Clean Technology from Innovation to Action

Written by Yoko Lu

Private sectors and governments from around the globe have set net-zero targets to combat climate change. Net-zero carbon emissions stem from climate science, but it is connected to society, politics, and the economy. Net-zero emission targets are necessary to meet the requirements of the Paris Agreement, and to ensure that the global average temperature does not reach beyond 1.5°C by 2050, which is based on the IPCC Special Report on Global Warming. The PricewaterhouseCoopers (PWC) Net Zero Economy Index 2021 shows that we need to reduce our carbon intensity by 12.9% annually, and we are far from the target, less than 3%. The transition is slow because over 80% of the world’s energy relies on fossil fuels. The global economy needs to be shifted if this needs to drastically change. Thus, it is a complex matter, where collaboration and partnership are needed for a wide range of actions from public and private industries. Policy and regulation, innovation, research and development, marketing, and advocacy are necessary to ensure the amplification of these actions.

While the Paris Agreement is aimed at the global level, each country is in charge for arranging their own framework to achieve the common goal. These frameworks will be delivered at the local level. Canada’s energy sector, for example, has set the net-zero electricity to achieve no greenhouse gases (GHG) emission by 2035. Among Japan, France, and the United Kingdon, Canada has joined to pledge to reduce carbon emissions to zero by 2050. This means to switch to zero carbon technology from fossil fuel use, which is currently at 70% for the energy consumption in Canada.?

Canadian Climate Institute (CCI) is a Canadian research organization that analyzes scenarios that Canada can reach net zero by 2050. The outcome showed that the scalation of technologies and current policies is critcal to reduce around two-thirds of emissions by 2030. Two net zero solutions defined by the CCI are: (i) Safe bets which are solutions that likely take the tole in reducing emissions, and (ii) Wild cards that have high risks but provide the most rewards to reach the Canadian 2050 goal but comes with uncertainty and do not ensure success. Most of the solutions are safe bets as they significantly contribute to the emission reduction. On other hand, wild card solutions usually make the use of newer technologies. Based on CCI’s study, Canada will likely succeed by relying mostly on safe bet solutions to achieve the 2030 target, which is vital for reaching the 2050 target. Meanwhile, wild card plays an important role in reaching the Canadian 2050 target despite of uncertainty and risks. The extent of the role depend on the scenarios, and the early-stage innovation become feasible, with the examination of their relative costs and scalability. CCI concludes that both safe bet and wild card solutions are needed to reach the goal. Both requires policy but in different directions: Safe bets need the driven mechanism for their extensive action and delivery while wild cards require growth and progress. CCI highlights that it is important for Canada to consider both safe bets and wild cards at same time to ensure successful transition to net zero.

Some of the solutions that are proven to decarbonize are renewable energy, nature-based solutions, fuel switching, and methane management. Deloitte is one company that contributes to developing technologies that addresses these solutions, including carbon capture, utilization, storage (CCUS), hydrogen, direct air capture (DAC), and small modular reactors (SMRS). In addition, tools that the private sector, government, and countries that can use are the following, based on the Net Zero Climate of the University of Oxford: “(1) Front-loaded emission reductions, (2) a comprehensive approach to emission reductions, (3) cautious use of carbon dioxide removal and storage, (4) effective regulations of carbon offsets, (5) an equitable transition to net zero, (6) alignment with broader-socio-ecological objectives, and (7) pursuit of new economic opportunities.”?

Canada is one of the leading countries on the road to zero carbon emissions. Canada has strong alignment nationally, involving government, private sector, community and individual, as well as Indigenous traditional knowledge and stewardship. Canada must continue to support its businesses to develop innovative solutions and technologies in clear energy, and collectively work towards transition and planetary health.