li>
<li style="font-weight: 400;" aria-level="1">Contribute to global climate goals by funding climate Impact Funds for 
beyond value chain mitigation and/or as part of your products &amp; services</li>
</ul>
Report on progress.
<ul>
<li style="font-weight: 400;" aria-level="1">Corporate sustainability standards e.g. CSRD, SECR, SBTi, CDP, B Corp</li>
<li style="font-weight: 400;" aria-level="1">Sector specific standards e.g. Accountancy, Hospitality, Public Sector</li>
<li style="font-weight: 400;" aria-level="1">Custom climate impact reports and embeddable dashboards</li>
<li style="font-weight: 400;" aria-level="1">Communications toolkit for board and stakeholder engagement</li>
</ul>

Climate leadership starts here

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Neil Ross Russell, Managing Director of Net Zero Now, said:
<blockquote>Businesses want to take climate action, but they want to know they’re doing it right and what’s right for a restaurant business is not the same as what’s right for an accounting firm.  They need industry-specific guidance and clear pathways to climate leadership. By joining forces with Ecologi, we&#8217;re creating a platform that allows us to provide credible, simple and affordable, sector-specific, end-to-end climate solutions for businesses in our existing sectors and collaborate with industry partners on new sector-led solutions.</blockquote>

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The acquisition aligns with Ecologi&#8217;s mission to accelerate business climate action and grow our 24,000 strong customer base. Established sector protocols including hospitality and professional services will be the initial focus with plans to expand across additional industries throughout 2025.
With organisations under increasingly complex stakeholder and industry compliance demands for environmental accountability, this end-to-end solution also ensures streamlined reporting, monitoring progress, supply chain transparency, and voluntary disclosures. This transforms business leaders into climate leaders with the confidence to tackle their climate commitments head-on, communicating and meeting critical regulatory requirements like SECR, CSRD and SBTi.

<h2>More about Net Zero Now</h2>
Founded in 2021, Net Zero Now has developed a proprietary sector-led approach, which combines climate expertise alongside the sector knowledge and experience of relevant industry bodies, industry influencers and larger businesses to reach a consensus around what Net Zero means in practice for businesses in each sector. To date, the company has measured and validated 1.8 MtCO2e lifetime emissions supporting more than 50+ leading brands including Coca Cola Europacific Partners, L&#8217;Orèal, Heineken, Pernod Ricard, Subway, Hard Rock Cafe, Adnams, Edgbaston and James Cowper Kreston.

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Case studies

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4 hospitality companies leading the way on climate action

Sustainability is no longer a nice-to-have in the hospitality industry — it&#8217;s a business necessity. With increasing regulatory pressure, shifting customer expectations, and the growing impact of climate change, hospitality businesses are finding that taking action isn&#8217;t just about responsibility—it&#8217;s about resilience. This is particularly evident as 70% of Brits are now actively trying to live a more sustainable lifestyle (Nutritics, 2024), and 44% say sustainability is important in their choice of venue to visit (Morning Advertiser, 2023). From tackling food waste to cutting carbon emissions, the sector is facing both challenges and opportunities to drive meaningful change.
At the heart of this transformation is the food system. The hospitality industry relies on farming—a sector responsible for nearly 20% of global greenhouse gas emissions and one that is increasingly vulnerable to climate disruption. Rising temperatures, unpredictable weather, and supply chain instability are already affecting food availability and costs, making sustainability not just an ethical priority but a commercial imperative. This is reflected in consumer behavior, with 47% of consumers wanting more information about carbon footprints on menus, and 41% saying this information would influence their order (CGA Strategy, 2023).
Fortunately, forward-thinking hospitality businesses are stepping up, driven by clear market demand—34% of UK pub and restaurant goers are prepared to spend more in venues with strong sustainability credentials, increasing to 47% for Gen Z and Millennials (Sustainability Beat, 2023). This generational shift is significant, with consumers aged 18-34 being nearly twice as likely to pay more for sustainability than those aged 55+ (WaterAid, 2023).
As the food and beverage industry awakens to its environmental responsibilities, and with climate change threatening to fundamentally disrupt global food security, restaurants and food service enterprises are stepping up to take meaningful climate action. These pioneering businesses are demonstrating how sustainability can enhance business performance while making a positive environmental impact, even as they navigate the unique challenges of being both a contributor to and victim of climate change.
Read about four hospitality companies that are championing climate action, and explore how they are turning environmental challenges into business opportunities.
Whether it&#8217;s engaging employees, measuring carbon footprints, or developing new sustainable service offerings, these venues are setting the standard for a greener future in hospitality.
<ol>
<li>Hawksmoor: Leading Sustainability in Fine Dining</li>
<li>Freemans Event Partners: Pioneering Sustainable Event Catering</li>
<li>Lisini Pub Co: Family Legacy Meets Sustainable Innovation</li>
<li>The Assemblies: Pioneering Sustainable Hospitality in Bristol</li>
</ol>

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<h2>Hawksmoor: leading sustainability in fine dining</h2>
Key Improvements:
<ul>
<li> Achieved B Corp certification in September 2022</li>
<li>Comprehensive review of operational sustainability across all locations</li>
<li>Implementation of energy reduction initiatives</li>
<li>Enhanced waste management systems</li>
<li>Water conservation measures</li>
<li>Integration of sustainability into staff training programs</li>
</ul>
Hawksmoor&#8217;s journey exemplifies how restaurant groups can lead in sustainability within the hospitality sector. Their comprehensive approach includes setting ambitious net-zero targets for 2030 while focusing on immediate operational improvements. The restaurant group&#8217;s commitment is evidenced by their systematic review of day-to-day operations across their locations in London, Manchester, Edinburgh, and New York. What sets them apart is their holistic approach to sustainability: examining energy usage, waste management, and water consumption while maintaining their reputation for quality dining. Their structured approach to employee engagement includes a two-day intensive induction program that emphasises sustainability, making it a core part of their culture.
Ellie Besley-Gould, Head of Purpose at Hawksmoor, said:
<blockquote>We&#8217;ve been heavily involved with the Sustainable Restaurant Association since about 12 years ago&#8230; It&#8217;s a really important area for us to be stepping up the work in, looking at how we can inspire change.</blockquote>

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<h2>Freemans Event Partners: pioneering sustainable event catering</h2>
Key Improvements:
<ul>
<li>Achieved 38.4% reduction in emissions compared to projections</li>
<li>Implemented innovative &#8220;Zero Zone&#8221; testing area</li>
<li>Introduced shuttle buggies for reduced transport emissions</li>
<li>Deployed hybrid power generators</li>
<li>Established carbon menu labelling</li>
<li>Enhanced waste management through compostable solutions</li>
</ul>
Freemans Event Partners&#8217; journey demonstrates how large-scale event catering can embrace sustainability without compromising service quality. Their innovative approach at the British Grand Prix showcases their commitment to reducing environmental impact in high-pressure environments. The company&#8217;s dedication is evidenced by exceeding their initial 5% emissions reduction target and implementing a groundbreaking &#8220;Zero Zone&#8221; area for testing new sustainability initiatives. What sets them apart is their data-driven approach to sustainability: measuring and analysing emissions across all aspects of their operation, from food stalls to logistics and waste management.
Richard West, Sustainability Manager at Freemans Event Partners, said:
<blockquote>Through partnering we&#8217;ve realised that collaboration is key to making lasting and impactful environmental changes in the events catering industry. The process has been much more straightforward than we thought it would be and we look forward to setting even bigger reductions targets as we go forward.</blockquote>

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<h2>Lisini Pub Co: family legacy meets sustainable innovation</h2>
Key Improvements:
<ul>
<li>Reduced scope 1 and 2 emissions by 48% through renewable electricity</li>
<li>Won the Flor de Cana Rum Sustainability Award</li>
<li>Achieved lowest electricity demand in 10 years</li>
<li>Implemented LED lighting and sensor systems</li>
<li>Launched biodiversity project at Dalziel Park</li>
<li>Developed sustainable kitchen practices and menu innovation</li>
<li>Created venue-specific green teams</li>
</ul>
Lisini Pub Co&#8217;s journey demonstrates how family-owned hospitality businesses can transform their environmental impact while preserving their heritage. Their comprehensive approach combines traditional Scottish hospitality with modern sustainability practices across their venues, including the historic Angels hotel in Uddingston. What sets them apart is their innovative approach to sustainability: implementing competitive green teams across venues, achieving dramatic emissions reductions, and maintaining their commitment to quality service. Their structured approach includes both operational improvements and employee engagement, making sustainability a core part of their 45-year family legacy.
Siobhan Edwards, Director Lisini Pub Group, said:
<blockquote>It&#8217;s not until we&#8217;ve been working in the last year that we&#8217;ve really truly understood our carbon footprint. It&#8217;s the right thing to do, it&#8217;s the right thing for our customers, for our planet, for the environment, and actually it saves us money at the same time.</blockquote>

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<h2>The Assemblies: Pioneering Sustainable Hospitality in Bristol</h2>
Key Improvements:
<ul>
<li>Established 100-mile radius local sourcing policy</li>
<li>Implemented full venue LED lighting systems</li>
<li>Introduced reusable cups for music events</li>
<li>Developed nose-to-tail food waste reduction policy</li>
<li>Created vegetarian menu options to reduce emissions</li>
<li>Enhanced supplier partnerships for sustainability</li>
<li>Achieved an impressive 3-star rating in the Food Made Good Standard, scoring 92% overall and 91% specifically in environmental practices</li>
</ul>
The Assemblies&#8217; journey showcases how urban hospitality venues can lead in sustainability while building strong community connections. Since their inception in 2009, they&#8217;ve demonstrated that local sourcing and environmental responsibility can coexist with business success. What sets them apart is their data-driven approach to sustainability: analysing carbon ratings, implementing local sourcing policies, and creating innovative menu solutions. Their comprehensive strategy includes everything from sound system upgrades to waste reduction initiatives, making sustainability integral to their operation.
Anna Blightman, Brand Marketing Manager, said:
<blockquote>Something that our partnership has allowed us to do, is lay all the data out on the table so that we can actually look at it, and stand to analyse it and understand where we can make changes. If we don&#8217;t start now, when will we start?</blockquote>

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As these leading hospitality companies show, meaningful climate action can drive significant business benefits—from stronger customer and employee engagement to enhanced brand reputation and risk mitigation. By taking a thoughtful, transparent, and impactful approach, businesses can pave the way for a sustainable future.
Ready to take the lead in climate action? Book in a 30 minute discovery call with our Hospitality sector experts and find out more about partnering with Ecologi to measure your emissions, set reduction goals and fund high-quality climate action on the road to net-zero.

What is the carbon budget?