Nowadays, you will come across many words associated with decarbonization and sustainability. Among them, some are overused buzzwords whilst some others are meaningful descriptions of policies and new technologies that can help the planet.
The process of reducing carbon intensity and the attempt to decrease the percentage of greenhouse gas emissions that are produced by fossil fuels is known as decarbonization. However, in general, this includes decreasing the CO2 per unit of energy produced. To meet the global temperature standards that have been set by the Paris Agreement, reducing the amount of carbon dioxide occurring due to power generation and transport is quite important (“What is De-carbonization?”, 2022).
Efforts have been made by many countries to decarbonize. And also, plans to reduce carbon emissions by 2030 have been submitted by more than 150 governments. Some of this includes Paris’ pledge to ban vehicles that run on diesel from 2040. More renewable energy sources are also being implemented widely, and now produce a third of all power capacities worldwide.
“Rapid decarbonization is becoming more and more crucial as the transport sector becomes electrified thus leading to an increase in the demand for electric power. Therefore, energy efficiency is becoming a priority to meet emission targets and improve global temperature and overall air quality” mentioned Mr. Jonathan Dery, President & Co-Founder of Vivo Green.
According to research, we are currently heading towards a 3°C increase if we don’t change our ways. If this occurs there is a high chance that cities such as Shanghai, Miami, Osaka, and Rio de Janeiro would sink underwater due to global warming. This would lead to over 275 million people worldwide relocating to escape the flood (“What is de-carbonization, and why do we urgently need it?” 2022 edition Jonathan Dery).
However, with proper decarbonization, this is not the case. According to research, decarbonization in the US alone has had a net positive impact on the overall economy in terms of GDP, jobs, as well as income per household. With reference to different scenarios, the economy could add over a million jobs by 2030 and almost 2 million jobs by 2050. Some economic sectors, in particular, are said to be large beneficiaries of these job gains. This includes construction and the manufacturing sectors that are most likely to provide the required equipment, parts, and final goods for the technologies of deep decarbonization (“The Economics of De-carbonization in the U.S. | Climate Solutions”, 2022).
There will be substantial upfront costs of meeting temperature targets. According to research and estimations, $119 trillion would be required to be spent on low-carbon technologies between 2015 and 2050. But another $29 trillion will be required to help meet the targets.
Despite the costs, failure to act would lead the world to pay out an even higher figure in healthcare costs as well as other economic costs related to climate change including flood damage or drought. Therefore, the total cost for decarbonization could end up costing between 2 and 6 times less than what failing to decarbonize could cost.
Moreover, the new jobs (that will replace the jobs lost in fossil fuels that include those in renewable fuel industries), as well as opportunities that will be created between 2015 and 2050, can add $19 trillion to the global economy. And also an increase in the global GDP by 0.8% in 2050 can be expected, thanks to added stimulus from the low carbon economy.
However, achieving a cleaner future is not an easy task. It needs proper planning, effort as well the will to see beyond short-term goals while keeping the main focus on the benefits of long-term goals. But once you get it right the results will be considerable (“3 ways de-carbonization could change the world | Drax”, 2022).
Nevertheless, this is where decarbonization service providers come in. Decarbonization service providers help companies/businesses and governments to decrease greenhouse gas emissions. They combine emissions, technology, and supply chain expertise to identify where the impact is, gather supplier solutions, and thereafter deliver the gains. For businesses, this is a kick start and acceleration of supply chain decarbonization. This consists of 4 different steps that Vivo Green offers:
- Structuring
At this point, decarbonization service providers will structure rapidly evolving initiatives, policies, innovations, opportunities, and challenges that will likely be encountered on the decarbonization journey.
- Guiding
Secondly, the service providers will focus on establishing goals for the long term as well as short term time spans to help achieve technical as well as economic carbon milestones.
- Dealing
At this stage, the main focus will be on delivering new business models with technical possibilities within the business that will help to stay agile and profitable in the long term.
- Performing
The last stage guides the expenditure from the board level to the field. Not only does hard data insights lend wisdom but it also serves the spirit of accountability and collaboration by enhancing progress sharing in decarbonization with the stakeholders of the business.
If the above steps are followed carefully by a business as guided by the decarbonization service providers, conducting decarbonization won’t be a difficult task. In addition, less carbon-intense and more energy-efficient sources as mentioned above are some of the most prominent ways decarbonization can be achieved. Even though the task may seem difficult, expensive, and time-consuming, achieving decarbonization is crucial if we are to see a bright future ahead. So get it right and the results will be considerable.
Website: vivo-green.fr
LinkedIn: @vivo-green @Jonathan Dery
Twitter: @JonathanDery_ @VivoGreenFR