Decarbonising the engine of our world

By Nigel Topping, UN Climate Change High-Level Champion for?COP26

Industry drives the engine of our modern world, but it’s also the largest contributor to global emissions when direct and indirect emissions are included. In the fight against climate change, it’s the next frontier.

Urgent action is required across sectors to reduce emissions by 30 to 45 per cent by 2030 and achieve net-zero emissions by 2050.

No single factor will move the industrial sector to net zero. Rather it will require the convergence of new technologies and?business models, progressive public policies, enlightened consumer choices and forward-thinking investment decisions.

However we need to be mindful of the unique set of systemic challenges transforming the industry sector poses to developing economies. Africa for example, is at a crossroads. As one of the most vulnerable continents to climate change it has a strong incentive to join global efforts to reduce greenhouse gas (GHG) emissions. Yet at the same time governments need to ensure economic development to meet the basic needs of growing populations and create jobs and wealth.

In developed countries, full decarbonisation needs to be initiated today. This includes reducing the demand and carbon intensity of global cement and steel production. There is vast potential for green hydrogen to help decarbonise these sectors.

In 2021, more than 350 large-scale hydrogen projects were announced. Some countries, such as Brazil, which boasts one of the world’s highest percentages of electricity from renewables, are already building a hydrogen infrastructure that is expected to generate domestic revenues higher than $10 billion by 2040.

We also need to promote a circular economy to help reduce emissions and improve health. It’s not only essential for addressing our current planetary crisis but also represents a tremendous business opportunity.

The electronics industry is making progress to tackle e-waste by collaborating on a blueprint for action and committing to increase device lifespans of network devices, supported by legislation such as new common charging laws.??

Finally, we also need to incentivise businesses to act responsibly. At a global level, Non-State Actors (NSAs) are playing a key role in driving this transition. Launched at COP 26, The First Movers Coalition’s mission is to harness the purchasing power of companies to decarbonise?“hard to abate” industrial sectors such as concrete and steel. Since its inception, it has grown to 57 members with a combined market cap of $8.5 trillion and aluminium and carbon removals are now also included in the programme.

Central to the Climate Champions’ Breakthrough Agenda is once 20% of key actors within each sector commit to a net zero transformation,?sufficient momentum is generated to enable a critical mass of key actors to break away from the business-as-usual path and together deliver breakthrough outcomes at pace.

Net Zero companies will find they are far more resilient to the effects of climate change and natural disasters. Other business benefits will include considerable efficiency savings, lower costs, greater employee engagement, stronger brand loyalty and early access to new markets.

The bottom line is we need to produce what people want but in a way the planet can afford.