Decarbonization: Next 3 years crucial for net-zero success – experts reveal

The race towards a green future is on, but the question remains: What can industries do to achieve net-zero success? The answer is collaboration.

A recent episode of the ‘Built for Change’ podcast – hosted by Los Angeles-based journalist Elise Hu and Indigometrics CEO Josh Klein – explores how different sectors can work together to achieve decarbonization goals.

The conversation included industry experts Stephanie Jamison, Global Resources Industry Practices Chair and Sustainability Services Lead at Accenture; and Emily Shults, SVP and Chief Business Officer for Low Carbon Solutions at Sempra Infrastructure.

Let’s look at how light and heavy industries are joining forces to drive crucial decarbonization efforts.

Light industries for net-zero emissions

Jamison emphasizes the interconnected nature of decarbonization efforts, and that industry leaders “cannot do it alone”. 

She says each industry they looked at – oil, gas, and power, heavy industry and light industry – are all “reliant on each other to achieve their decarbonization goals.” 

Jamison also describes the current situation as a “vicious cycle of inaction.” This cycle can only be broken once light industries develop green products that “attract a green premium” – a higher price tag for low-emission products.

This premium product can then fund decarbonization efforts up the supply chain.

Concept clarified: Light industries use less raw materials and energy. Think electronics manufacturing, textile production, food processing, etc. 

Heavy industries, on the other hand, require significant energy input: Steel manufacturing, chemical production, mining, etc. 

The role of heavy industries in decarbonization

The ‘premium product’ strategy from light industries will only work if heavy industries respond to the demand for green materials. In addition, power providers must deliver affordable, low-carbon power at scale. 

Sempra Infrastructure’s Emily Shults explains why this collaboration is important: “We have to collaborate to be successful because not one company is going to be able to do it on our own.”

There are also several technologies that could add to the decarbonization transition: 

• E-natural gas.
• Clean hydrogen.
• Carbon capture.

E-natural gas: 

E-natural gas is a carbon-neutral synthetic gas – also known as synthetic methane or renewable natural gas – produced from renewable hydrogen and recycled carbon dioxide.

It’s produced through electrolysis using renewable electricity, and is then combined with recycled carbon dioxide (CO2) in a process known as methanation. It’s carbon neutral because the carbon dioxide would otherwise have been released into the atmosphere.

It’s carbon-neutral because the carbon dioxide would otherwise have been released into the atmosphere. 

Clean hydrogen: 

Hydrogen, for example, is being considered for its growing role in clean mobility. Its resurgence in automotive industry is noteworthy since vehicles running on hydrogen fuel alternatives achieve longer ranges. 

Refueling a hydrogen fuel cell vehicle is also much quicker than recharging an electric vehicle’s (EV) battery, and less damaging to the environment than vehicles running on fossil fuels.

Meanwhile, Japan invested $20 billion in its clean hydrogen strategy earlier this year. 

ALSO READ: Unlocking hydrogen’s potential: Trends to watch in 2024

Carbon capture and sequestration: 

This refers to the process of capturing from large point sources like power plants or industrial facilities and storing carbon dioxide underground, an a compressed state. Carbon capture allows for the continued use of fossil fuels, while simultaneously reducing the climate impact. 

Carbon capture and sequestration (CCS) is a three-step process:

• Capture: CO2 is separated from other gases produced at large industrial facilities or power plants.
  
• Transport: The captured CO2 is compressed and transported via pipelines to a suitable storage location.
  
• Storage: O2 is injected deep underground into rock formations, where it is permanently stored.

Financial benefits of decarbonization

Moreover, the financial benefits of this technology is astronomical. The carbon removal industry is estimated to be worth $1.2 trillion by 2050, but only if it reaches the gigaton scale (a billion metric tons removed). 

ALSO READ: Explainer: The business benefits of carbon accounting

These technologies are seen as important tools in the transition to a low-carbon economy, especially for industries that are difficult to fully decarbonize through electrification or other means.

Decarbonization: Next three years are crucial

Both Jamison and Shults agree that the coming years are critical for setting the course towards net-zero. “The first step in action is to set the goals,” Jamison advises. “Because without the goals, companies aren’t measuring their progress at all.”

Shults adds, “I’m not sure how a company survives the next 10, 15 plus years without this being an area of focus. Future generations are demanding it, and as companies, we need to listen.”

Collaboration, innovation, and commitment to sustainability will be key drivers of success in the journey towards a net-zero future. 

Listen to the full episode of Accenture’s “Built for Change” podcast.

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