Decarbonization –
The Transition Towards
Low Carbon Economy
Unlocking Economic Opportunities Through Decarbonization
Unlocking Economic Opportunities Through Decarbonization
The world is quickly warming and if global temperatures are to be capped at 1.5°C to attain net zero goals by 2050, as per the 2015 Paris Agreement, then rapid Decarbonization is the only way to go.
Decarbonization entails reducing greenhouse gas (GHG) emissions produced by the combustion of fossil fuels. This can be facilitated with the adoption of renewable energy sources such as wind, solar, hydropower, geothermal, and biomass. Improving the overall energy efficiency of vehicles and industries is another way to meet emission targets, improve air quality, and maintain optimum global temperature. Given that air pollution causes over seven million premature deaths worldwide, reducing it will have a significant influence on public health.
Innovations such as AI, IoT, SaaS solutions and cloud-based services provide accurate, quick, and reliable data to engineers so that they can make precise measurements, analyze system behavior, and achieve higher efficiencies. The U.S. Department of Energy recommends minimizing energy waste and upgrading aging facilities for cost-effective decarbonization across light industry manufacturing plants. Therefore, the pillars of decarbonization are improving energy efficiency, electrification, low-carbon fuels, feedstocks, and energy sources (LCFFES), and carbon capture, utilization, and storage (CCUS).
To achieve decarbonization, all aspects of the economy must be considered and transformed right from how energy is generated, to how we produce and deliver goods and services. It may all seem cumbersome, but decarbonization is not unreachable. In fact, it is getting cheaper than ever to go green, thanks to government subsidies and technological innovations. Companies going on the sustainability path are not only doing the right thing for the planet, but they are doing the right thing for their bottom line.
Renewable energy resources can help minimize the global carbon footprint, but they rely on the weather and other natural elements that are beyond man’s control. Production can’t keep up with demand at all times. The storage of surplus power for later use improves the overall efficiency and reliability of these systems. Electro-thermal energy storage (ETES) systems, Battery energy storage systems (BESS), Liquid air energy storage (LAES), and Compressed air energy storage (CAES) are some of the latest carbon-capturing technologies available in the market. The costs of installation and operation of new renewable energy projects are getting lower than those of coal and natural gas plants by about 10% every year. Switching the global economy to renewable energy might generate savings of over USD 11 trillion by 2050, as per projections.
In November of 2022, world leaders joined forces at the United Nations climate summit called COP27 to commit to creating a more sustainable future on a global scale. At the granular level, this can be achieved with businesses functioning as per ESG standards and putting a framework in place that enables the demonstration of due diligence. Consumers, investors, and employees are increasingly demanding climate responsibility and accountability from organizations. They are being pressurized to disclose and regulate their emissions and targets. Proactive businesses that are preparing themselves for this transition to clean energy will reap financial rewards in the near term, but companies that aren’t investing in decarbonization or have scaled back on efforts to combat climate change will be stuck in reactive mode. Even though organizations do have the capital and resources to achieve a sustainable transition, the level of mobilization necessary to achieve this is still not in place.
Various nations have embraced decarbonization efforts, and more than 150 governments have submitted plans to cut carbon emissions by 2030.
The global economy is marching towards a zero-carbon future. It is high time businesses seized this golden opportunity. Reducing harmful emissions will not only curb global warming, but it will bring extreme weather events back under control and ensure that we do not pass a tipping point from which there won’t be any recovery. For the sake of future generations, it’s imperative that we decarbonize now.
Copyright © 2024 Research Nester. All Rights Reserved.
