What is decarbonization.
Decarbonization is a process of
reduction or elimination of carbon dioxide from energy resources.
Why do we need it.
For the climate to stabilize the world need total decarbonization. Currently, we are on the track of making the global average temperature rise for 2-celsius degrees and above. Considering the melting of the glaciers, the water level of the seas has risen 6 meters since the world was industrialized and the average temperature is 2-celsius degrees higher. If carbon emissions won’t be stopped, average warming will increase to 3-celsius degrees, which will result in flooding many cities, including Miami, Shanghai, Osaka, Rio De Janeiro (the equivalent of 275 million people losing their home).
Ways of decarbonization.
Companies are trying to decarbonize the economy, which results in changes in their business models and many new technologies emerging. Renewable sources of energy are prioritized over fossil fuels. New energy carriers have been created, energy efficiency has been improved, emissions are being reduced.
Companies are taking steps to decarbonize the economy, including increasing electrification, usage of renewable energy, or intensifying energy efficiency measures, which are still a big challenge for the coming years. However, most of the companies declare being fully carbon-neutral by 2050.
The chemical industry is built on hydrocarbons, however, decarbonizing it would have a profound effect on the world. New technologies make it possible to use CO2 as a feedstock for chemicals and plastics. Moreover, Waste-to-hydrogen plants are being built.
The oil and gas market is currently in crisis, considering low demand caused by the global pandemic and excess supply from the recent oil price war. Decarbonizing may be prioritized by some companies in the short term, though difficult market conditions may encourage companies to experiment with it more and create new business models.
The power, utilities and renewables sector is moving the fastest towards decarbonization as it is a key attribute of customer engagement. They are largely working to expand their renewable energy portfolios. They increase the efficiency of their thermal power plants and improve energy efficiency in buildings.
The mining and metals sector relies mainly upon electrification and renewables. Most of the companies design their decarbonization strategies based on proven solutions and applying them globally to their facilities.