What is Decarbonisation?

Decarbonisation refers to the process of mitigating climate change by significantly reducing or completely eliminating emissions of carbon dioxide (CO2) and other greenhouse gases (GHG) from the atmosphere. To prevent the planet from warming by more than 1.5°C (2.7°F) above pre-industrial levels, several countries have set themselves the goal of net-zero greenhouse gas emissions by 2050. This state occurs when the amount of emissions emitted is balanced by the equivalent amount removed from the atmosphere. Achieving net zero emissions requires intensive decarbonisation efforts.

Decarbonization mainly includes the drastic reduction of greenhouse gas emissions from human activity. Residual emissions that cannot be completely removed must first be identified and then removed from the atmosphere. The term "decarbonization" covers all types of greenhouse gases, including CO2, methane, nitrous oxide, sulfur fluoride, perfluorocarbons and hydrofluorocarbons. Their effectiveness is measured by the global warming potential expressed in CO2 equivalents.

Why is decarbonisation important?

With the increasing amount of greenhouse gases in the atmosphere, the planet is warming more and more, which increases the intensity of climate change. In 2015, nearly 200 countries committed to the Paris Agreement to limit global warming to less than 2 °C (3.6 °F) above pre-industrial levels, aiming for a maximum increase of 1.5 °C.

According to the United Nations (UN) Emissions Gap Report, it is essential to significantly reduce global greenhouse gas emissions. To limit the global temperature rise to 1.5°C, emissions must fall by 45 % by 2030 compared to current levels. After 2030, emissions must continue to decline rapidly to avoid exhausting the remaining carbon budget.

Reducing global emissions through deep decarbonisation is key to reversing the trajectory of human-induced climate change.

Decarbonization strategies

Organizations choose their decarbonization strategies according to business needs, existing opportunities and feasibility.

Key strategies include:
– Improvement of operational efficiency
– Electrification
– Transition to low-carbon energy sources
– Reduction of emissions in the supply and customer chain (scope 3 emissions)
– Solving residual emissions

Improving operational efficiency

Energy efficiency is key. Energy waste is eliminated and opportunities to increase efficiency are identified. Performance monitoring software helps identify power consumption issues. Energy efficiency should be taken into account when modernizing equipment.

Electrification

It replaces technologies using fossil fuels with electricity. Examples include heating, cooling, ventilation and transportation.

Transition to low-carbon energy sources

For example, organizations can install renewable energy sources such as solar panels or enter into contracts to purchase renewable energy. Carbon-neutral energy sources include wind, solar, hydropower and biomass.

Solving residual emissions

Removing all greenhouse gases is difficult, so technologies are needed to remove residual emissions. Technologies such as carbon capture and storage help capture emissions before they are released into the atmosphere and store them safely.

Setting and monitoring decarbonisation targets

Reducing greenhouse gas emissions is a key part of sustainability and ESG (environmental, social and governance) strategies. Steps for setting and tracking decarbonisation targets include:

– Understanding impact and establishing core values.

Organizations must understand the impact of their operations and establish core values to measure their progress. Data is essential for these steps, so it is important to strategically decide which data to collect and how to manage it.

– Goal setting and public commitment

Determine specific goals and a time frame for achieving them. Examples can be supplying 100 % operations with electricity from renewable sources or achieving zero greenhouse gas emissions.

– Implementation of measures

Begin the realization of goals by translating the company's strategic vision into concrete steps. Identify the data needed to measure progress and establish mechanisms for reporting it.

– Performance monitoring and reporting

Organizations often choose to report on their environmental performance. Reporting requires a reliable data base to support different themes and frameworks.